The Tilehurst End - Reading FC and Financial Fair PlayReading FC blog run by fans, for fans.https://cdn.vox-cdn.com/community_logos/52568/tte_fav.png2015-03-30T16:19:19+01:00http://thetilehurstend.sbnation.com/rss/stream/69319262015-03-30T16:19:19+01:002015-03-30T16:19:19+01:00Royals Fined By Football League
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<p>Following a breach of the rules surrounding a loan, Reading have been ordered to pay a £30,000 fine. </p> <p>The financial goings-on of the last couple of seasons have come back to bite Reading, with the Football League handing the Berkshire club a £30,000 fine for misconduct. The source of the problem is a loan that Reading took from Vibrac, a company whose involvement with the Royals <a href="http://thetilehurstend.sbnation.com/2014/6/13/5806302/lenders-under-the-microscope">was reportedly the subject of some scrutiny </a>last June. That loan totalled roughly £10m, but counts as a breach of the rules as Vibrac are involved financially with three other teams.</p>
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<blockquote lang="en" class="twitter-tweet">
<p>Reading fined £30,000 by <a href="https://twitter.com/football_league">@football_league</a> for taking loan from Vibrac, offshore entity with "interests" in three Premier League clubs</p>
— Paul Kelso (@pkelso) <a href="https://twitter.com/pkelso/status/582545457848721408">March 30, 2015</a>
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<p>That said, it's not all bad news - our new Thai owners repaid the entirety of that loan from Vibrac when they arrived last year. Plus, due to Reading's cooperation with the Football League, payment for the fine has been delayed until May 2016. However, that does not apply to legal fees. You can read the full <a href="http://www.football-league.co.uk/news/article/2015/football-disciplinary-commission-judgment-reading-2366530.aspx">official statement from the Football League here.</a></p>
<p>All in all, this news is a double-edged sword. On the one hand, it's very clear just how deep the ramifications of the previous ownership are. On the other, the club does seem to be dealing with problems such as these pretty effectively: the loan from Vibrac has already been repaid, and it's encouraging that our cooperation with the authorities has been noted.</p>
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<blockquote lang="en" class="twitter-tweet">
<p>Reading have been fined £30,000 by the Football League for taking a £10m loan from Vibrac. <a href="https://twitter.com/hashtag/readingfc?src=hash">#readingfc</a></p>
— Charles Watts (@charles_watts) <a href="https://twitter.com/charles_watts/status/582548195609296896">March 30, 2015</a>
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<p>The £30k fine is supsended until May 2016 so <a href="https://twitter.com/hashtag/readingfc?src=hash">#readingfc</a> shouldn't have to pay it. They will have to cover the £39k legal costs though.</p>
— Charles Watts (@charles_watts) <a href="https://twitter.com/charles_watts/status/582550831297392640">March 30, 2015</a>
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<p>So all in all <a href="https://twitter.com/hashtag/readingfc?src=hash">#readingfc</a> borrowed £16,085,000m from Vibrac and had to pay back £17,884,198m due to interest.</p>
— Charles Watts (@charles_watts) <a href="https://twitter.com/charles_watts/status/582551818527514624">March 30, 2015</a>
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https://thetilehurstend.sbnation.com/2015/3/30/8312537/royals-fined-by-football-league-reading-fcThe Tilehurst End News Desk2014-12-22T11:33:53+00:002014-12-22T11:33:53+00:00The Cost Of Relegation: Reading FC Losses Triple
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<p>Reading FC's pre-tax financial losses have tripled, as income fell in the last year with the club's finances in desperate need of re-balancing.</p> <h3><b>The Figures</b></h3>
<p>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.</p>
<p>According to the club's latest accounts—reported by <a href="http://www.insidermedia.com/insider/south-east/130370-reading-fc" target="_blank">Insider Media</a>—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.</p>
<p>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.</p>
<p>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.</p>
<h3><b>The Response</b></h3>
<p>In response to the losses, co-chairman Sir John Madejski wrote of 'enormous upheaval' and focused on the positives in the annual report:</p>
<blockquote>
<p>"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.</p>
<p>"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."</p>
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<p>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.</p>
<p><b>What do you make of the club's accounts? Comment below.</b></p>
