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[Archived] Venky's Takeover Complete

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philipl World Cup

philipl

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OK let's look at what Mrs Desai has said and this carefully avoids breaking any confidences:

To facilitate the acquisition, VH set up a Venky's London, a new wholly-owned subsidiary. The company has paid a total of £54 million for the buy-out. Providing the break-up, Desai said, “We paid £20 million for the shares of Blackburn Club. A sum of £10 million has been pumped into the club, and another £5 million will be given over the next 15 days.”

“Then we have taken over servicing of a debt of £16 million, while £1 million has to be paid to the Trust that runs the club for each of the next three years.”

So we can read that as being an inadequately worded version of this-

£20m paid to BRFCI on account for Rovers' shares

£ 3m to be paid to BRFCI for Rovers' shares over the next 3 years

£10m paid into the Rovers

£ 5m to be paid into the Rovers in the next 15 days

£16m to repay the overdraft

£54m total.

Before anyone starts spending £15m, remember there was at least £5m in non-interest bearing loans from the Trust in Rovers with maturity dates falling within this season and we do not know how the club's cash flow is looking this year- what was disclosed by the statement about the audited accounts to 30 June 2010 in the circular to shareholders talked about a small operating loss on £57m turnover last season so my guess is the club might have burned through another £2m to £4m of cash since the year end.

So I think we are talking a little over over £5m being available for transfer fees and wages in January and no more than that.

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imy9 World Cup

imy9

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Brother has said in an article that 23 million bought shares and the rest was spent on a loan and stuff- his words not mine. I sense a language issue and words being misinterpreted but even so get your story straight!

I am interested to know how we have burned up to 4 million in five months.

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imy9 World Cup

imy9

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Do we? Aren't a number of the games announced later in the year?Also no one has a crystal ball so we don't know where we will finish at the end of the year....just remembered where did the money go for the additional money for finishing 10th?that's about 2 million!

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JAL World Cup

JAL

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I havve to admit I am baffled by this bit:

“Then we have taken over servicing of a debt of £16 million, while £1 million has to be paid to the Trust that runs the club for each of the next three years.”

That sounds like the debt hasnt been wiped clean just passed onto Venky's to manage.

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Amo World Cup

Amo

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To further illustrate the need for the Rovers and Venky's to co-ordinate their communication strategy, I now have an explanation of what all this means from a Rovers source but as it was given in confidence, I am not at liberty to share it with you.

So why say anything, Phil?

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philipl World Cup

philipl

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To get the point over to Venky's and Rovers that this mismatch in communication between India and Blackburn is not working.

If you are complaining about not knowing, please look at the note I posted at the top of this page. If you are having a go at me for the hell of it- enjoy yourselves.

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ada2020 Uefa Europa League

ada2020

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“Who knows, Blackburn will become a bigger brand than Venky's itself,” she said, and added, “We will do everything in the interest of the team.

Surely the above quote is just as important as the rest?

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philipl World Cup

philipl

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I find this encouraging overall- good that Mrs Desai is committing to an active role:

A new company, called Venky's London Limited (VLL), has been formed for the new venture. VLL is a 100 percent subsidiary of the VH group, she said. A family-owned business, VH is run by Ms. Desai and her two brothers Venky and Balaji Rao.

“Balaji is a bigger football fan. But all three of us will have equal responsibility for the new acquisition,” she said.

Ms. Desai said that this deal will help in promoting football in India. Plans of having football camps with coaches from Blackburn, as well as programmes where children from India will get to train in the club for a short period, are on the anvil. “These programmes will start in the next six months,” she said.

Asked if there were plans of starting a football academy, Ms. Desai said that it was premature to say anything about it now but the VH group would think about it.

No changes

VLL will not make any immediate changes in the team. The change in the coach of the team will also be decided eventually. However, the Blackburn stadium, now called Ewood, will soon be called Venky's Ewood.

Ms. Desai said the previous managers had not built up a brand around the team, and that VLL would leverage the brand more.

“Who knows, Blackburn will become a bigger brand than Venky's itself,” she said, and added, “We will do everything in the interest of the team.”

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philipl World Cup

philipl

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There is quite a bit more in Sunday morning's Indian papers-

Indian Express

Key quotes-

Anuradha Desai, chairperson of Venkateshwara Hatcheries, the new owners of Blackburn Rovers Football Club, strongly expressed the need to change the functioning of the club. “We need to improve the brand Blackburn Rovers. The management thus far has done a good job but has not been proactive enough. We are looking to change that,” she said.

Acquiring jersey sponsors, renaming the stadium, and hunting for co-sponsors in general will be the task at hand for the group as they will be looking to globally widen the market for the club.

“Arsenal named their stadium ‘The Emirates’ after their main sponsors. Our stadium could be called the Venky’s Stadium or could adopt the name of another sponsor. We are looking to spread the name of Blackburn Rovers wherever we can. India is our major target,” she said.

Desai will be looking to increase the popularity of the club among the Indian public by organising some exhibition matches with the Blackburn in India. “We will take a look at their calendar and when it is convenient for them we will arrange exhibition matches in India. We are also looking to start workshops where we fly down coaches of the Blackburn Academy and arrange training sessions for kids in India,” she said.

The club was bought for a 54 million pounds, of which 20 million was paid for shares, 15 million was spent for betterment of the club and 16 million was paid for clearing debts.

One million pounds will be paid to the trust of the Jack Walker settlement - the previous owners - every year for three years. This has, however, left a comparatively small sum of 5 million pounds in the kitty of Sam Allardyce, Manager of the club, from which to buy more players.

Desai, however, stated that the club will be looking to buy a striker in summer and the club is looking at Aston Villa’s John Carew and Liverpool’s David Ngog as their top targets. “According to me, money will not be the driving force that pushes this club up the table. We have the resources but are not using them to their potential. Now that we have given the club a solid support, you will see the change taking place in a couple of months. Having said that we are in the market for a striker”, she said.

Economic Times of India

Business Standard of India

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