FFP sorted

[Artful]

This is the most mixed up post I've read in a long time..

- It's not good news, but your not bothered about the embargo? I'd say this is a win, Jan is a tough window and to be honest it's a far better situation than the Summer window.
- The loan has to be paid off over ten years, whether it be now or the last day. The owners can sell the club with this debt, so either way it'll get sorted and probably yearly until the 10th year.
- Yes, I'd imagine next two years will be tough and players will be sold to pay off some of this, what did you expect? The Smithies sale probably paid the court fees.
- Other clubs are FOOOOOKED, so entirely up to them if they take the gamble. e.g. Villa, Shef Weds etc etc... If they can afford to spend and balance the books, then its within the regs, if not they get a fine.

Thoroughly agree. Now been brought to a conclusion and can move on. We can in future wallow in the future sanctions on clubs gambling on getting to the promised land (and we all know how that can end)

[maidstone_hoop]

I think we have had a bit of a result tbh.

20 million fine (3mill for paying the EFL legal costs) paid over 10 years isn't to bad at all and really shouldn't effect any ambitions to stablilise and build this club.

However, the club must act very quickly in the transfer market as if we are in trouble in January there will be no last roll of the dice in terms of getting players in. We desperately need rb, lb cover, a new cb and a striker whether these are loans or permanents.

[The General]

Think this is a great result selling Smithies pays this for next 2 years now.
Good work Qpr Board

[dogsrrs]

So we can sign players now AT LAST ,we need to move very fast now,time running out

Come on Reb what makes you think we'll go out spending ? If we do spend any money it will be very selective , imo we mainly all agree what business we've did over the last two years has been the right way to go ! and I can't see any major changes to our current spending policies

[Jonny]

check out the financial sticky.

The key issue though is whether the share issue takes care of Ruben's crippling interest rates as well as the loan. Again, more in the sticky.

The settlement terms clearly stipulated that the owners reduce the burden of debt on the club - after all, this is exactly what FFP is supposed to govern ie. make sure wealthy owners don’t cake clubs in debt, later leave, and as a result, leave the club in masses of debt.

So the 22m loan capitalization is a reduction in our total debt sitting on the balance sheet (which at last count was circa 50m. Something like 46m owed to shareholders, and 4m owed to Barclays Bank). That 22m reduction amounts to a halving of of the debt owed to the owners.

As for the interest on the remaining debt of circa 24m to owners, remember that we don’t actually pay it, as per the trend of converting debt, and interest, to share equity. So diluting the owners. But not affecting the club.

[Undecided]

As for the interest on the remaining debt of circa 24m to owners, remember that we don’t actually pay it, as per the trend of converting debt, and interest, to share equity. So diluting the owners. But not affecting the club.

Agreed we don't effectively pay the interest, but it is still a hit to the P&L which counts towards the FFP loss limits. If we can eradicate the loan interest it gives more room for players wages, purchases etc.

Don't think we'll be finding out anytime soon though. The Club are appealing the judgement and will stay schtun in the meantime.

[WeAreQPR12]

I thought tony had come out and said the debt had been converted into equity to make the books look better or was that move blocked?

[Rangers77]

Bunchac unts. Tell the ELF to f uck off. And send the bill to those s hitty talentless mercenaries like Remy, Mbiae, those useless Chileans, Seizure, Bosw anka, Samba, that s hitty non Pirate, One Legged Park and the rest of them. Hughesless, too.

[Buffalo]

Does the £1.7m per year for the next ten years get excluded from any future FFP calculations?

The £1.7m a year does not come into FFP calculations.

I have just read that the EFL insisted on the loan/shares swap as a part of the deal because the whole idea of FFP is to stop owners saddling clubs with debt.

Edit: ignore me - I didn't see that there was 2nd page already

[Artful]

https://www.westlondonsport.com/qpr/...tions-answered

explains it all. Does not count in future FFP calculations

[davieqpr]

Us today but there will be a lot of clubs tomorrow.

[Artful]

Agreed we don't effectively pay the interest, but it is still a hit to the P&L which counts towards the FFP loss limits. If we can eradicate the loan interest it gives more room for players wages, purchases etc.

Don't think we'll be finding out anytime soon though. The Club are appealing the judgement and will stay schtun in the meantime.

On the official now

[OldR]

Bunchac unts. Tell the ELF to f uck off. And send the bill to those s hitty talentless mercenaries like Remy, Mbiae, those useless Chileans, Seizure, Bosw anka, Samba, that s hitty non Pirate, One Legged Park and the rest of them. Hughesless, too.

Did you protest when we were splashing the cash or is it just the failure and fall out which is upsetting you?

[WeAreQPR12]

Its not on the official

[Stanley]

One further point in addition to the now official release from the club - the club's shareholders have asked the EFL to consider donating a portion of the fine to the Grenfell community.