https://thetilehurstend.sbnation.com/2014/12/22/7433317/the-cost-of-relegation-reading-fc-losses-tripleThe Tilehurst End News Desk2014-12-15T10:44:13+00:002014-12-15T10:44:13+00:003 Championship Clubs Hit With Transfer Embargoes
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<p>FFP has been a hot topic around these parts with Reading's Director of Football Nick Hammond saying the club were hopeful but not 100% guaranteed of meeting the requirements. Today we've found out that three clubs have been hit with sanctions. </p> <p>At the moment Reading are not one of the club's who've been hit with a ban.</p>
<p>However, the Football League have confirmed that they're still evaluating several clubs, so we're not out of the woods quite yet.</p>
<p>Leeds, Blackburn and Nottingham Forest are the three clubs who will now be barred from signing new players unless specific criteria are met.</p>
<p><a href="http://www.football-league.co.uk/news/article/2014/championship-financial-fair-play-season-201314-submissions-2144136.aspx" target="_blank">As per the Football League's website.</a></p>
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<p>Blackburn, Leeds and Forest all exceeded the maximum permitted deviation of £8m - consisting of a maximum adjusted operating loss of £3m plus a further maximum of £5m of shareholder investment - during the 2013/14 playing season. Each club will have the opportunity to have its FFP embargo lifted at the end of the season by demonstrating that it has stayed within the maximum permitted deviation of £6m (£3m operating loss plus £3m shareholder investment) for the 2014/15 season.</p>
<p>The Football League has also confirmed the way in which FFP embargoes will operate for clubs placed under this sanction.</p>
<p>Clubs will be prohibited from registering any new professional players (permanent contract or loan) unless they have:</p>
<p>• 24 or fewer established players (players aged 21 or over that have made at least 5 starting appearances for the club). <br> <br>Where clubs have fewer than 24 established players, they will only be permitted to sign players in the following circumstances (with the player in question being added to the club's list of established players regardless of his age or previous playing experience):</p>
<p>• Where the employee costs of a player being signed are less than £600,000 per annum (or pro-rata if signed on a shorter contract).</p>
<p>Where clubs have 24 established players, they will be permitted to trade on a ‘one out, one in' basis but only if the employee costs of the player coming in to the club are no more than whichever is the lower amount of:</p>
<p>• 75% of the equivalent costs of the player going out. <br>• Or a maximum of £600,000 per annum (or pro-rata if signed on shorter contract) <br> <br>In addition:</p>
<p>• Clubs under an FFP embargo will be permitted to sign a goalkeeper on an emergency basis (in line with existing regulations). <br>• Clubs under an FFP embargo will not be permitted to pay transfer fees or compensation fees for professional players. <br>• Clubs under an FFP embargo will not be permitted to pay a loan fee to another club, they may only pay the player's wage (or a contribution towards it). <br>• For incoming players, clubs can only pay Agents' Fees as a benefit in kind to the player in question (as long as they do not exceed the £600,000 employee costs limit).</p>
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<p>We'll keep you posted with any further developments as they break here on The Tilehurst End.</p>
https://thetilehurstend.sbnation.com/2014/12/15/7393183/three-championship-clubs-hit-with-transfer-embargoesThe Tilehurst End News Desk2014-12-10T12:28:31+00:002014-12-10T12:28:31+00:00Former Reading Owners Report Record Debt
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<p>Reading FC Holdings PLC, the company that owned the club during last season's ownership crisis, have revealed debts of £65 million, with the figure highlighting the truly dire state of the club's finances during the 2013/14 campaign.</p> <p>The figures were reported earlier this morning by <a target="_blank" href="http://www.getreading.co.uk/sport/football/football-news/reading-football-club-holdings-debt-8260591">GetReading</a>. Reading FC Holdings owned 49% of the club during the Zingarevich era before taking on the remaining 51% once the Russian's consortium reneged on of their commitment to complete their takeover last September.</p>
<p>RFC Holdings is the parent company to Madejski Stadium Hotel Ltd., with directors consisting of John Madejski, his two daughters Helen & Camilla Morris, Ian Smith, and <a href="https://thetilehurstend.sbnation.com/" class="sbn-auto-link">Reading FC</a> director Ian Wood-Smith.</p>
<p>It remains unclear what route this debt has taken in recent months, as the directors report that revealed the figure covers the financial year that ends June 2014- before the Thai takeover the club in August that relinquished RFC Holdings' undesired control of the club.</p>
