[Archived] Blackburn Rovers balance sheet

[PAFELL]

The hitlab story has been knocking about for a while http://in.reuters.com/article/2011/04/07/idINIndia-56189220110407 http://businessofcinema.com/music/venkys-enters-strategic-alliance-with-akons-hitlabcom/33044

One of balaji's "superstar" buddies Akon is involved in it, and we know Balaji is generous to his mates ask Jerome.

Be interesting to see if any returns from the Hitlab investment find their way to subsidise Rovers running costs

So Venkys london limited don't just own Rovers.

[PAFELL]

Completed expected and the balance sheet has come as a surprise to no one. There is no way we can meet the FFP so I expect us to be 'creative' with our income.

At least the owners seem serious about getting us back to the premier league and are willing to pump serious money in to achieve that. They have wasted a lot though.

Ironically IF rovers were promoted and I know it is a big IF. This whole debt would be wiped out.

With the high earners off the pay roll, so cheaper wages - the losses should be less next year.

Though I doubt if the pay offs are included in these recent figures.

[Paul]

I think we need someone who knows about these things to explain what losses at VLL mean to BRFC. Does this translate to debt against the club or does VLL bear the loss? If it's debt then we'll soon become insolvent won't we?

The Trust are working on this and will give an opinion over the next few days

[oreilly]

if anybody wants the account all you have to do is email andrew@plaltd.co.uk and ask for a copy.

I got them yesterday afternoon

[Parsonblue]

Completed expected and the balance sheet has come as a surprise to no one. There is no way we can meet the FFP so I expect us to be 'creative' with our income.

At least the owners seem serious about getting us back to the premier league and are willing to pump serious money in to achieve that. They have wasted a lot though.

Sadly, as was shown by the performance last night at Leicester, we are some distance away from having a squad that is good enough to get us back into the Premier League. We need some real quality in key positions and with these losses and FFP, I'm not sure how we improve the squad. Free transfers and players out of contract are unlikely to deliver Premier League football on the evidence of what we have seen so far. They will probably keep us in mid-table, hopefully, but to be challenging the likes of Leicester and QPR we will need more than what we have at present.

[Plastic Head]

Jesus...well that's unsustainable with the FFP...I doubt we have saved the majority of that this year as would be needed (though no 8 million purchase of Rhodes will have helped...though if I recall rightly that wasn't all up front and is an ongoing cost of about 2 mill a year?).

Source?

Debt is not relevant to this.Interest on debt is.

[tomphil]

If that's correct, an investment in Hitlab would be one of Venky's better investments, certainly forward thinking and not to the detriment of the club. Unlike so many others over the past couple of years or so.

I also stand by what I previously said with regards to your postings and totally unsolicited from myself, you then spilled your guts without much substance and coraborated my suspicions.

Anyway, I've just had a large Armagnac and bid you goodnight also out of courtesy. i'll keep my thoughts to myself in the meantime.

I'll save the strong coffee for the morning!

(Are you Saxo in disguise?)

Funny thing is when i read your posts the first thing i thought of was calling you saxo I don't know what your suspicions are but there isn't much grounds from them apart from an innocent post that struck a nerve in you. I think it was just the Armagnac talking lol

How's the headache

[Blue blood]

Sadly, as was shown by the performance last night at Leicester, we are some distance away from having a squad that is good enough to get us back into the Premier League. We need some real quality in key positions and with these losses and FFP, I'm not sure how we improve the squad. Free transfers and players out of contract are unlikely to deliver Premier League football on the evidence of what we have seen so far. They will probably keep us in mid-table, hopefully, but to be challenging the likes of Leicester and QPR we will need more than what we have at present.

Spot on, totally agree with everything you say.

To be honest the only way we could improve the squad in our current position - i.e. with no money - is by having an experienced manager who either:

- is a tactical genius who can get that extra out of the players through good tactics/coaching

- be an excellent scout who can spot bargains from nowhere.

