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Venky's Financial Arrangements


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#41 Bryan

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Posted 04 May 2012 - 14:40 PM

Or maybe they for almost the first time being truthful when they say that they are not looking to sell.

Do they realise if they carry on running the club in this manner it will suffer at least one more relegation?
Sir! With respect, you can stick the money up your #### that's all I can offer you sir.

#42 perthblue02

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Posted 04 May 2012 - 14:44 PM

Did they not use the "Money is difficult to get out of India " line when something needed paying? So would make sense to move all cash there especially in transfer windows - Ready made excuse for missing out on signing all the stars of Euro 2012 that we will be going in for.
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#43 rovers11

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Posted 04 May 2012 - 14:49 PM

It would be a strange move to make if they were desperate to dispose of the club. Presumably they'd be happy enough to tolerate Barclays for a bit longer while they found a bidder.

Seems like a lot of trouble to be going to for an asset they want rid of. And if interest rates are more punitive in India, where is the sense in it, if they're keen to run us on the tick?

It's really not making any sense whatsoever, and you have to suspect that something is not quite right about this arrangement.


They have to put procedures in place in case they cannot sell the club. I don't believe for one minute that Venky's genuinely want to keep the club if relegated. However, if they are not willing to budge on their 30m price tag then they will have no choice.

#44 Mercerman

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Posted 04 May 2012 - 14:59 PM

It would be a strange move to make if they were desperate to dispose of the club. Presumably they'd be happy enough to tolerate Barclays for a bit longer while they found a bidder.

Seems like a lot of trouble to be going to for an asset they want rid of. And if interest rates are more punitive in India, where is the sense in it, if they're keen to run us on the tick?

It's really not making any sense whatsoever, and you have to suspect that something is not quite right about this arrangement.


Spot on - IMO, it doesn't feel right, especially given some of the decisions we have seen made since Venky's bought the club.

There are a number of possible scenarios ranging from the good to the not so good.

I have already flagged the complexities that could be involved with such an arrangement.

I have always maintained that, IMO, Venky's would not exit Rovers with a financial loss.

Oh what a tangled web this might be. Equally, there might be justifiable reasons for this action - I hope that this is the case.

The lack of communication or transparency from Rovers, which has been the case ever since Venky's assumed ownership, does not alleviate any worries.

Edited by Mercerman, 04 May 2012 - 15:21 PM.


#45 PAFELL

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Posted 04 May 2012 - 15:34 PM

They have to put procedures in place in case they cannot sell the club. I don't believe for one minute that Venky's genuinely want to keep the club if relegated. However, if they are not willing to budge on their 30m price tag then they will have no choice.

With the money all in india, would it be easier for due dillegence to be carried out if they are planning on selling.
VENKYS OUT

#46 den

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Posted 04 May 2012 - 15:44 PM

The only reason I can think for them wanting no debt, is to sell the club. Using player sales to do this simply means they don't have to use their own money to do it.

Most, if not all PL clubs use debt. It's a better idea to have a small debt in order to maintain PL existence, than reduce ot to nil, while watching us relegated. John Williams and the trustees were quite content with a small amount of debt.

Edited by den, 04 May 2012 - 15:45 PM.

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Rovers v Middesborough F. A. Cup 5th round. Sat 5th of Feb, 1962. Att, 33,714.

Else! Taylor Newton, Clayton Woods McGrath, Douglas Lawther Pickering Byrom Ratcliffe.

We won 2-1 ( Pickering, Lawther ) setting up an away tie at Fulham in the next round. We drew that 2-2. Before the replay the draw had paired us with our old friends Burnley in the semi finals.
Typically Rovers, we played kean in the replay and lost 1-0 in front of another 33,000 crowd ! of our five forwards four were actually born in the town of Blackburn ! Now that will never happen again.

#47 philipl

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Posted 04 May 2012 - 15:49 PM

With the money all in india, would it be easier for due dillegence to be carried out if they are planning on selling.


Much much more difficult.

A company continues in existance from one owner to another. Therefore if a new owner buys Rovers from Venky's and let's say for argument's sake, there was match fixing going on in the past, the new owner cannot reasonably expect to succeed in pleading "let Rovers off because it happened before I bought the club". Rovers are a separate legal entity and as such is expected to observe laws and regulations and can face the consequences as a body corporate for not doing.

Due diligence is the means by which a new owner makes sure there is nothing in the continuing company that can cause problems later which they are unaware of at the time of buying. If all the documentation and evidence is in the UK, it is a challenging enough exercise. Having a Bank in India means inevitably that primary records relating to Rovers are now in India.

If a British Bank is negligent in its representations to a new owner, the Courts in England are the place to go to including receiving summary injunctions within hours if required. Try doing that in Rajasthan.

#48 AllRoverAsia

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Posted 04 May 2012 - 15:59 PM

Venkys fall out with Barclays who want debt reduced/controlled so Venky's turn to people they already know in India. Also State Bank of India have a well established UK banking operation with HO in London and branches throughout London, Midlands and one in Manchester. SBI can easily arrange charges on Rovers UK assets if required and handle Rovers UK daily banking needs. Keep it all in the 'family' so to speak.

Edited by AllRoverAsia, 04 May 2012 - 16:01 PM.

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#49 patrickvalery

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Posted 04 May 2012 - 16:17 PM

The lack of communication or transparency from Rovers, which has been the case ever since Venky's assumed ownership, does not alleviate any worries.


While i absolutely agree with your point about lack of communication, i don't ever recall hearing much from the Trust in terms of financial transparency. I do recall hearing how we had a very good relationship with Barclays. But i always assumed this was because they were making a few quid from the club.