<p>The report breaks down the club's finances, as follows:</p>
<p>- RFC Holdings had debts of £18.85 million in 2012-13, that reached £65,450,800 in the last year as it had to reacquire the shares owned by Zingarevich's TSI when their backed out of the club.</p>
<p>- RFC Holdings' losses in the same period grew from over £800,000 to £29.3 million.</p>
<p>- The club owed TSI in excess of £19 million of loans, £1 million of which was paid back last season.</p>
<p>- Staff costs- staggeringly- were as low as £13.6 million, down from <a target="_blank" href="http://www.theguardian.com/football/2014/may/01/premier-league-accounts-club-by-club-david-conn">£46 million</a> in the 2013/13 Premiership season, and <a target="_blank" href="http://swissramble.blogspot.co.uk/2012/06/reading-fc-dear-prudence.html">£29 million</a> on the promotion season of 2011/12.</p>
<p>The report always reveals that <i>since</i> June 30th £1.35 million was spent on purchasing players, with £5.5 million recouped on sales- that of Alex McCarthy and Sean Morrison.</p>
<p>****</p>
<p>Plenty of questions remain. How can the total wages of last season amount to £13 million- below even our 2006 figures (£22 million)?</p>
<p>One possible answer could be that those figures only include the wages paid once the holding company was the majority shareholder. Anton handed back his shares in January, so that £13m would represent only around five months wages making the yearly figure a more realistic £30m or so (in line with the £26m we spent during the 2011/12 season).</p>
<p>The rest of the debt also presumably includes the <a target="_blank" href="http://www.getreading.co.uk/sport/football/football-news/reading-fc-takeover-offshore-loan-7248949">offshore loans to Vibrac</a> but questions still remain as to how, if at all, have the Thai consortium changed things?</p>
<p>As usual the Reading Supporters' Trust (STAR) will be giving the finances a review over the coming weeks, <a href="https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CCEQFjAA&url=http%3A%2F%2Fstar-reading.org%2Findex.php%2Fdownload_file%2Fview%2F564%2F74%2F&ei=OnWIVOHMBcTP7gaHn4DoBA&usg=AFQjCNG6JRC4ElBKFWRnVjhwDc-ea-njwQ&sig2=As8uHIj45ft-yEVpaAj88g&bvm=bv.81456516,d.ZGU" target="_blank">as they have done in previous years</a> - a report which always helps clear things up, so we'll keep a keen eye out for that one.</p>
<p>Meanwhile as ever, The Tilehurst End will be providing plenty of analysis on the club's finances in the coming days and weeks.</p>
https://thetilehurstend.sbnation.com/2014/12/10/7367347/former-reading-fc-owners-report-record-debtThe Tilehurst End News Desk2014-12-08T13:16:52+00:002014-12-08T13:16:52+00:00Royals Have Funds To Sign Murray
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<p>Good transfer news for the Royals as Hammond suggests Reading could move for Glenn Murray in January. </p> <p>Following on from <a href="http://www.getreading.co.uk/sport/football/football-news/reading-fc-fans-warned-expect-8225688">last week's interview with Charles Watts</a>, Reading Director of Football Nick Hammond <a href="http://www.bbc.co.uk/sport/0/football/30379729">has today confirmed to the BBC</a> that Reading have sufficient funds to sign Glenn Murray on a permanent basis in January. The striker's loan deal, under which he came to the Royals from Premier League side Crystal Palace, is set to expire at the beginning of January 2015, but it is believed that Reading have the option to sign him for a set fee at that point.</p>
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<p><a href="https://twitter.com/hashtag/readingfc?src=hash">#readingfc</a> Nicky Hammond says funds are available to complete the permanent transfer of on-loan striker Glenn Murray: <a href="http://t.co/XkWEYIIhhE">http://t.co/XkWEYIIhhE</a></p>
— Nabil Hassan (@NabilHassan79) <a href="https://twitter.com/NabilHassan79/status/541931472522072065">December 8, 2014</a>
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<p>Concerns have recently been raised over a potential lack of cash available to Nigel Adkins in January, with Hammond saying that the club is keen to stay within Financial Fair Play limits for the 2014/15 season. Last week, we brought you news that <a href="http://thetilehurstend.sbnation.com/2014/12/4/7331789/hammond-speaks-out-on-ffp/in/6931926" style="background-color: #ffffff;">funding was tight for the rest of the season in order to prevent the Royals from incuring a FFP sanction next year.</a> However, today's news suggests that Reading could actually be active in the January transfer window, with Reading fans keen to see new faces to boost an under-performing squad.</p>
