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
Life and Style
life
News
Brad Pitt and Angelina Jolie reportedly married in secret on Saturday
peopleSpokesperson for couple confirms they tied the knot on Saturday after almost a decade together
Life and Style
Chen Mao recovers in BK Hospital, Seoul
health
News
Joan Rivers has reportedly been hospitalised after she stopped breathing during surgery
people81-year-old 'stopped breathing' during vocal chord surgery
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Arts and Entertainment
tv
News
i100
Arts and Entertainment
Diana from the Great British Bake Off 2014
tvProducers confirm contestant left because of illness
Arts and Entertainment
Lisa Kudrow, Courtney Cox and Jennifer Anniston reunite for a mini Friends sketch on Jimmy Kimmel Live
tv
Life and Style
fashion

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

Ukraine crisis: The phoney war is over as Russian troops and armour pour across the border

The phoney war is over

Russian troops and armour pour into Ukraine
Potatoes could be off the menu as crop pests threaten UK

Potatoes could be off the menu as crop pests threaten UK

The world’s entire food system is under attack - and Britain is most at risk, according to a new study
Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Seoul's plastic surgery industry is booming thanks to the popularity of the K-Pop look
From Mozart to Orson Welles: Creative geniuses who peaked too soon

Creative geniuses who peaked too soon

After the death of Sandy Wilson, 90, who wrote his only hit musical in his twenties, John Walsh wonders what it's like to peak too soon and go on to live a life more ordinary
Caught in the crossfire of a cyber Cold War

Caught in the crossfire of a cyber Cold War

Fears are mounting that Vladimir Putin has instructed hackers to target banks like JP Morgan
Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years

Salomé: A head for seduction

Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years. Now audiences can meet the Biblical femme fatale in two new stage and screen projects
From Bram Stoker to Stanley Kubrick, the British Library's latest exhibition celebrates all things Gothic

British Library celebrates all things Gothic

Forthcoming exhibition Terror and Wonder: The Gothic Imagination will be the UK's largest ever celebration of Gothic literature
The Hard Rock Café's owners are embroiled in a bitter legal dispute - but is the restaurant chain worth fighting for?

Is the Hard Rock Café worth fighting for?

The restaurant chain's owners are currently embroiled in a bitter legal dispute
Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival

In search of Caribbean soul food

Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival
11 best face powders

11 best face powders

Sweep away shiny skin with our pick of the best pressed and loose powder bases
England vs Norway: Roy Hodgson's hands tied by exploding top flight

Roy Hodgson's hands tied by exploding top flight

Lack of Englishmen at leading Premier League clubs leaves manager hamstrung
Angel Di Maria and Cristiano Ronaldo: A tale of two Manchester United No 7s

Di Maria and Ronaldo: A tale of two Manchester United No 7s

They both inherited the iconic shirt at Old Trafford, but the £59.7m new boy is joining a club in a very different state
Israel-Gaza conflict: No victory for Israel despite weeks of death and devastation

Robert Fisk: No victory for Israel despite weeks of devastation

Palestinians have won: they are still in Gaza, and Hamas is still there
Mary Beard writes character reference for Twitter troll who called her a 'slut'

Unlikely friends: Mary Beard and the troll who called her a ‘filthy old slut’

The Cambridge University classicist even wrote the student a character reference
America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone

America’s new apartheid

Prosperous white districts are choosing to break away from black cities and go it alone