Financial problems rise for relegation threatened QPR
According to the accounts, for the year ending 31st, May 2012, Queen Park Rangers’ wage bill has almost doubled from £27.6 million to £58.5 million, in the very first season since returning back to the Premier League.
Despite the fact, two managers have been sacked within two seasons, and the club flirting with relegation, financially, the Rangers are in a very good position, courtesy owner Tony Fernandes, who has never backed off from injecting cash into the side.
The club’s overall revenue has improved almost four times, rising from £16.2 million to £64 million. At the same time, the club has reported an overall pre-tax loss of £22.6 million, filed at Companies House earlier this week while the club’s net debt stands at £88.9 million.
While the club’s match day income are hampered by the size of the Loftus Road stadium, the most worrying sign for the Londoners is their burgeoning wage bill.
Fernandes, well aware of the scenario admitted that the board are concerned with the expenditures, was quoted in the Guardian:
“A critical driver of any club’s value is its presence in the Premier League and the club achieved its key objective for the 2011-12 season, by successfully securing its Premier League status for the coming season.
“The financial results reflect the club’s focus on on-pitch success. There are a number of potential risks and uncertainties that could have a material impact on the group’s long-term performance.
“These risks and uncertainties are monitored by the board on a regular basis.”
Previous manager Mark Hughes was backed with splurge of cash as he bought top players like Julio César, Shaun Wright-Phillips and Park Ji-sung followed by Bobby Zamora and Djibril Cisse in January 2012.
Understandably, the wage bill rose high and wages to revenue ratio stood at over 90% – more than any other clubs apart from relegated Bolton and Blackburn. And this is not inclusive of the transfers (and subsequently wage records) done in the latest transfer window.
In January, Harry Redknapp signed Loïc Rémy and Christopher Samba to save the club from relegation.
Despite QPR winning their last league game away at Southampton, the club is still four points away from safety. The ambitious owner is looking for a bigger ground and also wishes to retain the status of Premier League club for years to come.