<p>Since arriving on deadline day of the summer 2014 transfer window, <a href="http://www.whoscored.com/Players/21427/Show/Glenn-Murray">Glenn Murray</a> has scored 5 goals for the Royals in 14 appearances. That's hardly prolific form but, as <a href="http://thetilehurstend.sbnation.com/2014/12/7/7346075/reading-v-bolton-player-ratings">Bucks mentioned in his player ratings for Bolton</a>, the 31-year old has been short on supply in his time at the club.</p>
<p>In mid-October, <a href="http://thetilehurstend.sbnation.com/2014/10/15/6981135/reading-fc-glenn-murray-crystal-palace-transfer-latest">76% of you said that you wanted Murray to sign on a permanent basis in January</a>. Looking at the tight financial situation at the club and his arguably poor form, what do you think of that same question now?</p>
https://thetilehurstend.sbnation.com/2014/12/8/7352505/royals-have-funds-to-sign-murrayThe Tilehurst End News Desk2014-12-04T15:55:01+00:002014-12-04T15:55:01+00:00Hammond FFP Interview: What He Really Meant
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<p>GetReading reporter Charles Watts has once again come up with the goods in his <a href="http://www.getreading.co.uk/sport/football/football-news/reading-fc-fans-warned-expect-8225688"><strong>must read interview</strong></a> with Reading's director of football Nicky Hammond on what the Football League's Financial Fair Play rules could mean for the Royals. @WilliamOwain analyses the interview and picks out the most important quotes, and what Hammond really meant.</p> <p><b>CW - FFP is quite a confusing subject for people who don’t know too much about it, can you clear it up a bit?</b></p>
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<p>We have posted [the 2013/2014] accounts and we believe that met the financial fair play criteria, therefore come January we should be in a position to be free to trade if we wish to do so.</p>
<p>Where we find ourselves now though is that we are in the 2014/15 season. We know what our liability is in terms of transfer fees, in terms of wage bill and for this coming season we will have to post our accounts in November 2015. And that’s where we are very, very tight.</p>
<p>So to go and spend significant money this coming January will potentially take us beyond where we need to be in terms of financial fair play and therefore in the future it may leave <a href="http://www.sbnation.com/us-open-tennis" class="sbn-auto-link">us open</a> to a transfer embargo or a potential fine.</p>
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<p>We (should) have passed the 2013/2014 FFP rules, just! Without selling <span>Adam Le Fondre</span> the club would have likely failed foul of the rules for last season.</p>
<p>The wage bill is still too high despite us losing Wayne Bridge, Kaspars Gorkss, Jobi McAnuff, Alex McCarthy, Sean Morrison, Mikele Leigertwood and Stuart Taylor. That tells you that a huge proportion of the money spent on wages must be going on only a few players who are still at the club.</p>
<p>Even the (first instalments from the) sales of McCarthy and Morrison have left things very tight for this season. Any significant spending in January would mean we would break the rules, so don't expect much activity.</p>
<p>...</p>
<p><b>So although it seems like you have passed FFP for the 2013/14 season and you can spend money in January, basically what you are saying is if you did spend money then it would push you over the limit for 2014/15?</b></p>
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<p>Correct. We find ourselves in a very tight position in regards to FFP.<br><br>And the message that I've been given very clearly, and rightly in my opinion, is that we are not going to break FFP because there are sanctions that come with that. Transfer embargoes and potential fines. The new owners are not going to go down that road.</p>
<p>There is some flex in terms of bringing players in, but not a lot.</p>
<p>That’s why for me, getting our young players the experience this year of 20/30 games at this level, is key.<br><br>We will definitely reap the dividends of that down the line, without a shadow of a doubt. As we did with Karacan, Robson-Kanu, etc.</p>
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<p>Pure and simple. The new owners do not want to break FFP and neither Hammond, or Adkins, want to upset their bosses. If that means no signings in January, then there will be no signings in January.</p>
<p>Hammond's comments about young players being bedded in, may mean that the new owners see this as a season of transition. Adkins must be relieved.</p>
<p>...</p>
<p><b>So what are the changes that will come into effect soon in terms of FFP?</b></p>
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<p>My understanding is that they will be at a higher level than they are currently.<br><br>Take that and put it against the changes we will hopefully make in the summer in terms of the squad, we have players out of contract so there will be a reduction in the wage bill.<br><br>Then we will have a much better opportunity to change things.</p>
