QPR financial results: Rangers face huge fine in top flight of debtors

Wage bill of Championship side higher than Champions League finalists Borussia Dortmund

“Doing a QPR” could soon enter the lexicon of football disasters in the same way as Leeds and Portsmouth have. The club have reported staggering losses that are almost certain to result in either an unprecedented fine or an extended transfer embargo.

The punishment will be for not just breaching the Football League’s new Financial Fair Play rules, but for flying a metaphorical fleet of jumbo jets through it since airline entrepreneur Tony Fernandes took control.

The financial results QPR Holdings Limited returned are for 2012-13, at the end of which the club was relegated to the Championship. The permitted loss under FFP is £8m; Rangers lost £65.4m. Of English clubs only Manchester City and Chelsea have ever recorded higher losses in a season.

The club’s player wage bill rose to £68m, higher than Champions League finalists Borussia Dortmund. It is also higher than their turnover and Rangers would have gone bust but for injections of capital from the owners. The club’s net debt is now a barely believable £177m with Fernandes’ Tune group owed £115m.

Harry Redknapp pictures on Sky Sports News during one of the transfer windows Harry Redknapp pictures on Sky Sports News during one of the transfer windows Fernandes has big dreams for QPR with a 40,000-seat stadium being planned, and a new training ground on the drawing board, but at the moment his ownership is turning into a nightmare.

When he bought QPR in August 2011 he spoke of being “prudent”. They were then embarking on their first season back in the top flight for 15 years and were totally ill-prepared for it after a summer of stasis under the previous owners. Fernandes took the first of many plunges into the transfer market, signing Joey Barton on £65,000 a week.

He has since dispensed with two managers while investing to keep Rangers in the Premier League, then again to get them back into it. Barton’s wage has been eclipsed many times. Yet after taking two points from 15, and sliding to fourth in the Championship, they are struggling to gain promotion.

There will be no sanctions applied to their spending in the 2012-13 season (the one for which accounts have just been released) but there will be for that in the current season. While QPR do not have to reveal those figures to the league until December there is very little prospect of their losses being reduced to the permitted £8m.

While the wage bill has been reduced by loaning out Loic Remy, Esteban Granero, Adel Taarabt and others including, eventually, Julio Cesar, and Chris Samba has been sold, there are still many high-earners such as Barton and Shaun Wright-Phillips on the payroll. Harry Redknapp has also spent £10m on Matt Phillips, Charlie Austin and Karl Henry, signed Richard Dunne, Danny Simpson, Gary O’Neil and Yossi Benayoun on frees, and loaned in Benoit Assou-Ekotto, Niko Kranjcar, Tom Carroll, Kevin Doyle and Modibo Maiga.

Since they will only receive a parachute payment of £15m income is likely to be halved leaving the club with a loss of between £30-50m.

If they do not go up Rangers would then face a transfer embargo from the January 2015 transfer window that would last until they show they can meet FFP. That may not be achieved until well into 2016. If they do go up they face a fine – the Financial Fair Play Tax – assessed on a sliding scale. QPR’s penalty is likely to be £25m-35m, but could be higher.

The club is thought to be one of those preparing a legal challenge to FFP – a challenge the League have indicated they would resist ‘robustly’. It was voted in by a 21-3 majority in April 2012 (QPR, then in the Premier League, did not vote).

Rangers lost £41m on transfers in 2012-13. The wage bill was further swelled by high profile free transfers acquisitions.

Hoop dreams: QPR’s 2012-13 arrivals

C Samba (Anzhi) £12.5m

L Rémy (Marseilles) £9.2m

E Granero (Real Madrid) £7m

S Mbia (Marseilles) £5.2m

S Diakité (Nancy) £3.5m

J Hoilett (Blackburn) £3.3m

J-S Park (Man United) £2.7m

J Cesar (Internazionale) Undis

A Johnson (Fulham) Undis

Y Suk-Young (Chunnam)Undis

J Bosingwa (Chelsea) Free

R Green (West Ham) Free

J Jenas (Tottenham) Free

S Magri (Portsmouth) Free

R Nelsen (Tottenham) Free

Fabio (Man United) Loan

Suggested Topics
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Sport
Laura Trott with her gold
Commonwealth Games
Arts and Entertainment
Gal Gadot as Wonder Woman
film
News
Bryan had a bracelet given to him by his late father stolen during the raid
people
Sport
France striker Loic Remy
sportThe QPR striker flew to Boston earlier in the week to complete deal
Extras
indybestSpice up your knife with our selection of delicious toppings
Caption competition
Caption competition
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Career Services

Day In a Page

A new Russian revolution: Cracks start to appear in Putin’s Kremlin power bloc

A new Russian revolution

Cracks start to appear in Putin’s Kremlin power bloc
Eugene de Kock: Apartheid’s sadistic killer that his country cannot forgive

Apartheid’s sadistic killer that his country cannot forgive

The debate rages in South Africa over whether Eugene de Kock should ever be released from jail
Standing my ground: If sitting is bad for your health, what happens when you stay on your feet for a whole month?

Standing my ground

If sitting is bad for your health, what happens when you stay on your feet for a whole month?
Commonwealth Games 2014: Dai Greene prays for chance to rebuild after injury agony

Greene prays for chance to rebuild after injury agony

Welsh hurdler was World, European and Commonwealth champion, but then the injuries crept in
Israel-Gaza conflict: Secret report helps Israelis to hide facts

Patrick Cockburn: Secret report helps Israel to hide facts

The slickness of Israel's spokesmen is rooted in directions set down by pollster Frank Luntz
The man who dared to go on holiday

The man who dared to go on holiday

New York's mayor has taken a vacation - in a nation that has still to enforce paid leave, it caused quite a stir, reports Rupert Cornwell
Best comedians: How the professionals go about their funny business, from Sarah Millican to Marcus Brigstocke

Best comedians: How the professionals go about their funny business

For all those wanting to know how stand-ups keep standing, here are some of the best moments
The Guest List 2014: Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks

The Guest List 2014

Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks
Jokes on Hollywood: 'With comedy film audiences shrinking, it’s time to move on'

Jokes on Hollywood

With comedy film audiences shrinking, it’s time to move on
It's the best of British art... but not all is on display

It's the best of British art... but not all is on display

Voted for by the British public, the artworks on Art Everywhere posters may be the only place where they can be seen
Critic claims 'I was the inspiration for Blanche DuBois'

Critic claims 'I was the inspiration for Blanche DuBois'

Blanche Marvin reveals how Tennessee Williams used her name and an off-the-cuff remark to create an iconic character
Sometimes it's hard to be a literary novelist

Sometimes it's hard to be a literary novelist

Websites offering your ebooks for nothing is only the latest disrespect the modern writer is subjected to, says DJ Taylor
Edinburgh Fringe 2014: The comedy highlights, from Bridget Christie to Jack Dee

Edinburgh Fringe 2014

The comedy highlights, from Bridget Christie to Jack Dee
Dame Jenny Abramsky: 'We have to rethink. If not, museums and parks will close'

Dame Jenny Abramsky: 'We have to rethink. If not, museums and parks will close'

The woman stepping down as chair of the Heritage Lottery Fund is worried