Disastrous season puts QPR through financial hoops

The club, now chasing promotion in the Championship, the second tier of English football, managed to run up losses which were not only bigger than the £50 million or so incurred by each of Manchester City, Chelsea and Liverpool over a similar period, but actually exceeded their own turnover. But Fernandes has said he remains committed to the cluib for the long term.

“When, alongside my business partners, I purchased a majority shareholding in the club in August 2011, my goal was to turn QPR into an established Premier League club,” Fernandes reflected. He added: “Being relegated was obviously not part of our plans, but our focus and determination to achieve our long-term goals has not diminished.”

The loss for the year to 31 May 2013 reached £65.4 million, not far off triple the previous year’s £22.6 million, on turnover of just £60.6 million. Broadcasting rights, which are likely to be considerably lower this year as a result of the team’s relegation, accounted for the lion’s share of this, £42.7 million.

The period saw a raft of new players, including Julio Cesar, Esteban Granero and Christopher Samba joining the club, both in the summer and the January 2013 transfer window, as the club battled unsuccessfully for Premier League survival. It paid out £41.1 million on additional players in total.

No doubt partly as a consequence, aggregate payroll costs jumped from £58.5 million to £78 million, although the directors took no remuneration, down from £105,000 the previous year.

Net cash outflow from operations reached £44.4 million and the group received £72.7 million in shareholder financing. It also secured a £15 million short-term bank loan.

Net debt at the year-end totalled £177.1 million, nearly double the previous year’s total. At the balance-sheet date, the group’s deficit position had risen to £127.8 million, principally supported through financing obtained via shareholder loans.

Fernandes said: “With regards to the debt it is important to understand that this is through shareholder loans. The debt in the club is owed to the Shareholders by the Shareholders.We are all fully committed to QPR in the short, medium and long term and are 100% focused on delivering our vision for the club.