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<p>The club believe that the <a href="http://thetilehurstend.sbnation.com/2014/11/6/7167609/championship-clubs-agree-new-financial-fair-play-rules/in/6931926">rule changes agreed last month</a> will give clubs more flexibility next season.</p>
<p>With eleven players out of contract next summer, there is a real chance to rebuild the squad properly, rather than doing a patchwork job in January that could also land the club in trouble. The players out of contract next summer should be worried for their futures!</p>
<p>...</p>
<p><b>You talked about player contracts. There are obviously still some tough decisions to be made.</b></p>
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<p>There are, of course. All of that sits within the FFP discussion.<br><br>Do you renew? Or do you let that those contracts run? Those are decisions as a football club you have to make.<br><br>It’s more difficult now because FFP has restricted us in that respect.<br><br>In my opinion those are discussions for after January because at the moment we are not where we want to be in terms of our league position.</p>
<p>We have an option on <span>Chris Gunter</span> for a further year, as we do with <span>Jem Karacan</span>.<br><br>That means we can extend their current contract.</p>
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<p>Not surprisingly, Hammond is basically saying that none of the senior players out of contract have shown anything this season to justify being offered new deals. I don't think many fans will disagree.</p>
<p>Announcing that the club have an option on Gunter and Karacan could also be a warning to any clubs interested in the duo. If the club want them to stay then they can trigger the extension regardless of any offers from rival clubs.</p>
<p>The fact they haven't, may suggest they're hoping to entice the players to sign longer deals but on reduced terms.</p>
<p>...</p>
<p><b>The Zingarevich contracts get a lot of headlines, <span>Pavel Pogrebnyak</span>, Royston Drenthe. You talk about the wage bill, those two take up a hefty chunk of it.</b></p>
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<p>I think what we all agree on is that over the last couple of years we’ve done some contracts here that we wouldn’t have done previously.<br><br>There’s a fall out from that and that's something we have to deal with in a pragmatic and realistic way.</p>
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<p>They were deals agreed by Zingarevich, and we're stuck with them.</p>
<p>...</p>
<p><b>It sounds to me then like there could be quite big turnaround in players this summer then who are out of contract.</b></p>
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<p>I’m not saying that for a moment. Don't get me wrong, we've got some good players who are out of contract here in the summer and we have to look at that, we have to find a balance.</p>
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<p>There's a reason only <span>Garath McCleary</span> has been given a new contract. Can you read the Tilehurst End's <a href="http://thetilehurstend.sbnation.com/2014/12/4/7312861/tilehurst-end-debate-to-renew-or-not-to-renew-part-two">articles listing the players out of contract</a> and tell me that you would be rushing to give any of those players new deals?</p>
<p>...</p>
<p><b>The one player who has signed a new contract, Garath McCleary, had a lot of interest in the summer. You haven't just given him a new contract so you can sell him at a higher price have you?</b></p>
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<p>No. Garath McCleary has signed a new contract because he wants to be at Reading Football Club. That's the number one reason.<br><br>We signed him on a new contract because we don't want our best players potentially walking out the door on a free.</p>
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<p>He was the only player out of contract who clubs were interested in and could have got a better offer than one from us. So they gave him a pay rise.</p>
<p>McCleary could have waited for better offers so his new contract must be a good one.</p>
<p>This is a massive hint that we will spend money, but only on players who justify it, and on deals that allow us to keep within FFP.</p>
<p>Hammond is also again suggesting that the club are not worried that any of the other players out of contract will get better offers elsewhere.</p>
<p>Maybe the club has learnt from 2012/2013, when it gave Shaun Cummings a new contract in December, despite it being likely if he moved away from the Royals it would be a step down, and there being sufficient doubts about him that they signed Stephen Kelly a month later.</p>
<p>...</p>
