The demise of Reading FC

[silent majority]

It just goes to show how quickly things can go wrong;

http://www.getreading.co.uk/sport/football/football-news/reading-fc-chief-nigel-howe-8672890

Royals were taken to the brink of administration following the ill-fated reign of its former Russian owner

Nigel Howe has revealed details of former owner Anton Zingarevich's reckless spending which sent Reading sliding towards administration.
Despite enjoying the 2012/13 season in the Premier League under Zingarevich’s stewardship, Royals found themselves in a crippling cash crisis following relegation which came to a head last summer.

With debts spiralling, star striker Adam Le Fondre had to be sold just to pay a tax bill.

It was a scenario which left fans stunned. How had things got this bad? Where had the money gone?
Chief executive Howe has now moved to shed some light on the matter.

He said: “When Anton came in he and his advisors said to me, what do we need to go up? I said we need a striker, a left-back. That’s going to cost you £3.5 million probably, something like that in terms of cost and salary.
“But he had already put on loads more costs. Say our budget was to lose £5m, he’s already said we’re going to lose £15m because I’m going to cover that. Don’t you worry, dad will give me a cheque.
“But when it came to the crunch, he said to me, sorry I can’t give you a cheque. What I want you to do is go and borrow some money against our future parachute payments.”

Howe added: "That money has to be paid back. It’s not like one of these beg, steal and borrow places you can go. It’s got to be paid back.
“So if you watch the cash flow curve, you suddenly get to the point where you have to pay that back, but I’ve already had the money and I’ve spent it.
“And Anton kept spending. In comes Royston Drenthe, in comes Danny Williams, in comes some really high earning players.
“It doesn’t take long to get that massively out of kilter compared to your income, never mind the parachute. That’s already gone.
“We just went ahead of ourselves.”
Behind the scenes, Royals are still struggling to come to terms with the damage which was done financially during the Zingarevich era.
The new Thai owners have come in and steadied the ship, but the wage bill remains a problem which the club are trying to manage.
Several high earning players see their deals run out at the end of this season, however, and Howe believes things will get easier come the summer.

“That’s exactly how I look at it,” he said. “Every day I come in and sit behind my desk and it’s a bit like paying off the VISA card.
“I’m a little bit further through it. Another six months I might have paid it off. That’s exactly how I look at it.
“Can I see the light at the end of the tunnel? I’ve got to get through this summer first and I want to reshape the squad. There’s a lot of work to do.”

He added: “We never wanted to go away from the ‘Reading way’. When Anton originally came in that was his view.
“And then, bless his cotton socks, he probably had a chat with his dad who might have said, don’t you worry son, I’ll sort you out.
“Or he thought I know what I’m going to do, I’ve got a load of chums in Moscow and they're all going to dosh in £5m each. But it didn’t happen for him.

“I don’t know what was in his mind. All I could do was sit here thinking, you’ve just piled a bit more debt on us.”

[GazLaz]

They will go back up next year. They've got a classy manager now.

[IDM]

Yet another cautionary tale to be aware of the "invest at all costs" attitude that some folks have...

[Filo]

Some one buying a club, promising the world and then not having the money in the first place, never!

[1879Rovers]

They were such a well run club under sir John Madejski and he then moved over and sold the club. It is often better the devil you know.

[Chris Black come back]

Hard to have any sympathy really when we ALWAYS get beaten by them especially in their faceless, plastic stadium miles from anywhere full of their faceless, plastic fans.

[DonnyBazR0ver]

Madejski needed to sell. He committed a vast amount of his personal wealth in to the club over the years and he said he'd reached a point where he couldn't sustain it. He was on a programme a few months ago and he looked a tired man.

[Dagenham Rover]

Madejski needed to sell. He committed a vast amount of his personal wealth in to the club over the years and he said he'd reached a point where he couldn't sustain it. He was on a programme a few months ago and he looked a tired man.

hmnnnn

[The Red Baron]

Madejski needed to sell. He committed a vast amount of his personal wealth in to the club over the years and he said he'd reached a point where he couldn't sustain it. He was on a programme a few months ago and he looked a tired man.

Sounds familiar?

[BobG]

Aye. But Madjeski recognised the writing on the wall and did something sensible as a result....

BobG

[Chris Black come back]

Madjeski not fit to wipe the boots of JR.

[sheffield exile1]

sure the word DEMISE would mean a lot more to Stockport and Darlington. Reading in the 70's (was there in i think 76 when we beat them away), small 3rd/4th tier team like us. Nouveau Riche aka Wigan and beginning with Blackburn, buy into the Prem and buy BIG success due to capitalists play thing....mmmmm. Am unsure but are Bournemouth in that position?

[BobG]

You what Chris??? What planet are you on? Despite Sheffield Exiles perfectly legitimate gripe about buying success, John Madjeski has delivered years and years more 'success' than JR, at a higher level and with a bigger new ground. He also didn't try to wreck what he built as he was leaving either. Exactly what haws JR done to make you make that statement?

