QPR lost almost £25m after failed promotion attempt

QPR have reported an annual loss of almost £25m – largely the result of gambling in vain on promotion last season.

The club’s holding company’s audited accounts for the year ended 31 May 2022 show a loss of approximately £24.7m for the 2021-22 season. That is a loss of around £474,000 per week.

The alarming figure represents a steep rise from the £4.1m loss posted for the previous financial year.

It appears to seriously undermine the image Rangers have sought to portray; one of a club that has learned from past financial mistakes and been focused on steady progress and reducing losses.

The smaller loss for the year ended 2021 is largely because of the sale of Ebere Eze to Crystal Palace.

It was initially hoped that sale would herald an era of sustainability, achieved through developing and ultimately selling players for a profit.

However, an excellent run during the second half of the 2020-21 campaign, when QPR, then managed by Mark Warburton, struggled badly before a major upturn, led to a belief that promotion the following year was achievable.

That upturn was largely inspired by the loan signings of Stefan Johansen, Charlie Austin, Sam Field and Jordy de Wijs, who were all signed on permanent deals in the summer of 2021.

Over the course of the year, QPR bought players for £2.8m and sold for just £250,000 during the same period, while wages rose by around 10%.

The club also dismissed enquires about the likes of Ilias Chair in the belief that reaching the Premier League was a realistic ambition.

That approach initially seemed to be vindicated and Rangers were in the thick of the promotion race.

However, a spectacular decline in results led to them sliding down the table and Warburton losing his job.

In short, the gamble did not pay off.

“The increase in losses is mainly due to the decision to retain players and not to be active in player sales in the 21/22 season as the club focused on challenging for a play-off position,” admitted QPR chief executive Lee Hoos.

“For the season 20/21, the club posted a player-trading profit of £17.7m, which resulted in the lower losses that season.”

QPR’s losses continue to be covered by a combination of shares issued to the club’s owners and directors’ loans from them.

Ruben Gnanalingam has been the majority shareholder since Tony Fernandes’ involvement was reduced – he owns just over 51%, while Fernandes and Kamarudin Meranun jointly have a 27% stake.

Meranun stepped down from the board in May last year. American Richard Reilly, who joined the board three months before that, currently has a 12% shareholding.

The Mittal Family – represented by club chairman Amit Bhatia – hold a 10% stake.

Hoos added: “As ever, we are grateful to our shareholders for their continued financial support of the club.”