Aministration within 18 months if we are relegated

[kron-1664]

If you offset the money fernandes has spent against the marketing budget for a global airline to get the same exposure the prem has brought Air Asia i think it would significantly reduce the pointless outlay, also, the increased passenegrs will again offset the money spent out. There is a re sell value on a number of our players to again recoup some money if neccessary . We have mittal investing as well so this would take some pressure off tony and his consortium.

[QPR71]

We will be in administration within 18 months if we go down, 89 million debt with this years to come, no way are our rich owners going to right that off, that debt will be reduced if we manage to sell our most valuable players, but we will have to bring in players that are good enough to get us out of the championship.

Even if we stay up we will still make big loses as we would have to strengthen the side, and the only way we can stop the losses is build a bigger stadium, but we still have to get the fans in to fill it, ok the TV money will be increased but will that be enough, I would like to hear a statement from our owners on the situation of the amount of losses that we are racking up and putting our minds at rest.

the debt issue
there are two ways of looking at debt in this situation. 1, a team like portsmouth,borrow cash, will pay interest on the cash and the bank will want repayment from revenue.
2, succesful businesmen with their own cash buy assets in the club they own. these assets are worth something, the money has not gone down a hole.
for instance £12 mill of the debt is sitting in 60acres of land for the training ground. in QPR accounts, the cash is owed as a debt, but on the credit side the land is held as an
asset. chris samba £12.5 mill, also a debt balanced by an asset. from the viewpoint of th individual board members accounts, cash has been transferred to an asset and the accounts are balanced.
assets, cash, commodities its all the same in accounts.

[Macca]

I am just worried it is a big debt, and if they do pull out will they take their debt with them, or just take what that is offered for the club which would be a considerable amount with the assets the club has, I was looking a the worst scenario if they did pull out and left us in the mire.

[QPR71]

I am just worried it is a big debt, and if they do pull out will they take their debt with them, or just take what that is offered for the club which would be a considerable amount with the assets the club has, I was looking a the worst scenario if they did pull out and left us in the mire.

check out the offish site for an article by one of the board saying this is not a 4 year plan...more like a 40 year plan...
if a board member wanted to pull out, the others would be fighting each other to buy the shares. the Mitals wanted 100%
before TF and co arrived. if they bought out 22% then mittals have 56%, bhatia is chairmen and all is good.

debt reports in the papers are arrived at looking at only one column of the accounts, typical press

[Westbyfleetr]

Isn't Man Utd's debt something like £500m?

[Norths]

Isn't Man Utd's debt something like £500m?

Pretty sure its even more than that...

[Ginger Ninja]

Isn't Man Utd's debt something like £500m?

Pretty sure its closer to 800m

[Jeffro]

Think Macca's had a pretty bad day, not a bad poster and this seems very out of character.

Macca football gates are a thing of the past. They used to be a major factor back in the 90's when we lost our best players to teams like Newcastle who could gain 50k every week.

Now you have massive money with Sky and that money is going up every year. Gates receipts don't add up to what the television revenue offers and next season a premier league side would be looking at 50million min, so think you're looking at the issue if we get relegated.

Its all about sky money and Asia marketing with our owners. They have no choice but to make it work.

[Bluehoop]

The OP is pretty much repeating the rubbish that was aired on Talk$hite yesterday when that numpty Durham starting spouting half baked and unresearched turd on the back of the published accounts.
There are plenty of people on this thread and the other one on topic who have commented positively about the position and I agree generally with that stance.
The media seem to get away with talking rubbish more and more these days without doing proper research and cherry picking information to suit their stance. How is that so?

[qprted]

this is rubbish

this is rubbish dont forget we have the backing of the richest family in england if fernandes wanted to borrow 100 million pounds of them that could be arranged
but already qpr have got a plan that is there if we drop

samba will be sold for....................15,000,000
remy..........................................10,0 00,000
granero........................................5,0 00,000
mbia...........................................10, 000,000
diakite..........................................5 ,000,000
tarrabt.........................................10 ,000,000
etc etc etc 55 million pound recoverd and we still have brilliant players like hoilet who we can rebuild our new team around,we still have zamora and botheroyde,we syll have a team capable of a promotion surge

[Gerryhatrick]

I'm not overly concerned.

Parachute payments will help for a couple of seasons to control the losses and help with the wage bill, which is exactly why it exists.
After that, player contracts terms will be ending so we can restructure if we don't bounce back within that 2 years.

More of a worry would be if the present board walked away, but all signs are that they want to invest for the long term.