Board Writes off 60m of QPR Debt - One for the Tony bashers

[vblockranger]

No its not them and us VBlock.. How can you even say that.

We're supposed to be together.. everyone in this club.. Your the type of rotten negative fan that isn't needed IMO. At this stage of the season everyone needs to be together.
I don't know how you can sit there and say that to be honest... Its slightly disgusted me.

You stoop to new lows.

Least you still got a sense of humour

[vblockranger]

yeah... writing £60m off is writing £60m off. the only way the shareholders could now get the money back would be to sell the club at a big profit (something that seems a bit unlikely).

whether it's a trick is a bit more debatable... i'd need to be able to actually read the books, but what i think the books will show that the shareholders have cancelled the club's liability to repay loans made during previous financial years. this is fairly straightforward when the person writing off the debt is completely independent from the company that has taken out the debt, but seems a bit murky when the person making the loan owns the company, because usually investing money into a club is recorded as 'financing' on the balance sheet and the amount invested has no impact on the profit/loss position recorded on the operating statement, whereas cancellation of liability is normally recorded as 'other income' on the operating statement and therefore has (in this instance) a huge impact on the profit/loss position (reducing the loss from £69m to, somewhat conveniently, £9m).

if this is the treatment, then the shareholders' logic is clear... it's better to write £60m off and cop for a fine of about £300k than to pay a £57m fine (presumably funded by further loans) and keep the original loan payable.

the league is in a difficult position though... if they allow us to get away with this accounting treatment, it's a safe bet that other clubs will adopt similar approaches probably involving much higher amounts (there are much worse transgressors of these rules elsewhere).

Good post and what i think also. Whichever way we look at it the board swallowing £60 million can only be a good thing and if they get away with it and dont have to now pay the FFP fine then hats off to TF , an accountant himself, as a shrewd bit of thinking.