Venky’s, HMRC…The Plot Thickens ?

[Brian-Potter]

14 hours ago, Rogerb said:

Could be the money from the venture capitalist loan

As Herbie says this would be highly unlikely. I’m also fairly sure there are restrictions around an entity borrowing money to raise its issued share capital. Also, I don’t think this relates to previous money sent being converted to share capital as the the date of the increase in share capital is 10th October and going by previous filings for VLL and VHL this appears to be the date of the equity infusion rather than the filing date at CH. Speculation of course though.

[tomphil]

So it looks like over 15 million into that company now in form of venture capital and share issue which may be roughly the clubs losses this term, taking into account budget cut and player income.

Is that what is taking shape here i wonder ?

 

[Miller11]

Venky’s Delhi High Court judgement

No meat to the bones on the link above, but there was an interim relief order last week which allows some cash flow back into Rovers from Venky’s. 

Edited November 10, 2023 by Miller11

[Andy]

Was just coming on to post the same.

Good to finally get a bit more meat on the bones of this.

But more importantly, that cash can now (albeit temporarily for the time being) be sent to the club.

Hopefully helps with the Jan window coming up.

[tomphil]

'Relief'  is the right word, hopefully no fire sale now starting in Jan  🙏

Nixon and a few agents will be disappointed.

[JHRover]

So £1.8 million, over 10% of the total cash being sent over from India, coming in as 'agent fee (commission)'

Seems excessive to me.

[MarkBRFC]

15 minutes ago, Andy said:

Was just coming on to post the same.

Good to finally get a bit more meat on the bones of this.

But more importantly, that cash can now (albeit temporarily for the time being) be sent to the club.

Hopefully helps with the Jan window coming up.

Judging by that document none of it will be for the transfer window.

[lraC]

13 minutes ago, JHRover said:

So £1.8 million, over 10% of the total cash being sent over from India, coming in as 'agent fee (commission)'

Seems excessive to me.

I do wonder if that's agents commission for players, or maybe for the bridging loan. It seems far too high to be for players.

[tomphil]

Agents fees have always been questionable at Rovers under this ownership but wasn't there a tale floating around about unpaid commission ?

[philipl]

Meeting all contractual obligations.

Suggests Rovers generated funds are free to be used elsewhere.

[Andy]

46 minutes ago, MarkBRFC said:

Judging by that document none of it will be for the transfer window.

Yeah, fair.

i guess, more importantly, the club will continue to meet its periodic financial obligations.

Considering that this matter has affected the flow of cash between India and England since early 2023, it’s a relief to see those restrictions lifted (albeit possibly temporarily).

[lraC]

4 minutes ago, philipl said:

Meeting all contractual obligations.

Suggests Rovers generated funds are free to be used elsewhere.

It seems we were very close to the edge without this £11.5 million coming in. The closure of the Blackburn end was down to cashflow, so that's how serious this is. 

[tomphil]

Transactions to club not yet under investigation but seems every penny has to be accounted for now.  Doubt that will alter in the future if they are allowed to send more but i get the feeling at some point there might be digging into all the past money transfers and where it all went.

That would be interesting to say the least but it would go on for years as this issue probably will anyway now.  Once these tins of worms are opened their books will be crawled over forever now, even worse if they are found guilty of anything.

They really need to be selling the club now i think it might end there is no real option.

[RoverCanada]

Our reported 'intermediary' fees have been on the lower end of the Championship the past few years (£697k for Feb 2022-Jan 2023, which ranks us only 20th in the Championship), so I'd suspect that amount relates to accumulated/unpaid agent fees/commissions, as apparently rumoured, rather than anything new given our limited transfers of late.

Extrapolating that salary and wages figure for Oct-Dec 2023 suggests our wage bill is down to £15.3m, but shouldn't take that extrapolation too seriously given it won't include various bonuses that accumulate over the year, signing on fees, etc. General assumption was that our wage bill had fallen a lot last year, but the VLL accounts suggest it actually rose to £25.8m in 2022-23 (vs £24.8m in 2021-22; note the Blackburn Roves accounts have staff costs at £24.4m), possibly due to bonuses related to our relative success on the pitch, a couple deep-ish cup runs, etc.