I like Bowyer but don't think he's going to do either of these things - so championship football is on the cards for the foreseeable future. Unless these loss - and continued loss - means we have to make even more cut backs financially. If so we could be really stuffed.

[Al]

I'm not confusing them at all. I know exactly what they are, and that they are different things. I don't know necessarily how accounts work for these sort of things, since I assumed accounts are yearly and therefore about the actual monetary influx that year rather than accruement of debts, but that's not the same as not knowing the difference between cash and profit. Cheers for the clarity though.

OK have it your way but as an accountant I prepared company accounts until I retired so I do know what I am talking about. When cash is paid does not affect the profit and loss account, only income and expenditure account which deals with cash flow and is an entirely different thing.

[rovers11]

£27m+ loss over one year can't be turned around overnight. So expecting them to pump serious money in for a promotion push seems a little optimistic to me. Let's not kid ourselves, there figures would worry the most flamboyant of football chairmen.

The reason we had £27m losses is because we gambled at getting back to the premier lge at the first attempt. Venky's are still pumping serious money into the club - the wage bill is still massive, they sanctioned 14 new players in the summer, and have paid off expensive misfits. I don't see how them pumping serious money into the club is unrealistic when they are already pumping serious money into the club. Unfortunately, at the moment, the serious money is going on rectiftying the wrongs from last season - i.e. manager sackings and player pay offs.

Ironically IF rovers were promoted and I know it is a big IF. This whole debt would be wiped out.

With the high earners off the pay roll, so cheaper wages - the losses should be less next year.

Though I doubt if the pay offs are included in these recent figures.

I think we have to work on the assumption that we won't get promoted this season. There's an outside chace we will but we can't plan for that.

The losses will be far less next season as we haven't spent big this summer and (hopefully) we won't have 3 managerial sackings!

[Guest Norbert]

I hope we are in a position to have another go next season if we don't go up and we're not on an accelerated clusterf_ck programme as demonstrated by Coventry and Portsmouth.

[OJRovers]

Just think what a proper manager/chairman would've been able to do with the MILLIONS wasted on Kean, berg, murthy, Appleton, Portugal, shebby etc etc

You can't say venkys haven't put the money up, but ultimately they are the ones that have appointed crooks and muppets to spend it.

This despite plenty of people genuinely trying to help them avoid such a fate. They have only ever listened to the wrong people. You've got to wonder why.

[rovers11]

Sadly, as was shown by the performance last night at Leicester, we are some distance away from having a squad that is good enough to get us back into the Premier League. We need some real quality in key positions and with these losses and FFP, I'm not sure how we improve the squad. Free transfers and players out of contract are unlikely to deliver Premier League football on the evidence of what we have seen so far. They will probably keep us in mid-table, hopefully, but to be challenging the likes of Leicester and QPR we will need more than what we have at present.

I agree to a certain extent. Don't think we have enough quality this season to get promotion. BUT we may sneak a play off place and then you never know.

The players Bowyer has brought in on free transfer and low fees have massively improved the squad from last season. We have gone from a bottom 5 or 6 team to probably a top 10 team. When you consider the likes of Campbell, Dunn and Rochina are to come back they will improve the team further.

I actually don't think we are that far off being a top 6 team. Leicester away is one of the toughest places to go and we could could easily have got a draw from that in the end.

[den]

http://www.lancashiretelegraph.co.uk/sport/football/blackburn_rovers/news/10681229.Venky_s_record_a___27m_loss/

[Rover_Shaun]

So for a numb nuts like me these losses are Rovers losses even though they are attributed to a holding company?

[den]

So for a numb nuts like me these losses are Rovers losses even though they are attributed to a holding company?

Think so. Paul explained it earlier - the holding company was set up for the sole purpose of BRFC.

To think how some fans thought relegation wouldn't be a problem and in some cases preferred it.