And before anyone moans, I am NOT having a pop at JR here. All of us know full well that without him we would not be here today and we would not have had 10 years of fun and success. But none of that warrants your statement as far as I can see.

And Sheffield: I think Bournemouth are owned by an East European with quite large ambitions and pockets.

BobG

[Sammy Chung was King]

He has been great for Reading just like JR has been for us, they have always produced a lot of quality youth and bought very well, give me a local businessman over foreign ownership almost every time.

[wilts rover]

Thames Valley Royals anyone?

[Glyn_Wigley]

Thames Valley Royals anyone?

Tnat was Robert Maxwell's brainwave when he owned Oxford, and was nothing to do with anybody at Reading at all.

[sheffield exile1]

i think as well while we are on the subject corruption comes into play. Reynolds was found out as a crook, and got what Richardson did. I need to be care ful about Stockport as I don't want to get into legal trouble, but I understand that their "owner" was all Sale Sharks and that reflects on their curent situation. Frank Sinclair was on Fantasy Football talking about Colwyn Bay beating Stockport, Airdrie are now in the Scottish league due to Clydebank's demise. These things happen. However cast your minds back to Cheltenham away when things wren't so rosy and we had a prefectly good goal disallowed and they were top and we were rock bottom in the conference, I think around Christmas time. How many of us today would be watching unibond football if you had to put your hand on your heart? Yes we have had some fantastic years, but when we talk about big money DEMISE lets remember all the years we trekked to Feethams and Edgeley Park and, god forbid, Holker street. Football can't become static I agree but some fans who for years have loyally followed their team as we have. have had a lot to put up with in recent times. through no fault of their own. and may never get back into the league in our life time if at all,

[wilts rover]

Thames Valley Royals anyone?

Tnat was Robert Maxwell's brainwave when he owned Oxford, and was nothing to do with anybody at Reading at all.

You sure about that Glyn?

[Savvy]

Readings demise? They've dropped down a division, its a good job we haven't suffered a similiar fate eh? Oh hang on a minute!!!!!!!!

[Glyn_Wigley]

Thames Valley Royals anyone?

Tnat was Robert Maxwell's brainwave when he owned Oxford, and was nothing to do with anybody at Reading at all.

You sure about that Glyn?

Looks like some of the Reading board at the time were involved with the discussions with Maxwell, but the idea was all Maxwell's.

http://en.wikipedia.org/wiki/Thames_Valley_Royals_proposal

[BobG]

Oh come on Savvy You know prefectly well that is nothing whatever to do with the point that's being made in this thread.

BobG

[wilts rover]

Thames Valley Royals anyone?

Tnat was Robert Maxwell's brainwave when he owned Oxford, and was nothing to do with anybody at Reading at all.

You sure about that Glyn?

Looks like some of the Reading board at the time were involved with the discussions with Maxwell, but the idea was all Maxwell's.

http://en.wikipedia.org/wiki/Thames_Valley_Royals_proposal

Which is a long way from what you first said! It was actually half the board of Reading FC at the time who were willing to sell the club up the Thames and it was only down to the stubborness of the other half, backed by the fans at both clubs, who put a stop to the whole mad idea.

[Savvy]

Oh come on Savvy You know prefectly well that is nothing whatever to do with the point that's being made in this thread.

BobG

So what is the point Bob? A complete nothing story or another attempt at a cheapshot at John Ryan?

[BobG]

I thought the thread is about Reading  being screwed over by a lunatic eastern European. CBCB suggested Madjeski isn't fit to wipe JR's boots. I disagreed. I think Madjeski did more, over a longer period of time and left with dignity and grace at the right time - unlike JR.

Bob

[NorthNorfolkRover]

No JR just left in style

I thought the thread is about Reading  being screwed over by a lunatic eastern European. CBCB suggested Madjeski isn't fit to wipe JR's boots. I disagreed. I think Madjeski did more, over a longer period of time and left with dignity and grace at the right time - unlike JR.

Bob

[BobG]

You're dead right there NNR! I don't think there's anyone else in Yorkshire who could have dreamt up behaviour like that.

BobG

[ditch_drfc]

This whole "let's have digs at JR in every thread" job is even more tiresome than the SOD-Saunders debacle

[BobG]

It wasn't a dig. Read reply 12 above. The point is tghat an unwarrantable claim was made which I challenged by reviewing the situation. Digs had f all to do with it. If you read this forum at all sensibly Ditch you will know I regularly acknowwledge the debt that every single one of us owes to JR. Just for you, if it was not for JR we would not have a Rovers to support. Clear? But that still does not make CBCB's point accurate and neither does it make my post above a dig.

BobG

[DRFCSouth]

When did the Reading demise begin? They're in a similar position to where they were 10-12 years ago, just prior to their yo-yoing to and from the premier league. Both Madejski and JR deserve credit. Madejski delivered what is a lovely stadium for Reading, and its too his credit that he still has the clubs best interests at heart.

[Savvy]

What was your first comment about then if it wasn't a dig?

Interesting that you mention Bournemouth, managed by people with ambition and money, whereas we are managed by people with money!