Massive £80m Losses Could Lead To £60m Fine For Basket Case club
If ever there was a club that wasn’t a model for others to follow it would be Queens Park Rangers.
In a desperate bid to compete and get to, and stay in, the Premier League, the London club appear to have every chance of becoming another Portsmouth.
It is now reported by the Daily Mail that QPR’s losses for last season (2012/13) could be as high as £80m, thanks massively to transfer fees and wages of up to £100,000 or more on players such as Loic Remy, Samba, Ji-Sung, Jenas, Cesar and numerous others.
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To compound matters, a player such as Cesar is on reported £90,00 wages but is out of favour, whilst Park Ji-Sung is on loan at PSV with Rangers continuing to pay most of his £70,000 a week wages. As to what the deal is with Loic Remy we can only wonder as he is rumoured to be QPR’s top paid player.
As if things can’t get worse, with falling into the Championship the London club are in line to be the first big casualty of the Financial Fair Play (FFP) rules already put in place by the Football League.
What the rules basically amount to is that any Championship club making losses over £18m in the current season (2013/14) will be fined £1 for every £1 they lose over that amount.
This would be due to be paid in January 2015 and estimates are putting Rangers’ losses this season as being even as high as last year, particularly with lost TV revenue – a nightmare scenario that could see QPR facing a fine of up to £60m or so.
A Football League spokesman said;
‘This is the first season in which clubs will ultimately face sanctions and clubs have to submit accounts for 2013/14 by December 1 2014, with sanctions then levied in early 2015. If a club being sanctioned are in the Premier League by then, the fine will need to be paid.’
Fines paid by clubs were originally believed to be going to the other clubs who stayed within the rules but for ‘political’ reasons it is reported that any money generated by sanctions will be donated to charity instead.
The last public accounts for Rangers were for the 2011/12 season and they made a loss of £22.6m and had debts of £89m, their wage bill having doubled then from £29.7m to £58.4m.
The Mail claim that QPR’s wage bill last season could have been as high as £90m which would equate to around one and a half times as much as they actually turned over! With players such as Remy, Samba, Park, Hoilett, Bosingwa and others having to be added to the near £30m wage bill of the previous season.
An ideal ratio of wages to turnover is seen as 50%, Rangers’ last season will have been around 150%…only ‘100%’ out!
Whether QPR’s mad finances would help/hinder any possible Newcastle deal for Loic Remy is open to debate, what would appear to be clear is that surely it is a no-brainer that even if Rangers are promoted they will have to get the likes of Remy off their wage bills and also pull in as much transfer cash as possible to help them survive.
Sadly the QPR fans are caught up in the middle of this madness and more than one or two of them must be casting a look to just how far Portsmouth have fallen before the supporters came to their rescue.
The chaotic running of clubs such as Portsmouth and QPR are those who are at the very core of what the various FFP initiatives are trying to avoid in this country and elsewhere, especially the nightmare scenario of clubs folding mid-season as has happened in other leagues abroad.
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