<p><b>So just to be clear, you are not saying you definitely won’t spend money in January because of FFP, but you are saying it might be difficult?</b></p>
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<p>What I’m saying is that we have very limited scope because of the wage bill that we carried forward from the last couple of years.</p>
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<p>What he's saying is don't expect much, if anything to happen. The club want to wait till the summer when they can get rid of (lots of) expensive dead wood.</p>
<p>This maybe suggests that after a few years of reduced transfer activity, summer 2015 could be an interesting one for the Royals. It's hard to disagree with Hammond's view that it makes sense to lose unwanted high earners before bringing in new players.</p>
<p>...</p>
<p><b>On Glenn Murray. Could someone still come in and still gazump you?</b></p>
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<p>Someone can always offer more money. The key is the player and where he wants to go.</p>
<p>We have an option to buy, but at the same token Palace may convince the player to stay there, or someone else may come in for him. I know there is a degree of interest in Glenn.<br><br>So there is still a bit of work to be done to determine what will happen with him.<br><br>But I think for sure if we want to move forward with that deal in January, then the provision is there to do it.</p>
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<p>To me this reads that the club are unsure on whether they want to spend a lot of money on Murray, and don't know if he even wants to stay.</p>
<p>Other clubs, though, may may make the decision for both parties. And that may suit both the club and Murray.</p>
<p>...................</p>
<p><i>What did you make of the interview? Are you worried at the prospect of little transfer activity in January? Or does it seem the club are back on track? Let us know your thoughts below...</i></p>
https://thetilehurstend.sbnation.com/2014/12/4/7331797/nicky-hammond-financial-fair-play-interview-what-he-really-meantWilliamOwain2014-12-04T11:44:15+00:002014-12-04T11:44:15+00:00Hammond Speaks Out On FFP
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<p>Earlier we brought you news that Reading could be in a tricky situation going into the January transfer window as worries surrounding Financial Fair Play loom over the club. Since then, Director of Football Nick Hammond has spoken at greater lengths about what this could mean for the club. </p> <p><a href="http://www.getreading.co.uk/sport/football/football-news/reading-fc-fans-warned-expect-8225688">Speaking to Charles Watts of the Reading Post</a>, Director of Football Nick Hammond has given supporters a mixed view of the club's finances covering the last couple of seasons. He believes that, with regards to the 2013/14 season, Reading have operated sufficiently within the rules that FFP regulations should be satisfied.</p>
<p>However, the point of concern regards spending throughout the rest of this season. Having to post accounts for 2014/15 in November of next year, the club is under pressure to keep those accounts within the rules in order to avoid any restrictions being imposed by the Football League, such as a fine or transfer ban. Hammond believes that the finances for this season are 'very, very tight', meaning that there is little wiggle-room for the club to invest in January.</p>
<p>On another front, some big players at the club are out of contract this summer, meaning that tough decisions will have to be taken going forward. With that in mind, Hammond says that contract renewal negotiations are due to take place after January, with the futures of the likes of Adam Federici, Chris Gunter, Jem Karacan, Danny Guthrie, Alex Pearce and others up in the air.</p>
<p>On that front, the editorial team at the Tilehurst End recently sat down to work out which players deserve a contract renewal, and who does not. You can find <a href="http://thetilehurstend.sbnation.com/2014/12/3/7296993/tilehurst-end-debate-to-renew-or-not-to-renew-part-one">part one of that here,</a> and <a href="http://thetilehurstend.sbnation.com/2014/12/4/7312861/tilehurst-end-debate-to-renew-or-not-to-renew-part-two">the second part here.</a></p>
<p>For the full interview with Nick Hammond courtesy of Charles Watts, make sure to check out <a href="http://www.getreading.co.uk/sport/football/football-news/reading-fc-fans-warned-expect-8225688">the original article here</a>, where the Director of Football goes into much more detail.</p>
<p><a href="http://thetilehurstend.sbnation.com/2014/12/3/7296993/tilehurst-end-debate-to-renew-or-not-to-renew-part-one"> <br></a></p>
https://thetilehurstend.sbnation.com/2014/12/4/7331789/hammond-speaks-out-on-ffpThe Tilehurst End News Desk2014-12-04T08:56:07+00:002014-12-04T08:56:07+00:00Royals To Suffer from FFP?
