6.7 million profit

[Dirk Gently]

Hence my point. Promotion this season is vitally important.

The club needs to make a decision.

1) Calculated gamble – invest in the team to ensure the best chance of promotion, thereby securing a minimum of 3 years of significant increases in revenue (1 Prem season + 2 parachute payments)

2) Take the frugal option to ensure that we are not left short when parachute payments run out.

I fear that if we go for 2), we will miss out on promotion, our competitive advantage through the parachute payments will be gone, and we will be just the next in the long list of clubs who had a stint in the premier league, only to be long forgotten.

However, I would be utterly delighted to be proved wrong.

The problem that this is not a year-by-year thing.

They did take a calculated gamble last season, and ran everything on the football side on the same budget as the previous year (except for economies in players' hotels.) That gamble failed to pay off.

So they're part-way through a "we'll gamble in year one then play it safe" option.

[Ian Royal]

Forget money for a moment.

We have a fairly large squad, so if anything we need to shift players before bringing others in to avoid getting it even bigger.

We need a streamlined squad with quality and some back up. Not a large squad of mediocre back up and a bit of quality.

[Tilehurst Mike]

not another one of these threads.............

But very valid points. If we had been a bit more ambitious over the past couple of years we would not have been relegated from the Premiership. Theres a diference between being prudent and running a tight ship and the need to be realistic in order to compete or survive at the level you are playing at.

What are the club's ambitions for next season-do we really know?? I think the lack of ambition and comments coming out of the club are quite negative reflected by the fact that a large percentage of supporters have yet to renew their season tickets. A few promising yioungsters who have been on loan at predominantly Div 1/Div 2 teams if not the answer if we are going to lose more experienced 'star' players and not replace them with quality signings.

[Smoking Kills Dancing Doe]

Same old story.

I I note that those who harp on about Coppell having had millions at his disposal are still quiet.

Had millions but didn't spend eh?

So how come all of a sudden we we came down we weren't allowed to invest but he had to sell?

And now we have a new manager again we're looking to the youth and looking to sell?

Same old Madejski, always a tight git. His fault we came down. He's raking it in. But then it's thanks to him we went up in the first place so I can't fault the guy.

I know it seems to get harder to argue it, but why would JM hold money back when we were in the Premiership, when getting relagated cost him a lot, lot more than signing the right winger and centre mid we needed to stay up? Just isn't logical.

[Ian Royal]

not another one of these threads.............

But very valid points. If we had been a bit more ambitious over the past couple of years we MAY not have been relegated from the Premiership. Theres a diference between being prudent and running a tight ship and the need to be realistic in order to compete or survive at the level you are playing at.

What are the club's ambitions for next season-do we really know?? I think the lack of ambition and comments coming out of the club are quite negative reflected by the fact that a large percentage of supporters have yet to renew their season tickets. A few promising yioungsters who have been on loan at predominantly Div 1/Div 2 teams if not the answer if we are going to lose more experienced 'star' players and not replace them with quality signings.

No guarantee we'd have stayed up when we got relegated, or the season after, had we spent an extra £5m a couple of years ago and £10m last season.

[Ian Royal]

Same old story.

I I note that those who harp on about Coppell having had millions at his disposal are still quiet.

Had millions but didn't spend eh?

So how come all of a sudden we we came down we weren't allowed to invest but he had to sell?

And now we have a new manager again we're looking to the youth and looking to sell?

Same old Madejski, always a tight git. His fault we came down. He's raking it in. But then it's thanks to him we went up in the first place so I can't fault the guy.

Continue to ignore the argument posed against your point of view if you want. But please don't claim those who disagree are quiet because we have no counter argument. You're just ignoring it.

[Ian Royal]

Exactly, Player wages are not the only increased expense in the Premier League!

How much does Prozone cost?
How much do the back ground staff cost?
Media Centre maintenance and staffing?

Etc etc etc.

[Mr Angry]

Why are certain posters reacting as if this is, in some why, a shock??

There are very few clubs who operate any sort of transfer policy that isn't based upon a "sell first, buy second" model - it makes perfect sense.

[IMAMATEOFJOVSKY]

What would be interesting is if Doyle said he wanted to stay........would the hierarchy almost encourage him to go so that IWS could balance the books?? -

[Royal Rother]

Why are certain posters reacting as if this is, in some why, a shock??

Because some people are thick as shit.

And FTR Blue Elm is Scooby / Blue and White Kitten etc. etc. from 6 years ago.

[Sun Tzu]

Same old story.

I I note that those who harp on about Coppell having had millions at his disposal are still quiet.

Had millions but didn't spend eh?

So how come all of a sudden we we came down we weren't allowed to invest but he had to sell?

I suspect that people just aren;t prepared to repeat endlessly the counter to your very twisted view of the situation !

I doubt anyone serioulsy thinks there was a large sum of money sat in a bank account waiting to be spent.

More than one manager in the past has spoken of how the process works and it involves the manager and DofF putting a case to the board for funds to buy a player and (generally) that funding being approved.

Obvioulsy that can change from day to day, season to season. The board may decide that £4 million is an acceptable spend on a player like Lescott, then decide that £4 is not a good deal for another player a year later.

I think you need to let go of the idea that JM has a tin box under his bed that he keeps stuffed with cash and the manager gets a bit of it to buy players....

