Profits

[corbray]

http://www.dailymail.co.uk/sport/foo...ent-wages.html

so i was reading this article about aston villa being in serious trouble, the figures are from last season but apparently according to deloitte we actually turned over a profit of 3.3m last season which was the highest in the championship.

the table is at the bottom of the page on that article but if i'm reading it right then thats brilliant news

[SpongeParr]

Nice reading, for a change.

[klonk]

http://www.dailymail.co.uk/sport/foo...ent-wages.html

so i was reading this article about aston villa being in serious trouble, the figures are from last season but apparently according to deloitte we actually turned over a profit of 3.3m last season which was the highest in the championship.

the table is at the bottom of the page on that article but if i'm reading it right then thats brilliant news

unfortunately we didn't turn a profit... i think deloittes have tried to invent a measure to show a comparison of clubs when player trading is removed - it's not a daft idea, but what's left over is both encouraging, but ultimately simplistic (newcastle looks terrible for example, but this ignores the fact that they received enormous transfer fees). you could argue that, if you remove transfer fees for a fair comparison, parachute payments should also be stripped out - this would move us from bottom of the table to the play-off spots instantly.

[Jonny]

unfortunately we didn't turn a profit... i think deloittes have tried to invent a measure to show a comparison of clubs when player trading is removed - it's not a daft idea, but what's left over is both encouraging, but ultimately simplistic (newcastle looks terrible for example, but this ignores the fact that they received enormous transfer fees). you could argue that, if you remove transfer fees for a fair comparison, parachute payments should also be stripped out - this would move us from bottom of the table to the play-off spots instantly.

Not strictly true Klonk, we did turn a profit, or to be more precise we produced gross profit. The best in the league which is a superb turnaround.

Revenues minus cost of goods sold = gross profit. Cost of goods, in football terms, means the product being manufactured, which is the players themselves. So their wages. This is why the turnover-to-wages ratio is so important in football as it is the leading indicator of financial health.

Simply it tells you if you are making or losing money from your core operations on an annual basis.

Re. Player trading - this is increasingly less and less of an issue for QPR as we are no longer a transfer bearing business - in or out.
We are making money and hence no need to add more and more financial loans, to cover an annual loss, which in turn affects FFP calculations (which are based on special football accounting practices, not pure profit and loss).

[QPRDave]

Not strictly true Klonk, we did turn a profit, or to be more precise we produced gross profit. The best in the league which is a superb turnaround.

Revenues minus cost of goods sold = gross profit. Cost of goods, in football terms, means the product being manufactured, which is the players themselves. So their wages. This is why the turnover-to-wages ratio is so important in football as it is the leading indicator of financial health.

Simply it tells you if you are making or losing money from your core operations on an annual basis.

Re. Player trading - this is increasingly less and less of an issue for QPR as we are no longer a transfer bearing business - in or out.
We are making money and hence no need to add more and more financial loans, to cover an annual loss, which in turn affects FFP calculations (which are based on special football accounting practices, not pure profit and loss).

[loftbalcony]

At this rate we will that well the club will pay us to come to games.