QPR

You’ve read it wrong.
They lost £68mill in their last financial year, but they now have total debts of £177.1mill!!!! :ohmy: :ohmy: :ohmy: :ohmy:

18,000 gates, Redknapp in charge, bigger wage bill than Borussia Dortmund, what is they say about a fool and his money?

They might as well start again as FC Shepherds Bush or something if Fernandes jacks it in.

But it is highly likley that the debt will be in the form of a shareholder loan from the owner as he will be bank rolling from his personal wealth. This is why Noblot have such a large debt and until last year we had one (albeit smaller).

If he wants to avoid FFP he will just convert (effectively write off the debt) the loan into equity and hey presto.

No outside party or bank is going to lend money to either QPR or Noblot (unless they have a guarantee from their owner) as they know that they would never recover it if the company became bankrupt.

Financial rules mean that the owner will have to confirm that they will continue to fund the company so that it can be considered a “going concern.”

He knows there is no chance of recovering the loans but he will have what is referred to as a charge on the company so if he decided to stop funding the club, it would enter administration and his debt would have priority so he would effectively meaning he can take back the club for peanuts and start again.

When a company goes bust, the equity owners are at the bottom of the priority list once the administrator sells the assets. Loan note holders are much nearer the top. Also as the largest debtor he is likley to have 90%+ of the debt and would therefore be in a position to negotiate a voluntary arrangement (say agree all debtors accept 1p for every £1 of debt) and he then doesnt need to liquidate the company – therefore it doesn’t have to start again – like Rangers did.

But given the PL money he will likley as not just convert the loan into equity and get on with life.

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