[Seal]

Hence my point. Promotion this season is vitally important.

The club needs to make a decision.

1) Calculated gamble – invest in the team to ensure the best chance of promotion, thereby securing a minimum of 3 years of significant increases in revenue (1 Prem season + 2 parachute payments)

2) Take the frugal option to ensure that we are not left short when parachute payments run out.

I fear that if we go for 2), we will miss out on promotion, our competitive advantage through the parachute payments will be gone, and we will be just the next in the long list of clubs who had a stint in the premier league, only to be long forgotten.

However, I would be utterly delighted to be proved wrong.

The problem that this is not a year-by-year thing.

They did take a calculated gamble last season, and ran everything on the football side on the same budget as the previous year (except for economies in players' hotels.) That gamble failed to pay off.

So they're part-way through a "we'll gamble in year one then play it safe" option.

Not a year by year thing? Hmmmmm not sure I agree with that. Surely football is the ultimate year by year business, bearing in mind your performance during the course of one year can dramatically effect your revenue streams.

'Running' things is also very different to investing. Defining RFC's strategy last year as a 'gamble' is also generous to say the very least. They'd make a very dull poker player anyway...

[Royal Rother]

I’ve also seen some conflicting numbers in this thread. The latest Deloitte Report (published in June 09), says Reading’s 07/08 operating profit was £12.5m, and 5 year operating profit stands at £13.9m.

It might help to know that Operating profit is stated before taxation and before losses / profits on player trading.

[Seal]

I’ve also seen some conflicting numbers in this thread. The latest Deloitte Report (published in June 09), says Reading’s 07/08 operating profit was £12.5m, and 5 year operating profit stands at £13.9m.

It might help to know that Operating profit is stated before taxation and before losses / profits on player trading.

Indeed it would. The taxation element I can understand. However seems strange that player trading does not affect
operating profit. However, I have absolutely no desire to get into an accounting debate re: balance sheets and P&Ls, so I will leave it there.

Nevertheless, nice to see us making money. Just a shame we got relegated.

[IMAMATEOFJOVSKY]

Same old story.

I I note that those who harp on about Coppell having had millions at his disposal are still quiet.

Had millions but didn't spend eh?

So how come all of a sudden we we came down we weren't allowed to invest but he had to sell?

I suspect that people just aren;t prepared to repeat endlessly the counter to your very twisted view of the situation !

I doubt anyone serioulsy thinks there was a large sum of money sat in a bank account waiting to be spent.

More than one manager in the past has spoken of how the process works and it involves the manager and DofF putting a case to the board for funds to buy a player and (generally) that funding being approved.

Obvioulsy that can change from day to day, season to season. The board may decide that £4 million is an acceptable spend on a player like Lescott, then decide that £4 is not a good deal for another player a year later.
I think you need to let go of the idea that JM has a tin box under his bed that he keeps stuffed with cash and the manager gets a bit of it to buy players....

Not being funny, but what the f**k does the board actually know about football players and what they can bring to the club - I find it hard to believe that a guy of Coppells experience and nowse goes to the board asking for a player that he feels will add to the current squad, only for Sir Ego and his motley crew to offer pearls of wisdom and basically tell Coppell hes wrong!!

[Dirk Gently]

Not being funny, but what the f**k does the board actually know about football players and what they can bring to the club - I find it hard to believe that a guy of Coppells experience and nowse goes to the board asking for a player that he feels will add to the current squad, only for Sir Ego and his motley crew to offer pearls of wisdom and basically tell Coppell hes wrong!!

They don't (if, by "the Board", you mean the two named Board memebrs required by company law) - in reality only one shareholder actually exerts any power or decision making in this.

And that one one shareholder doesn't pretend to know anything about football and he's happily admited it many times - see the hundreds of threads explaining exactly what Nicky Hammond's role at the club is!

[Thaumagurist*]

I think you need to let go of the idea that JM has a tin box under his bed that he keeps stuffed with cash and the manager gets a bit of it to buy players....

Of course, as any fule knows, most of Mr Madejski's cash is tied up in captial/investments/assets.

[brendywendy]

Not being funny, but what the f**k does the board actually know about football players and what they can bring to the club - I find it hard to believe that a guy of Coppells experience and nowse goes to the board asking for a player that he feels will add to the current squad, only for Sir Ego and his motley crew to offer pearls of wisdom and basically tell Coppell hes wrong!!

They don't (if, by "the Board", you mean the two named Board memebrs required by company law) - in reality only one shareholder actually exerts any power or decision making in this.

And that one one shareholder doesn't pretend to know anything about football and he's happily admited it many times - see the hundreds of threads explaining exactly what Nicky Hammond's role at the club is!

indeed


their input is purely financial / business wise
the football decisions about which player, and how much to offer is down to the football management team

[Sun Tzu]

Becasue of course what do most football people actually know about businesses and money !!

OK Coppell has a degree in economics but in general if you left running a football club to the football people you'd have 92 bankrupt clubs in about 5 minutes rather than the well run, financially sound affairs we have at the moment.

[Royal Lady]

So if "by the board" Sun Tzu is referring to JM, and JM has admitted he doesn't know that much about football (although after 15 years or whatever it is, surely he knows a lot more now than he did at the beginning) how does he decide whether he's going to pay £4 million for a player or not???