|Do football clubs NEED to make a profit? 16:50 - Nov 14 with 1035 views||smuttsontour|
Noticed Hoos' go-to line in favor of the proposed new stadium has always been regarding sustainability. As football clubs are more than just businesses (hard to quantify to external stakeholders) - is the financial loss every year offset by the community facility it ultimately is?
[Post edited 14 Nov 2019 16:50]
|Do football clubs NEED to make a profit? on 16:55 - Nov 14 with 1012 views||PinnerPaul|
Not many do.
Most non football companies however do not have shareholders prepared to fund losses year after year - that's the only reason most keep going.
As long as you pay your creditors/staff no reason any FC or PLC can't lose money every year, but it has to be funded somehow - which is where football and the real world diverge!
|Do football clubs NEED to make a profit? on 17:37 - Nov 14 with 952 views||BazzaInTheLoft|
Football clubs don’t, but Airline CEOs and Property Developers do.
As you say Football Clubs should be a asset to the community not a vehicle for profit. That’s not just the Commie bastard in me speaking, because in prior days Owners brought football clubs mostly as a hobby or as a sort of gift to the community they came from.
John Reid of the LSA stands outside LR most days selling his fantastic book ‘Reclaim The Game’ on the subject.
[Post edited 14 Nov 2019 17:43]
|Do football clubs NEED to make a profit? on 17:48 - Nov 14 with 926 views||BrianMcCarthy|
Under FFP we certainly need to come close to making a profit.
|Do football clubs NEED to make a profit? on 17:54 - Nov 14 with 915 views||CroydonCaptJack|
£39m loss over three years isn't really that close though Brian is it?
|Do football clubs NEED to make a profit? on 23:29 - Nov 14 with 706 views||timcocking|
If you've the money of the Mittals, for example, the losses we make are chickenfeed, so to speak.
|Do football clubs NEED to make a profit? on 09:27 - Nov 15 with 633 views||blacky200|
But these people didn't make their billions by running companies at a loss.
|Do football clubs NEED to make a profit? on 09:41 - Nov 15 with 622 views||CliveWilsonSaid|
I think Lee Hoos said at the fans forum that he'd be happy if we were able to break even.
|Do football clubs NEED to make a profit? on 10:03 - Nov 15 with 609 views||StanFan|
We all know that FFP or whatever it is called now is just nonsense. Clive has written far more eloquently on the subject than I ever could.
But the fact that you are allowed to sell your ground to comply is insane. This is meant to be about making clubs sustainable. Separating the club from its one big asset does the exact opposite and the current rules pretty much encourage this behaviour. It is laughable that the case against Sheff Wed is based on the timing and the price of the sale not the fact that they are doing it at all.
I am so relieved that we seem to have sensible people running this club who really are trying to make us sustainable. If that means that it is hard for us to compete against the clubs engaged in dodgy behaviour, so be it. Maybe one day the league will do its job and create a level playing field where all clubs are forced to behave sustainably - but I'm not holding my breath.
|Do football clubs NEED to make a profit? on 10:10 - Nov 15 with 599 views||BazzaInTheLoft|
I truly believe that if the football part of QPR doesn’t start making money for our board, then the property part will instead.
I truly fear for the assets associated with our club. I expect us to be West Hammed at some point.
|Do football clubs NEED to make a profit? on 11:27 - Nov 15 with 577 views||davman|
Only one answer to this - no, they don't, as long as there are owners willing and with the means to fund the losses.
However, with the rules in place, we are still limited to £13m per year. Add that to our "normal" expenditure and we still are only mid-table in the match day revenue available to most Championship teams.
If we move somewhere to get other money in, we'll be better off, no doubt.
|Do football clubs NEED to make a profit? on 12:06 - Nov 15 with 542 views||Juzzie|
I would also ask does ANY company need to make a profit, certainly a significant one at that?
As long as all income is then invested back in terms of company development etc, shareholders dividends etc then anything extra is just a 'waste'. Companies sitting on millions of the pounds in the bank does what exactly?
OK, maybe I'm simplifying things and maybe I don't fully understand the complexities of business but just seems odd to me that companies can often have huge amounts of money doing nothing but then refuse to give staff a decent wage or invest in infrastructure etc.
|Do football clubs NEED to make a profit? on 12:35 - Nov 15 with 501 views||qprd|
The entity controlled by the mittal family owns less than 2-3% of qpr
|Do football clubs NEED to make a profit? on 12:36 - Nov 15 with 501 views||PinnerPaul|
But they are only picking up a small part of the loss now aren't they - 10%? Is that right?
|Do football clubs NEED to make a profit? on 13:10 - Nov 15 with 487 views||qprd|
The shareholders dont pick up any of the loss. QPR is a limited liability company, so the shareholders dont technically eat the loss, at least not directly
the loss is ultimately absorbed by the shareholders in two indirect ways
-the cost is borne by whichever shareholder (recently its been ruben) decides to extend qpr the shareholder loan we need at the beginning of the year to not become bury. the loan will never be repaid, and may become more shares. congrats ruben, you now own 10% more of a company thats worth just above zero
-its also borne indirectly by shareholders like fernandes and the mittals who realise they dont want to throw more money into a bottomless pit... their interest in the club then gets diluted by ruben.... in reality its not a loss, as theres not really much difference in owning 5% or 2% of a company thats £0
|Do football clubs NEED to make a profit? on 14:25 - Nov 15 with 458 views||BrianMcCarthy|
No, but thankfully it's put an end to our stupid years.
|Do football clubs NEED to make a profit? on 20:37 - Nov 15 with 369 views||Miss_Terraces|
This, if you don't have owners to cover the costs. Don't expect the football league, to even try and help your club.