Why 2 companies?

[Stanley]

I'm no businessman so maybe a naive question, but curious to know why the club needs to be divided into two companies - QPR Holdings and QPR FC?
And how many other football clubs do this?

[Kirill]

I blame Gianni.

[stan_bowles]

Southampton did it and the holding company went bust.Not sure how it actually works though.

[PeterG]

QPR holdings PLC was originally the holding company for 2 sports clubs, QPR FC and Wasps. these needed to be seperate from each other for various reasons hence the seperate companies. the football club company holds the football league golden share and this is another reason for keeping it seperate from the main group company.

[Receed R]

stan im sure u asked exactly the same question last week

[W10 RANGER]

I actually don't get it

[Stanley]

stan im sure u asked exactly the same question last week

Nope, wasnt me. Have often wondered about it but first time of posting.

PeterG, thanks for that background info, although still dont really get it.

[TheOddPost]

There are two companies to separate Loftus Rd stadium from the playing side. The ground is in the holding company and the playing side in Qpr FC.

The reason for this is because if the football team went bust the debt couldn't be reclaimed against the ground. However, in our case I believe the ground is fully mortgaged anyway.

Southampton went bust, but the company that owns the ground didn't. A new football side was set up and continued to pay rent to the ground owners. Normally, the same people own both but technically they are separate legally.

Palace did this and Ron Noades kept the ground when he sold the football team to Jordan. Many years ago Wrexham got bought out as one company and the owner tried to septate the two and got into all sorts of mess with the supporters and the courts and got accused of asset stripping the club.

It's easy for the football team to go bust with player wages and not being in the premier, so separating the two means that if there are financial problems the ground won't be sold to cover the debt and sold to Tescos!

[westsussexranger]

i thought it was something to do with buying the club and or avoiding admin
didnt flav have to create a company to buy the club
and like ken bates made leeds utd limited so he could keep the club after going inot admin

[TheOddPost]

i thought it was something to do with buying the club and or avoiding admin
didnt flav have to create a company to buy the club
and like ken bates made leeds utd limited so he could keep the club after going inot admin

Leeds were Ltd before Ben Bates got there, they were listed on the Stock Exchange under Ridsdale. Bates bought it and it went into administration because of the debt, Bates then put in the best bid to buy it back with only 10% of the debt left. The other 90% of the debt went when debtors got 10-12p in the £1

[Receed R]

i thought it was something to do with buying the club and or avoiding admin
didnt flav have to create a company to buy the club
and like ken bates made leeds utd limited so he could keep the club after going inot admin

southampton had the same setup to us, they put their holdings company into administration thinking it was a loophole but they still got a points deduction anyway and subsequently was relegated

[Stanley]

There are two companies to separate Loftus Rd stadium from the playing side. The ground is in the holding company and the playing side in Qpr FC.

The reason for this is because if the football team went bust the debt couldn't be reclaimed against the ground. However, in our case I believe the ground is fully mortgaged anyway.

Southampton went bust, but the company that owns the ground didn't. A new football side was set up and continued to pay rent to the ground owners. Normally, the same people own both but technically they are separate legally.

Palace did this and Ron Noades kept the ground when he sold the football team to Jordan. Many years ago Wrexham got bought out as one company and the owner tried to septate the two and got into all sorts of mess with the supporters and the courts and got accused of asset stripping the club.

It's easy for the football team to go bust with player wages and not being in the premier, so separating the two means that if there are financial problems the ground won't be sold to cover the debt and sold to Tescos!

Thanks TheOddPost. Very interesting.

[Sam-QPR]

a holding company is usually used for owning shares in different companies. so i would presume it was used for wasps and qpr as said earlier

[PeterG]

"a holding company is usually used for owning shares in different companies. so i would presume it was used for wasps and qpr as said earlier"

indeed, its nothing to do with avoiding admin etc, the football club company is a wholly owned subsidiary