Championship Reading to be docked points ?

Financial shenanigans, a la Derby I think but it'll get watered down to a negotiated fine and suspended points deduction at worse I think.
 
With a possible 8 other clubs going to be looked at the relegation battle will be who gets deducted the most points. A good time to be shi* and have a poor season for some of the others
 
SteMerritt said:
From that article...

😲 That is utter madness.
Click to expand...

In what other business can you spend 194% of turnover on wages and think "oh yeah, that's fine."

I don't agree with everything Gary Neville says, but he did make a point in relation to the mess at Derby that owners should be personally liable if they're spending this money. It seems like they have a low risk/high reward gamble where if they get into the Premier League they could look to personally cash in, where as if they lose, they can say "oh no, that's the club that lost all that money... not me"
 
m said:
Is it just for being irritating or is there another reason too?
Click to expand...
For breaching profit and sustainability regulations. They are allowed to lose a max of £39million over 3 seasons. They will likely be well over that given their wage bill in 18/19 was at 194% of turnover and they had a total loss of £40million that year alone. They've tried the old sell the ground trick (they got £26.5million for it and now pay £1.5million/year rent). They were put under a transfer embargo in the summer for it pending further investigation, and are now set for a points deduction of between 6 & 9 points.
 
Jack Midson said:
In what other business can you spend 194% of turnover on wages and think "oh yeah, that's fine."

I don't agree with everything Gary Neville says, but he did make a point in relation to the mess at Derby that owners should be personally liable if they're spending this money. It seems like they have a low risk/high reward gamble where if they get into the Premier League they could look to personally cash in, where as if they lose, they can say "oh no, that's the club that lost all that money... not me"
Click to expand...
Is that right? presumably the monies to make up the 194% turnover spend is likely to have come from the owners and so if it’s written off, they lose out. If OUFC entered administration, it would be the current board who stood to lose whatever debt is in the club as I believe it is owed to them and not to other third parties (at least not any material amounts).
 
Wallop said:
Is that right? presumably the monies to make up the 194% turnover spend is likely to have come from the owners and so if it’s written off, they lose out. If OUFC entered administration, it would be the current board who stood to lose whatever debt is in the club as I believe it is owed to them and not to other third parties (at least not any material amounts).
Click to expand...
The ownership is likely through a web of companies, one company lending to another, ending up overseas. Would go down as a business debt.
 
Wallop said:
Is that right? presumably the monies to make up the 194% turnover spend is likely to have come from the owners and so if it’s written off, they lose out. If OUFC entered administration, it would be the current board who stood to lose whatever debt is in the club as I believe it is owed to them and not to other third parties (at least not any material amounts).
Click to expand...

To be honest I don't know. I'll freely admit I've made a bit of a generalisation and don't know what's gone on at Reading. Irresponsible owners are just a gripe of mine so I may have unfairly tarred them with the same brush, but if the owners are struggling to pay bills than inevitably the fans are having a hard time of it, which is really where my issue is. Some owners will absorb losses that come as a result of their overspending (like Abramovich at Chelsea or the UAE at Man City) but I'm also sure there are many instances in the past where owners have spanked the club's money i.e. spending next season's season ticket money or selling off club property and gambled that cash on getting up, before leaving the club in the lurch if it all goes wrong. By all means waste your own money if you foot the bill, just don't waste the club's in a bid to try and get a payday for yourself, and then wash your hands of it when it goes wrong.
 
Jack Midson said:
To be honest I don't know. I'll freely admit I've made a bit of a generalisation and don't know what's gone on at Reading. Irresponsible owners are just a gripe of mine so I may have unfairly tarred them with the same brush, but if the owners are struggling to pay bills than inevitably the fans are having a hard time of it, which is really where my issue is. Some owners will absorb losses that come as a result of their overspending (like Abramovich at Chelsea or the UAE at Man City) but I'm also sure there are many instances in the past where owners have spanked the club's money i.e. spending next season's season ticket money or selling off club property and gambled that cash on getting up, before leaving the club in the lurch if it all goes wrong. By all means waste your own money if you foot the bill, just don't waste the club's in a bid to try and get a payday for yourself, and then wash your hands of it when it goes wrong.
Click to expand...
I'd add - don't spend your own money even if you foot the bill and then walk away with a personal loss but leaving the club with ongoing outstanding player contracts and other debts it needs to try and service.
 
Derby, amongst many others are fabulously over spending.
When all of these completely unsustainable debts come home to roost one day, they’ll find that the coop has been sold off.🐓
 
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