[JHRover]

Yeah I agree that to any sane people now is the time to be getting out of this. Even if they have done nothing seriously wrong it is clear that there is a potentially drawn out and thorough investigation getting underway and whilst that goes on the club is going to suffer (even more) than is normal under their awful ownership.

If we are now at the point that they are having to go to Court to get authorisation each and every time they need to meet 'obligations' at Ewood then this is going to get silly, whilst it might be a positive that permission has been given for an injection to meet wage and cost liabilities I assume we are going to have to repeat this in the New Year when the next bit is due and assume it doesn't cover non-essential expenditure e.g. funds for transfers or any other spending.

Some might be happy or comfortable with the club limping along in such a paralysed and zombie like state but I'm not. If they can't fund the club or at best can keep the lights on whilst they deal with whatever issues they have in India then we are just drifting to nowhere

 

[toogs]

19 minutes ago, JHRover said:

to any sane people

oh bugger

[Atko's Engine]

I'm sure many fans will frame this in the context of a win for Venkys over the tyranny of the Indian govt. And to some extent it appears to be that, at least temporarily. 

However, in reality what it is is yet another damning indictment of the modern model of club ownership; the fact that a near-150 year old historic, cultural & community-oriented institution survives or disappears at the whim of an elected or non-elected  official, or an appointed judge, thousands of miles away, in a non-transparent process that genuine stakeholders of the club have absolutely no influence in whatsoever. 

It really needs the UK authorities to look into the appropriateness of these ownership models for the good of sport on this country for future generations.

[tomphil]

I'd think its been a case of look our Chicken business is under investigation for what we consider to be clerical error and that's what we'll plead. Meanwhile a famous  overseas business our core business funds with go bankrupt very quickly without our input bringing with it an typhoon of negative worldwide publicity for us and the Indian govt.

For which, should we as we expect,  be found not guilty of fraud, we will sue the Indian govt for losses and damages to both businesses.

So just let us send them the necessary funds please.

Edited November 10, 2023 by tomphil

[broadsword]

We're stuck with the bastards forever, aren't we?

 

Should've known better than to hope

[R0verb0y]

Just listening to the Radio Lancs warm-up for tonight's game and they've quoted JDT as saying that the injuries to the  two players who couldn't be considered for tonight's game could be caused by weaknesses in their legs attributable to sitting for long journeys on Swaggot's wonderful new bus. (My words; not JDT's!)

I can't remember if he was referring to Cardiff City or Bristol City - but at least one of those two clubsflies to away games in the north of England to avoid risking such injuries.

Yet another thing to thank our disinterested owners for! 😐🤔😬🙄

[JohnD]

They'd be sat down longer going to and from airport/ground, waiting at the gate and sat on the plane than on the coach journey.

[Upside Down]

31 minutes ago, JohnD said:

They'd be sat down longer going to and from airport/ground, waiting at the gate and sat on the plane than on the coach journey.

You can stand up in the airport, at least you can in all the ones I've been in.

 

[tomphil]

An hour or two on a plane how from Norwich versus 4 or 5 hours just sat on a coach.

It's a no contest and anyone who questions it has a hole in the head, try and remember most of them have just played 95 mins of football.

[JHRover]

There's a good reason many clubs do it. Not for the sake of it but because they are advised by the physio people that it is better for their players.

Here such concerns are immaterial whilst run by parasites only concerned with meeting their own financial targets and bollocks to the football.

[Upside Down]

22 minutes ago, tomphil said:

An hour or two on a plane how from Norwich versus 4 or 5 hours just sat on a coach.

It's a no contest and anyone who questions it has a hole in the head, try and remember most of them have just played 95 mins of football.

But it's a new bus though.