QPR1st believes that November was a great month, financially as well as on the playing side, for QPR FC. Our analysis suggests that, for the first month since the beginning of the season, the Club’s cashflow position improved, thanks to two 17,000 plus gates and the almost 16,000 that watched the Brentford game. We understand that the Club is budgeting for gates of 13,500-14,000 a game and estimate the club gained on budget by about £150,000 over the month.
We estimate the Club’s revenue at slightly over £0.6m, cashflow basis, in November, with outgoings at just under £0.6m. On a profit and loss basis, the Club is already losing money because season ticket revenues are spread across the year by the accountants whereas they actually come in a big lump early in the season. This is a concern because the time will come when the cashflow begins to reflect that loss.
Whilst very pleased to see the Club doing so well in November, QPR1st is very concerned that the financial position will weaken substantially during December and January. In December we face relatively unattractive fixtures against Hartlepool and Colchester whilst in January there is only one crowd-puller (against Brighton) to come. If an average 13,500 gate is sustained for the less attractive games, we believe that the Club’s cash-flow will dip into the Red during January. In December, we anticipate income to be £0.4-0.5m and outgoings to be pretty close to November levels. In January, we expect income to be lower again and outgoings to be £0.5-0.6m. QPR Holdings directors have pledged funds to meet future shortfalls,
but even so our calculations suggest that the Club will run up an operating loss of approaching £800,000 by the end of the financial year.
This suggests to QPR1st that the need for inward investment is becoming urgent but, in the meantime, there are things that QPR fans can do. For a start, keep coming to games. The football is fantastic and we believe that every extra 1,000 on the gate improves the cashflow by £15,000. Secondly, please dig deep for any collection that will help the Club. Whether it be the Hoops Fund or the collections that are going on to help the development of Rangers’ youth squads, please be generous. We have to keep our club afloat and in good enough nick to go up.
The QPR1st shadow budget has been developed primarily as a tool to aid the monitoring of the Club’s financial position. There is, of course, much that we cannot know, such as what the Club already owes outside the long-term loan, but we expect to continually improve our understanding of the Club’s financial dealings and to impart the implications of what we learn to our members. We are also developing the budget so that we can assess the implications of different events going into the future. What, for example, happens if we do not go up and what happens if we do?
QPR1st intends to publish monthly updates on its monitoring of the financial situation and to do a regular, consultancy-style, assessment of the Club’s position. We believe that this is necessary to improve the flow of information about the Club and, through that, to encourage further investment in the Club. There is much that is positive about our Club, such as continuing growth in the average gate and an operating profit/loss that is amongst the most improved in football. We believe that we can use the Shadow Budget to bring that out into the open.
New club lottery launched
The QPR Lottery ‘in2win’ has now been launched and for just £2 a week you will be in with a shout of winning one of a number of fabulous prizes – whilst helping the Club too. Prizes include a holidays in Paris, Amsterdam and Nice, brilliant QPR hospitality packages and signed memorabilia. All for just two quid a week.And entering couldn’t be easier. Just fill out a short form and pay by cheque or standing order. You can pay for one month or a year’s worth of weekly draws in one go, giving you more chances to win!
It’s easy to obtain a form. Either pop in and pick one up from Loftus Road or simple click here to download a pdf version
And the best news is that money from YOUR participation in ‘in2win’ will be donated to the QPR Centre of Excellence, to help the development of future stars here at Loftus Road. ‘In2win’ is a great opportunity for you and great news for the club. The first draw takes place on January 3rd, and you can be a part of it by filling out the short entry form. Remember: £2 per week gives YOU the opportunity to win some great prizes!