Money, Money …. Money?

Many people are getting excited about the new Premier League TV deal, announced yesterday, and what it means to clubs like Reading. Local media have been sensationalising this as much as possible, using words like “TV windfall” – so let’s have a brief look at what this actually does mean for a club like Reading.

Due Diligence? Diligence Due!

I hate having to write this. I wish I could be like the vast majority of other Reading fans and rejoice in the signature of Jimmy Kebe on his contract extension, and sit back and speculate on all the players Reading are going to buy.

But sadly I can’t. I don’t know if I’m naturally suspicious, or if I’ve spent too much time with supporters of other clubs across the country, listening to the tales of their ownership changes, good and bad, but one thing strikes me.

More Questions Than Answers – further thoughts on the potential Reading FC takeover

It’s a confusing time to be a Reading supporter. In terms of what’s officially come out of Reading FC, we’ve had two very brief statements on the website and an on-pitch announcement from Sir John Madejski over the MadStad PA system. Apart from that, all other tangible information seems to be coming out of the pages of the Daily Mail.

Well and Truly EPPPed Off!

Amongst all the normal Premier League hype over the past week, there have been only a few mentions of the Elite Player Performance Plan (or EPPP as it is better known). But this is something that every supporter of a Football League club really ought to know all about, since this is something that could change the whole nature of the English game, and indeed threaten the existence of a good number of Football League clubs.

How McDermott could cope with Long’s departure

August 11, 2011

Shane Long’s departure to West Brom for an estimated £6-7.5m has been finalised, and as a result Reading fans have let panic kick in. It’s happened every summer for the past few years, and will probably continue to happen for the foreseeable future. We will continue selling our best players for amazing profits and will continue replacing them with young, hungry, ambitious players.

How can McDermott and Reading fans cope with the loss of star striker Long and continue challenging for promotion from the Championship? After the jump, I’ll run through a few choices McDermott will have on his mind.

The A-word

There’s a word that seems to be cropping up more and more often these days : “Ambition.”   It seems that “lack of ambition” is the ultimate insult in football, and that’s a term that’s being constantly thrown at Reading FC over recent weeks.   So let’s take a closer look at “ambition” and what it means.

Are Reading a selling club?

After the disappointing, but possibly inevitable, sale of captain Matt Mills to fellow Championship side Leicester City we thought it was about time we addressed the question – Are Reading a selling club. Here Michael Wade, Daniel Wimbush and Jon Keen attempt to tackle the debate head on – but we want you to have your say too – so get involved via Facebook and Twitter @thetilehurstend and we will publish the best views.

Made a note in my diary – simply said “Bugger”

So, Christmas day has been and gone, and after all the expectation the exquisitely wrapped present turned out to be just a lump of
coal.

Perhaps the big mistake was investing so much emotional energy into the game, but in many ways that’s unavoidable.  It’s been interesting over the past couple of weeks to see the differing excitement levels of different Reading supporters.   The youngsters who’ve never experienced a play-off final before, have been massively excited and completely invested in the final, but the older heads have been a bit different.   As well as being more world-wise and cynical, they’ve (or rather we’ve!) started off being a lot more detached, and refusing to get fully drawn into the excitement – possibly as a defence mechanism.    

An Open Letter to Sir John Madejski

Dear Sir John

A few hours before the start of what may be one of the most decisive matches in Reading FC’s long history, I thought it apposite to write an open letter regarding the future of our club.  It’s clear to all that the club is potentially at a crossroads – promotion to the Premier League will make the club a much more attractive asset to potential buyers, whilst another year in the Championship will inevitably mean the sale of some or all of the club’s more valuable players.   Both of these outcomes are virtually inevitable given the broken financial model that is English football in the Twenty-First century.

The Promotion Paradox

 Of course, every football supporter wants their team to be playing in the top division, and to see them competing with the best.   So with preparing for the play-offs there’s understandable excitement  in the air – noticeably much more excitement that the last play-off “adventure” in 2009, when the team’s spirit had evaporated over the previous few months and everyone knew we were destined to fail.  But this year there is a tangible feeling that this is quite possibly our time again. 

But we’ve been there before, and we know what the Premier League is like, so the excitement is tinged with a certain amount of worry, for me at least.  Being a match-going supporter of a team in the Premier League is quite horrible compared with supporting one in the Championship, so it’s a bit of a paradox.    Yes we all want to go up – but will we enjoy it if we get there? 

How to make a small fortune from football. (Part Three)

In part one of this article I discussed the unique set of factors that have come together at Reading FC and have created a situation where Sir John Madejski has been able to defy conventional wisdom and make money out of owning a football club.  These key factors are finding a football club that’s relatively run-down and without significant debts , which can bought relatively cheaply; the presence of a co-operative local council to enable land purchase and ease planning permission; a suitable location in an affluent area with good communication links; and taking a long term view and investing in infrastructure rather than gambling success on big money players.

In the second part I went through the actual numbers involved, and showed that the sum owed to Sir John on the club’s balance sheet in the form of Chairman’s Loan is now £25.8M – the terms of which are heavily weighted to the advantage of the football club.  Now it’s time to tie those two strands together and to look at how Sir John can turn his investment into an actual profit.  Because the obvious point, and his biggest problem right now, is that he makes no money or realises none of his profit whilst his investment is tied up in the club.

How to make a small fortune from football. (Part Two)

Yesterday in the first part of this article I talked in general terms about the four unique factors surrounding Reading FC which enabled Sir John Madejski to work a miracle and make money out of owning a football club.  These were that the club was relatively run-down and without significant debts so could be bought relatively cheaply; the presence of a co-operative local council which would provide land and planning permission without significant difficulties; a suitable location in an affluent area; and taking a long term view and investing in infrastructure.

Today, as promised, I’ll delve more deeply into this, and look at the actual numbers involved so we can get an idea of just what this investment was and its likely value now.