[patrickvalery]

The reassuring thing is that Balaji intended to put his teenage son on the board of directors some time ago. I'm guessing this hasn't happened yet. But I'm sure that when it does we'll find ourselves in a much healthier state. Derek has already made significant cut backs on the office furniture and we managed to loan out Danny Murphy to talksport. I have it on good authority that Etuhu was actually put down over the summer as it was considered to be the humane thing to do in the end. So we should start to notice the benefit of these prudent moves in the next financial year. I also believe the club have been looking to recruit a specialist to the board of directors and they are set to announce his appointment some time next week. My source tells me Rovers has made a real coup in this department and managed to snare somebody with a proven track record. I said id keep it quiet but what the hell. Rovers will next week appoint the rosy red arsed Stephen Lee to oversee future investment opportunities.

[DavidMailsTightPerm]

I agree to a certain extent. Don't think we have enough quality this season to get promotion. BUT we may sneak a play off place and then you never know.

The players Bowyer has brought in on free transfer and low fees have massively improved the squad from last season. We have gone from a bottom 5 or 6 team to probably a top 10 team. When you consider the likes of Campbell, Dunn and Rochina are to come back they will improve the team further.

I actually don't think we are that far off being a top 6 team. Leicester away is one of the toughest places to go and we could could easily have got a draw from that in the end.

GB has been unfortunate with injuries - any one of those three would make a difference. The biggest loss is obviously Dunn and Rochina being out at the same time.

[K-Hod]

Thought it would be more than that tbh (even without player trading).

[onlyonejackwalker]

The reassuring thing is that Balaji intended to put his teenage son on the board of directors some time ago. I'm guessing this hasn't happened yet. But I'm sure that when it does we'll find ourselves in a much healthier state. Derek has already made significant cut backs on the office furniture and we managed to loan out Danny Murphy to talksport. I have it on good authority that Etuhu was actually put down over the summer as it was considered to be the humane thing to do in the end. So we should start to notice the benefit of these prudent moves in the next financial year. I also believe the club have been looking to recruit a specialist to the board of directors and they are set to announce his appointment some time next week. My source tells me Rovers has made a real coup in this department and managed to snare somebody with a proven track record. I said id keep it quiet but what the hell. Rovers will next week appoint the rosy red arsed Stephen Lee to oversee future investment opportunities.

Stephen Lee former world number 8 snooker player? Currently in the process of getting a life-time ban for match fixing at 6 events? I thought your post was serious until I read this bit...

On topic, why the suprise at our amazing losses? Many on here have been predicting exactly this for quite a while, often to lasting ridicule. Venky's business masterclass is there for all to see and follow. They are well and truly bonkers!

[Paul]

The losses will be far less next season as we haven't spent big this summer and (hopefully) we won't have 3 managerial sackings!

Debt is debt even if we make a smaller loss next season it doesn't go away.

I realise everyone is enjoying a couple of good wins and the bad guys have left. This doesn't and shouldn't disguise the fact it is only Venkys guarantee to provide funds which allows Rovers to keep trading. If the funding stops we stop. Simple.

Don't get complacent.

[West Yorks Rover]

Stephen Lee former world number 8 snooker player? Currently in the process of getting a life-time ban for match fixing at 6 events? I thought your post was serious until I read this bit...

On topic, why the suprise at our amazing losses? Many on here have been predicting exactly this for quite a while, often to lasting ridicule. Venky's business masterclass is there for all to see and follow. They are well and truly bonkers!

They are definitely BONKSTERS !

Thank God they're loaded, hopefully !

[den]

Exactly Paul. First and foremost the club has to reduce expenditure by £27m+/year, every year from now on (assuming income stays steady) - and even then this debt will still need clearing. Sounds serious to me. Maybe Venky's know better, in which case some kind of statement might help.

[Ozz]

Also, if Bank Of India suddenly decide to close the `arrangement` then it then comes down to how deep Venkys pockets are. And the longer we are mid table second tier (or worse) the shorter those pockets become, IMO.

[cesus]

I may be being stupid here but these accounts won't take into account paying off Berg (court settlement was May/June wasn't it!), Appleton, Murphy, Gomes, Pedersen & Givet will they?