[Archived] Rovers Takeover

[1874]

5 million pound a transfer window is a 100 million pound investment over the next 10 years.

Doesn't sound so bad to me from where we are now.

and we don't now have to sell Phil Jones

[John]

From what I have read, Venky’s appear to be a very credible company/organisation – even though I have the natural feeling of worry as going into the unknown, this makes me feel relatively comfortable about this deal (even though there is still little detail around it).

Proof of funds/financing will be questions which the Trust & Premier League would have asked and presumably satisfactory answers have/will be given.

I also like that JW and current management will stay for now – it is vital to retain stability IMO, in the short-term at least, as too many changes can have a disruptive effect. Need to be realistic though that usually (which may not be the case here), new owners like their own people in charge.

It might not be mouth watering for some fans however in the eyes of the current owners, in their opinion this is a safe/suitable/stable deal all round. Venky’s have stated they will come out with further details on their plans in due course which should be interesting…..

[SouthAussieRover]

You need to go into the Darwen End - though the football isn't brilliant at the moment - I find the atmosphere the best it has been since the ground was redeveloped.

As for the second point - I would change your friends if they still refer to the Asian community in that way. Over the last few years there has been a marked increase in the Asian community attending matches.

He needs to go in any part of the ground rather than lurking around the chat forum on match days.

[Mattyblue]

Adopted Scouser-

I hope you put them right.

Our ground is NEVER 'half full' for league matches.

The atmosphere at Ewood is on a par or better than the majority of the league.

This kind of crap is peddled by other clubs fans constantly, I hope you gave them a swift rebuke, 'best supported club by population in the country' etc, instead of the 'yeah I know, we are crap arent we' approach of some of our weak minded fans.

[BRFC95]

Well said that man. An excellent reply to an unedifying post. In reality race is never far away on this board is it?

Well you certainly like to highlight it at every opportunity. You can spot it where others don't.

[BuckyRover]

Well you certainly like to highlight it at every opportunity. You can spot it where others don't.

That's bull BRFC95. 47er is not wrong in this instance. A quick peruse of ICBINF confirms this.

[LeftWinger]

And your alternative is.............?

That wasn’t a go at you – more so the sad state of the Premier League. How it can be classed as a ‘competition’ when the majority of the competitors main aim is just to stay in it I don’t know. The lower divisions are far more entertaining – as anyone can win them. Look at Blackpool last season – favourites for relegation and they get promoted. A salary cap would be the only way forward. It would become a more even playing field and players such as Toure 220k and Rooney 250k wouldn’t be on such sickening wages. It’s probably even help the national team in the long run as clubs try to produce more of their own talent and we end up with more English players getting experience of playing abroad. I actually went to watch a Rugby League game this year and found it far more entertaining than the rubbish I watch in the Premier League. When survival is everything, style goes out the window and we end up relying on nothing but set-pieces for goals.

[BuckyRover]

Wigan, Bolton and WBA fans would disagree with you.

[budha]

What exactly the Premier League's fit and proper test include from financial standpoint? Can a club be bought with a loan? Is there some sum how much the new owners must be worth or promise to invest?

[Mattyblue]

That's bull BRFC95. 47er is not wrong in this instance. A quick peruse of ICBINF confirms this.

I'm sorry Bucky, but race/religion is a big issue in this country- if you like it or not, so ICBINF is a place where that can be discussed- sorry if that doesn't sit well with the Utopian thought police.

[Spansterkid]

I did not, so I will take some of the above advice and leave the financial analysis to the professionals at the LT and get back to my day job....of financial analysis

that's handy because Nicko likes to...

leave the money stuff to the experts

While he still dreams on that Rovers are being taken over by billionaires, as reported incorrectly by him in the People...

BLACKBURN ROVERS are a shock takeover target for the VH Group, a billion-pound Indian company

Hey Nicko, why don't YOU leave the money stuff to the experts son?

[LeftWinger]

Wigan, Bolton and WBA fans would disagree with you.

In fairness, all three sets of fans at least get to witness some football.

[nicko]

Hey Nicko, why don't YOU leave the money stuff to the experts son?[/b]

You concentrate on your daft wee figures.

I will just keep pulling the stories.

Oh, and fortunately we are not related.

[47er]

Well you certainly like to highlight it at every opportunity. You can spot it where others don't.

I think that's more a comment on you than me.

[Sparky Marky]

that's handy because Nicko likes to...

