QPR facing £50m promotion tax
QUEENS Park Rangers face the likelihood of a fine of around £50m if they achieve promotion back to the Premier League this season unless their financial position suffers a dramatic and unexpected improvement.
The west London football club’s annual losses snowballed from £23m to £65m last season as they spent lavishly in a vain effort to remain in the top flight, it emerged yesterday.
Such monetary haemorrhaging leaves them at risk of failing the Championship’s rules on financial fair play, which limit the amounts that clubs are allowed to lose. For 2013-14 the ceiling is £8m.
If they were to succeed in gaining promotion this season while running up another loss of £65m they would be liable for a so-called fair play tax fine of more than £53m. Should they fail to return to the top division but still lose the same amount Rangers would face a ban on signing players from January 2015.
They could yet avoid the swingeing punishment, if a legal threat to the Football League over the rules succeeds. However, League chief executive Shaun Harvey has promised to “vigorously defend” the measures.
QPR’s losses pushed debt up to £177m, with revenue falling from £64m to £61m and combined wage and social security costs soaring from £59m to £78m.
They spent £44m on new signings, including established internationals such as Brazil goalkeeper Julio Cesar, France forward Loic Remy and former Chelsea defenders Jose Bosingwa and Tal Ben Haim. The club also switched managers, sacking Mark Hughes and hiring former Tottenham boss Harry Redknapp, who has led them to fourth place.