By Jonny Fordham
October 01, 2009
Reading FC have tonight released information on the club's finances following pressure from the fans.
The club decided to release the document detailing their financial situation following chants of "Where's the money gone" after Royals were beaten 3-1 at Madejski Stadium by Sheffield United on August 22nd.
The statement reads: "When we entered the Premier League back in 2006, we had lost a total of Â£12,000,000 in the previous two seasons. The majority of that came in 2005/6 when the board made a conscious decision to invest heavily and push for promotion.
"In our two seasons in the Premier League, the club received a total of Â£54,450,000 from central payments, including all television revenue. However, for those two seasons our wage bill was Â£59,370,000, outstripping central money received by almost Â£5,000,000.
"Taking into account all other revenue, but before transfer activity, in our two Premier League years we made an operating profit of Â£6,300,000 then Â£7,000,000 respectively. That money was reinvested on two fronts - Â£10,600,000 on player transfers, and a further Â£7,450,000 on club infrastructure. Therefore, we came out of our two seasons in the Premier League with a deficit of Â£4,750,000.
"Last summer the board again made a concerted attempt to ensure promotion, and every aspect of the club was run at a Premier League level - for example our wage bill was double that of the last time we were in the Championship. Even taking into account a parachute payment of Â£11,500,000 we made a loss of Â£6,265,000 last season.
"Historically, the club has been able to manage any ongoing deficit thanks to a bank overdraft facility. However, as a result of the economic climate, this summer the club was asked to repay the total Â£7,500,000 overdraft, and we also needed to cover the Â£6,265,000 loss from last season. In order to help repay that total of Â£13,765,000, we raised Â£11,000,000 from the sales of Kevin Doyle, Stephen Hunt and Andre Bikey.
"Despite that, the board have still invested Â£3,000,000 on transfer fees this summer. We remain on very solid financial foundations and are budgeting to break even this season. We are still enjoying the most successful period in the club's entire history, and we are confident we can once again push for success under Brendan Rodgers.
"For the avoidance of any doubt, Sir John Madejski has not requested any repayment of his loans to the club. This club has known unprecedented success under Sir John Madejski, and no individual has ever done more for Reading Football Club.
"During the past four seasons we have finished first and fourth in the Championship, as well as eighth in the Premier League, arguably the best league in the world. We would like to think that our success in the past few seasons demonstrates we can run the club in a prudent manner, but still achieve historic results on the pitch.
"Financial prudence has been absolutely vital to our success in the past few seasons, and we will continue to run Reading Football Club in a manner that the board believe gives us the best chance of success and stability in both the short and long term."
For more see Friday's getreading.
http://www.getreading.co.uk/sport/footb ... avy_losses
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