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<p>The financial saga that has afflicted Reading for well over a year now is still in full swing. Worries over financial conduct rules are the latest chapter in a book Royals fans wished they could have thrown on the fire a long time ago... </p> <p><i>Sincere apologies on the behalf of the Tilehurst End for all those who find the image of Chris Samuelson at the Madejski Stadium unsettling. </i></p>
<p>A little while ago, with changes being made to Financial Fair Play by the Football League, it <a href="http://thetilehurstend.sbnation.com/2014/11/6/7166673/could-reading-fc-avoid-a-transfer-ban/in/6931926">emerged that Reading</a> could potentially be in for a rude awakening. Unfortunately, the news Reading fans were dreading appears to be coming true, with the club expecting to be affected in the next <a class="sbn-auto-link" href="http://www.sbnation.com/transfer-rumors">transfer window</a> because of Financial Fair Play.</p>
<p>As Charles Watts of the Reading Post reports, finances for this season (2014/15) are seen as 'borderline', leaving Reading with very little room to spend in the upcoming months, for fear of falling foul of the rules.</p>
<p>This is thought to have been caused by wage deals agreed by the previous owners - such is the nature of lucrative salaries that they can be very expensive over an extended period, and hard to get out of.</p>
<p>Players such as <span>Royston Drenthe</span> and <span>Pavel Pogrebnyak</span> spring to mind, with the latter being <a href="http://thetilehurstend.sbnation.com/2014/10/27/7078135/pogrebnyak-happy-to-see-out-his-reading-fc-contract">quoted earlier in the season, saying that he is on 'not low wages'.</a> Reading don't seem close to being rid of the clutches of the old order that so nearly dragged the club into oblivion.</p>
<p>That said, it's not completely bad news for the club. Finances for last season (2013/14) are thought to not be too much of a problem, and arrivals are possible in January - although any significant spending is likely to have to be funded by extra income, i.e. player sales.</p>
<p><a style="background-color: #ffffff;" href="http://thetilehurstend.sbnation.com/2014/11/6/7167885/financial-fair-play-all-we-know"></a><span></span></p>
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<p>Interesting stuff coming upon terms of <a href="https://twitter.com/hashtag/ReadingFC?src=hash">#ReadingFC</a> and financial fair play. Club thinks it's ok in terms of 2013/14 accounts.</p>
— Charles Watts (@charles_watts) <a href="https://twitter.com/charles_watts/status/540207494975750144">December 3, 2014</a>
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<p>But looking further ahead, they are borderline in terms of 2014/15 season. Any significant spend this Jan would push them over. <a href="https://twitter.com/hashtag/readingfc?src=hash">#readingfc</a></p>
— Charles Watts (@charles_watts) <a href="https://twitter.com/charles_watts/status/540207816213291009">December 3, 2014</a>
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<p>So basically, don't be expecting much to happen in terms of signings in January. Unless players are sold first. <a href="https://twitter.com/hashtag/readingfc?src=hash">#readingfc</a></p>
— Charles Watts (@charles_watts) <a href="https://twitter.com/charles_watts/status/540208114604457984">December 3, 2014</a>
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<p>And the Thais have made it clear that the club will operate within the FFP guidelines. <a href="https://twitter.com/hashtag/readingfc?src=hash">#readingfc</a></p>
— Charles Watts (@charles_watts) <a href="https://twitter.com/charles_watts/status/540208337858879488">December 3, 2014</a>
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<p>Also difficult decisions will need to be made in terms of players who are out of contract. No talks planned until after January <a href="https://twitter.com/hashtag/readingfc?src=hash">#readingfc</a></p>
— Charles Watts (@charles_watts) <a href="https://twitter.com/charles_watts/status/540209000684716033">December 3, 2014</a>
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<p>There is scope for Murray to sign on a permanent basis in Jan. But not much else. <a href="https://twitter.com/hashtag/readingfc?src=hash">#readingfc</a></p>
— Charles Watts (@charles_watts) <a href="https://twitter.com/charles_watts/status/540210198464724992">December 3, 2014</a>
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<p>Basically this is all down to the wage bill which has been carried forward from the previous regime. It continues to hurt <a href="https://twitter.com/hashtag/readingfc?src=hash">#readingfc</a></p>
— Charles Watts (@charles_watts) <a href="https://twitter.com/charles_watts/status/540212002124476418">December 3, 2014</a>
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<p>For more info on the Financial Fair Play developments earlier in the season, <a style="background-color: #ffffff;" href="http://thetilehurstend.sbnation.com/2014/11/6/7167885/financial-fair-play-all-we-know">you can check out our topic stream for it right here.</a> Stay tuned to the Tilehurst End for all the latest as it happens.</p>
https://thetilehurstend.sbnation.com/2014/12/4/7328695/reading-fc-to-suffer-from-ffpThe Tilehurst End News Desk