Queens Park Rangers under FA investigation

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The Championship club will be investigated by the Football Association’s Financial Advisory Unit. The FA investigatory unit has responded to a request from the Football League who have allegedly become increasingly concerned recently over the club’s transfer activity and payment of fees to agents despite leaked internal documents suggesting that it is facing financial trouble.

The club only emerged from administration in 2002 after having consolidated their debts and after securing a GBP10m loan against the Loftus Road stadium. According to media reports, the Football League has asked the FA to investigate the ownership and management structure of the club and its parent company. A ‘palace revolution’ at the club’s parent company lead to the appointment of ex-agent Gianni Paladini with the support of Monaco-based Wanlock and Barnaby Holdings who control the club.

Paladini started a libel action against the London Evening Standard newspaper after it printed the report that the FA had singled out the club for investigation by its Financial Advisory Unit. Paladini however, has promised to put any winnings he gets from a libel case straight into the club. The club has told local newspaper that the FA visit was part of a routine review of all Football League clubs completely unrelated to claims that the club had paid agents GBP 473,785 over the last two years.

Paladini claims that the club’s loss per year has been cut from GBP 4.5m to GBP 2m during his period as a director and questions why the club would pay agents when he is one himself. “Why should we pay someone else to that job when I can save the club money by doing it myself?” Paladini also claims the allegations have set back a consolidation of the club’s GBP 10m debt that would cut annual repayments from GBP 1m to GBP 400,000. “I’d done the deal and had all the papers ready to sign and then these allegations appeared in the paper and set everything back,” he said.