Sir John - Royals still on solid ground

Ben Steele • Published 2 Oct 2009 15:25 3 Comments

READING chairman Sir John Madejski insists the club remains on a "very solid footing" financially - despite revealing losses of almost £11m for the last three seasons.

The club today (Friday) published a detailed insight into its finances since the start of its days in the Premier League.

And they shone an interesting spotlight on the cash swilling around England's top flight.

But despite that £11m shortfall, Sir John told The Chronicle he anticipated the club breaking even this season, before trying to re-establish themselves at the top table.

He explained: "I think compared to most clubs we are on a very solid footing and we certainly are not going to drive it into the ground.

"We have enjoyed some great successes and some not such successful times - that's football and that's sport.

"But hopefully our fortunes will start turning around and we can make a serious play for the Premier League again."

The true costs of Premier League football were revealed by the fact Royals finished their two seasons there with a deficit of £4.75m.

Indeed a gargantuan wage bill of £30m per year accounted for almost all of the television payments and other central revenue the club received.

However, other revenue streams saw the club post operating profits of £6.3m and £7m for those two years.

But, when transfers and investment in the club's infrastructure was taken into account, that £13.3m profit was turned into the near £5m deficit.

Things did not improve last season, and despite an £11.5m parachute payment, the club made a loss of nearly £6.3m.

When the club was asked in the summer to repay its £7.5m overdraft, along with the previous season's deficit, £11m was raised from the sales of Stephen Hunt, Kevin Doyle and Andre Bikey.

And with £3m being invested in new players, the club is now aiming to be able to counter the outstanding £5.8m by the end of the season.

And the chairman admitted: "We have gone for gold and perhaps spent more than we would have liked to going for gold.

"We have always been transparent at the club and we have not done this until now as we wanted to get the facts ready to release at the end of the latest transfer window.

"We now feel able to share with the fans the financial circumstances of the football club."

See Thursday's Chronicle for an in-depth interview with the Royals chairman.

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• 

  Megs
  Unregistered User
  Oct 6, 11:46
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  If you believe that old codswallop your believe anything.. no mention of rent from London Irish.. record gates receits, shirt sales...there is no way RFC are £11m in the red .. unless the Millenium Himnhotel is dragging them down ???
  
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• 

  Megs
  Unregistered User
  Oct 6, 11:53
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  Forgot to mention...two season in the premiership £60m two parachute payments £23m.. this money alone would easily cover RFC's wage bill..pull the other one Johnny !!!
  
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• 

  Megs
  Unregistered User
  Oct 7, 11:58
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  Forgot to mention.. the £5m for Shorey,,, and the £5m for Kitson..Just where has all the money gone...
  
  Recommend?   Yes 0     No 0

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