I despise everything Venky's have done and their very presence at Rovers. But i have to say, this move, although maybe not obviously beneficial to the club, does indicate some degree of interest on their part. I'm not for one second saying thats much to shout about. But they are doing something more than the usual nothing. It would indicate a level of interest in the club which we aren't used to.

I'll be honest, i'm confused. I feel like i'm a dog which has been beaten for a few years. Then one morning my owner gets up and pats me on the head. There will almost certainly be another whack in the chops coming my way, but maybe not until later in the day than usual.
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#50 True Blue & White

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Posted 04 May 2012 - 16:33 PM

Venky's Financial Arrangements

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If Rovers are Venky's 'baby' then Balaji, Venkatesh and Mrs Desai must be our Steven Barker, Jason Owen and Tracey Connelly.

#51 Baz

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Posted 04 May 2012 - 17:01 PM

Is there any proof on these points:

Our banking is now with the State Bank of India, and held in India (as opposed to one of their UK branches)?

The debt previously payable to Barclays has been paid off, and not just transferred to the state bank of India?
'Germany are a very difficult team to play...they had 11 internationals out there today.' - Steve Lomas

#52 philipl

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Posted 04 May 2012 - 17:05 PM

Is there any proof on these points:

Our banking is now with the State Bank of India, and held in India (as opposed to one of their UK branches)?

The debt previously payable to Barclays has been paid off, and not just transferred to the state bank of India?


Payslips issued to Rovers staff showed a branch name in Rajasthan

The Barclays debt has definitively NOT been paid off. The mortgages to the favour of Barclays remain in place.

#53 ABBEY

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Posted 04 May 2012 - 17:11 PM

Surely good news for us, as its now secured against them, rather than just a sub company which is effectively Rovers only?

Is this not glimmer of hope they plan to make a success of it?

There's no good news with these awful scumbags in charge

I GET SLAGGED FOR BEING NEGATIVE...WHAT DOES THIS MAKE THE ONES WHO ARE HAPPY WE GOT KNOCKED OUT BY SCUNTHORPE OR THE ONES WHO THINK WE SHOULD NOT BE BEATING CARDIFF AT HOME OR THE NON STOP ROBBO BASHERS? AT LEAST MY HATE IS TARGETED AWAY FROM THE TEAM!!!! AND NOW WORST OF ALL SCOTCH ROVER WANTS FORGIVENESS AND USES DINGLESISMS WANTING THE SCUM TO LIVE FOREVER!


#54 Baz

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Posted 04 May 2012 - 17:13 PM

From what I saw the branch name was not clear enough to ascertain it was in India, I thought it could have been a MAIn bank in the UK (London for SBOI). If the sort code, or IBAN no is showing we could say this with certainty. Having our banking in the UK is surely preferential for Inland Revenue purposes.

As for Barclays I'm assuming that your getting your info from credit records / companies house - are you aware the last time this was updated / how often it is updated? I would presume if it's similar to personal accounts that this would be monthly, If so we can definitely say the debt wasn't repaid after the next / latest update.

Edited by Baz, 04 May 2012 - 17:15 PM.

'Germany are a very difficult team to play...they had 11 internationals out there today.' - Steve Lomas

#55 little_joe50

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Posted 04 May 2012 - 17:37 PM

Indian interest rate (which will be for borrowing rupees) a red herring as may be higher, but borrowings will be translated into sterling, therefore exchange rate factors in the difference in interest rates between the two currencies.

#56 Steve Moss

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Posted 04 May 2012 - 18:52 PM

Did they not use the "Money is difficult to get out of India " line when something needed paying? So would make sense to move all cash there especially in transfer windows - Ready made excuse for missing out on signing all the stars of Euro 2012 that we will be going in for.

Perhaps using an Indian bank with offices in England and India, secured by assets both in India and England is their method of getting money into the club? One account in pounds and another in ruppees, depending on what bills are being paid with conversions whenever the exchange rate is favorable?

VVenkys banking choices might be prudent and in the Rovers best interest

Edited by Steve Moss, 04 May 2012 - 18:53 PM.

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#57 chaddyrovers

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Posted 04 May 2012 - 19:19 PM

didn't know where to post this so will put it here

Venky's 'have abided by rules', says Premier League chief

http://www.lancashir..._chief/?ref=twt

#58 bob fleming

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Posted 04 May 2012 - 19:47 PM

didn't know where to post this so will put it here

Venky's 'have abided by rules', says Premier League chief

http://www.lancashir..._chief/?ref=twt

“Are they law-abiding people who are putting their money in? Yes they are.

“The decisions they take is entirely their concern.

“They (Venky’s) do have dialogue.’’

FFS. And the interview ended. No recourse? Nothing? Inept on both sides of the fence.

(Please don't use that word again) this for a game of soldiers. See you Monday.

#59 Mercerman

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Posted 04 May 2012 - 22:13 PM

Edit

Edited by Mercerman, 04 May 2012 - 22:14 PM.


#60 47er

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Posted 04 May 2012 - 22:16 PM

While i absolutely agree with your point about lack of communication, i don't ever recall hearing much from the Trust in terms of financial transparency. I do recall hearing how we had a very good relationship with Barclays. But i always assumed this was because they were making a few quid from the club.

I despise everything Venky's have done and their very presence at Rovers. But i have to say, this move, although maybe not obviously beneficial to the club, does indicate some degree of interest on their part. I'm not for one second saying thats much to shout about. But they are doing something more than the usual nothing. It would indicate a level of interest in the club which we aren't used to.

I'll be honest, i'm confused. I feel like i'm a dog which has been beaten for a few years. Then one morning my owner gets up and pats me on the head. There will almost certainly be another whack in the chops coming my way, but maybe not until later in the day than usual.


Don't worry--it'll be their own interests they are protecting.




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