With The Royals suffering in their latest post-relegation season, the accounts for the year ending June 2014 show that it was broadcasting and media where the biggest income fall occurred- dropping from £48.3 million to £27.5m.
According to the club's latest accounts—reported by Insider Media—commercial income also fell from £5.3m to £3.8m. Yet, it is perhaps in matchday income that the most worrying decline is taking place, with turnover dropping 39% from £9.3m to £5.7m.
This is worrying for Reading, as this indicates the decline from the Premier League season to last season's 7th-placed finish. Furthermore, it is becoming clear that the 2014/15 season is becoming one of the worst attended seasons in the club's recent history; setting us up for another drop in turnover.
Totalling up the losses means a pre-tax deficit of £7.3m, tripling up from £2.3m, which will leave the club teetering on the brink of any Financial Fair Play implications. With three clubs already treated to transfer embargoes, it will be a nervous wait before confirmation of The Royals' FFP fate.
In response to the losses, co-chairman Sir John Madejski wrote of 'enormous upheaval' and focused on the positives in the annual report:
"In spite of a somewhat turbulent 12 months we have, as ever, enjoyed some great success throughout the club. After gaining category one status in 2013 our academy has gone from strength to strength, earning a place in the semi-ﬁnals of the FA Youth Cup for the ﬁrst time in our history, whilst also lifting the Under 21 Premier League Cup with a wonderful victory over Manchester City.
"It is very pleasing for all of us that the academy has come to the fore; within just four games of the present campaign we had set a club record for the number of academy graduates to make their ﬁrst team debuts in a single season and I have no doubt there will be many more to come under the tutelage of Eamonn Dolan."
With the Thai Takeover completed, the fallout to the Zingarevich era is still vivid when viewing how the club operates in 2014, and well into 2015, meaning the future of the club is still far from settled.
What do you make of the club's accounts? Comment below.