QPR’s problems not over

Queens Park Rangers have won promotion to the Premier League, but their financial troubles are not over.   The club are £177m in debt, having posted the biggest losses in the country of £65.4m last year. This was largely the result of their wage bill which at £78m is higher than that of Borussia Dortmund and Atlético Madrid, both Champions League finalists in the past two seasons.

Queens Park Rangers have won promotion to the Premier League, but their financial troubles are not over.   The club are £177m in debt, having posted the biggest losses in the country of £65.4m last year. This was largely the result of their wage bill which at £78m is higher than that of Borussia Dortmund and Atlético Madrid, both Champions League finalists in the past two seasons.

The club also faces a heavy fine under the Football League’s financial fair play rules.   Promoted teams are fined a graduated Fair Play Tax based on the excess by which they fail to meet the requirements. This rises to 100 per cent for losses of £10m or more.   If last year’s losses are replicated, the club could face a penalty of approaching £50m.

A vote among Championship clubs to increase the permitted losses from £10m to £12.5m received majority support, but not the 75 per cent required for it to be passed.   There may be another vote, but in any case QPR may mount a legal challenge.  Owner Tony Fernandes has said that he will fight the fine.

Promotion guarantees a minimum of £134m over the next five years in television payments and parachute payments, even if QPR survive for just one season.   Sponsorship deals and merchandising could boost this to £150m.

However, it has to be remembered that this a gross figure and does not take account of additional spending on transfer fees and wages.   However, this may not be necessary in QPR’s case given the number and quality of players they have in  place.    Tony Fernandes says that he has learnt his lesson on excessive spending, particularly in terms of being manipulated by agents.