While he still dreams on that Rovers are being taken over by billionaires, as reported incorrectly by him in the People...

Hey Nicko, why don't YOU leave the money stuff to the experts son?

[Spansterkid]

You concentrate on your daft wee figures.

I will just keep pulling the stories.

Oh, and fortunately we are not related.

But you did concentrate on extremely daft imaginary big figures, so you just keep plucking your figures out of thin air and I'll get mine from those on the VH Group website where it says they are a £184m company.

[Kelbo]

that's handy because Nicko likes to...

While he still dreams on that Rovers are being taken over by billionaires, as reported incorrectly by him in the People...

Hey Nicko, why don't YOU leave the money stuff to the experts son?

Well, I have kept pretty quiet about this one, here are a few questions for you as it does appear common sense is not one of your virtues.

Rothschilds are a serious banking organisation and if we are to believe where you are coming from, they are incompetant!!

The trust who own Rovers at the moment are sound businessmen, used to making tough decisions, are they also incompetant?

John Williams is respected throughout football for his sound busines acumin, he too is incompetant if you are to be believed?

The answer I would give is, three entities of such calibre must be comfortable with what is on offer and a sound business and football plan to boot.

Now, I think you are a little out of your depth or as you are from Newcastle are you Gazza writing under the influence?

[Mc Love]

Ladies please stop the bitching!

[joey_big_nose]

Of course they have borrowed the money. No question. Look at this story about their accounts:

http://www.valuenote...668&Cat=C&Id=36

and

http://profit.ndtv.c...-cfo-says-97721

They are a publicly quoted company. Their debt/equity ratio is around 30% which is fine for a company that size. Indeed it seems they have been paying off debt and the markets seem happy with their liquidity. But they have definitely borrowed. All of it, and then formed a strategic alliance as part of their business plan. Overall it looks a healthy, if slightly uncomfortable business for anyone with links to animal welfare, (this is Intensive farming of animals with a capital 'I'). There are, however, 2 slightly concerning business issues which we should be concerned about, leaving aside any ethical concerns that may arise from any future Jamie Oliver chicken investigations:

1. The PBT ratio to revenues is poor. Broadly you should look at how much money is coming in (revenue) and how much you have left after costs (Profit). Their margin is currently around 12% and has been knocking around 7% in the past. Most businesses that size would be looking to be well above 22 or 23%.

2. As one of the articles note, such wafer thin margins are hugely susceptible to sudden price rises or flu outbreaks etc which would quickly put pressure on the company.

That said they have cash liquidity and they have diversified their business into other areas, for precisely those reasons, and globalisation is another way of expanding whilst spreading the risk. Rovers and football helps the global spread of chicken farming. This business strategy is the reason I would guess that Venky's won the day. They are publicly quoted and hence more trustworthy in what they say. It would be much easier to tie a corporation like this down on covenants over Brockhall etc., than it would a foreign individual not living in the UK ... try suing him if he breaks any of them. And the Trust just wouldn't fancy future litigation after disposal.

Had Syed or Shah put the money in immediately, of course, as per Abramaovich or Fayed that might be a different story. But they didn't. Fifteen year plans don't wash for Trusts wanting protection. As a private company with no duty of disclosure it probably felt too risky. Check out how easy it is to get Venky's information on the web - shareholders, revenue, debt - yes debt, compared with getting similar information on Syed or Shah. No comparison. And that is worrying. Venky have probably signed up to the Trust's conditions. I always assumed them to be too onerous and soI couldn't see a buyer ever getting his money back out.

But to be fair, it looks like they do have a plan. It isn't earth shattering. But it is credible. And it is a plan.

So what is it? At a guess: Rovers will be the Ajax of the UK regularly developing and selling players from across the world. Including, quickly, India. Sam will probably move to be a global Director of Football, which, with his knowledge of sports science etc would probably suit him, and we will be getting a series of young coaches, again being prepared ahead of lucrative moves in the mid term.

That, coupled with Indian marketing, is a realistic plan to pay back the banks without touching the assets that make the club what it is. As a public company, quoted on an international exchange with solid rule of law to back it, the Trust had to go with this option. The other two private bids would have been loaded with risk. And you can't gamble with a club's heritage, or a man's legacy.

It isn't a dream, it isn't a Lottery win, it isn't a return of the Walker messiah. But it could be a whole lot worse.

