Reading have announced heavy losses of £5.37million for the last financial year as the Premier League "parachute payments" finished. Accounts show a £6.8million change of fortune for the Royals after they post a £1.4 million profit in 2010, mainly courtesy of the "parachute payment" following their relegation from the top flight.
Chairman John Madejski told the Reading Post: "The club didn't receive any parachute payment from the Premier League, meaning a £12million deficit in revenue year on year.
"Despite that fall in revenue, costs remained at the same level.
"Our budget was set with the intention of supporting the costs of the playing squad through player trading, and we did so primarily with the sale of Gylfi Sigurdsson to Hoffenheim."