Last month in Mumbai I saw festivals to Ganesha, the elephant faced Hindu God of Luck.

We will all need him now.

Excellent post, bears repeating. it's a nuthouse on here.

Hope your right about this. I would suppose that the strategy is as you say but with idea of eventually selling the club at some point down the road if they need to liquidate assets or get a good offer.

Problem from everyones perspective is it would be easy for us to be relegated such is the increasing quality of the mid table of the Prem and the only modest investment in the sqaud. We are going to be totally reliant on having a very good manager and finding excellent young players who other clubs with bigger resources/profiles have not sniffed out. Very very tricky. There must be a lot of faith in Kentaro.

Also football clubs with good squads can have a rubbish run of games, become unstable, and ultimately go down. Look at Newcastle, West Ham etc over the years. These teams had comparatively far more quality than their contemporaries than we have to ours at the moment. The game is inherantly super risky unless you have large investment and a very good manager.

So what I can't get my head around is if you are buying to diversify a vulnerable balance sheet why would you aquire a club for 40m which would eastily third in value if relegated? And also, if you look at other examples, bleed huge amount of money on wages while trying to reconfigure the squad for the Championship? It seems barmy from a business perspective.

There has to be some desire here to own a football club for the fun and prestige of it. The numbers are too daft to make a sensible business plan from my perspective, unless VH really think you can generate large funds from merchandise in India. That idea seems too speculative to me to hinge a purchase on.

[deryck guyler's spoon]

Hey Nicko, why don't YOU leave the money stuff to the experts son?

Fancy being called son by someone who calls themself "kid"!

[pancini]

I think one of the key factors is that they say they want to keep the managerial organisation as it is. Now if JW stays could you honestly see him staying around if he thinks this is going to go tits up. He knows he is well respected amongst the rovers fans and would he want to become a hate figure if it all goes wrong just for the sake of a few quid that i am sure he doesnt really need.

[TimmyJimmy]

I would hate to be involved in an acquisition with Phil. Just imagine, you spend months working on something for the common good, then suddenly without warning he starts saying it's doomed and he wants no part in it.

Strange.

(Maybe he is being paid to discredit the VH bid)

Philip doesn't need me or anyone else to stand up for him but your comments are totally unworthy of you and even asinine. I can assure you that he is aware of far more than he can ever print on here and is motivated only by good intent and of being a true supporter of the club.

Our paths cross from time to time and from speaking with him I know he has only one interest in this matter and that is the well being BRFC. He may at some stage choose to disclose who his contacts are and who he speaks to, that isn't a matter for me to discuss, however I know who they are and I also know the reliability of the information.

If you don't know the people you are talking about you should save your ridicule for more deserving targets.

[Spansterkid]

Well, I have kept pretty quiet about this one, here are a few questions for you as it does appear common sense is not one of your virtues.

Rothschilds are a serious banking organisation and if we are to believe where you are coming from, they are incompetant!!

The trust who own Rovers at the moment are sound businessmen, used to making tough decisions, are they also incompetant?

John Williams is respected throughout football for his sound busines acumin, he too is incompetant if you are to be believed?

The answer I would give is, three entities of such calibre must be comfortable with what is on offer and a sound business and football plan to boot.

Now, I think you are a little out of your depth or as you are from Newcastle are you Gazza writing under the influence?

They might have the best business plan in the history of football, I hope they do. They'll need to have because they don't have much money. I'm sure it must be a good plan for the board/Trust to be going ahead with it.

However, that doesn't alter the fact they they are not billionaires.

Born in Queen's Park Hospital, brought up BB2, don't drink any more, met Gazza once, he was very drunk, I was drunk.

[nicko]

I will try to make it easy for you. It seems obvious to me that the real issue is the total wealth of the 'family' involved here - both the Rao clan and whoever is close to them.

How much are the people who belong to the VH Group - headed it seems by a sister and two brothers of the founder among others - collectively worth?

Do you seriously believe they are going for broke with a Premier League club and putting a big chunk of their dough at risk?

I would imagine if you put the 'VH Group' in a bundle we are talking billions.

Meanwhile, go off and split some hairs.

[Spansterkid]

I would imagine if you put the 'VH Group' in a bundle we are talking billions.

Well you would indeed be imagining, but dream on... I'm off to split some hairs, find Gazza, buy him a bottle o' dog and ask him how you can make billions out of company worth £144m??? See you next week!