[Archived] Venky's Takeover Complete

[fishmesiter]

That's still down to Jacks legacy, not the trust. We mainly went up thanks to the likes of Duff, Dunn and Jansen - either products of our youth system or bought with Jacks money (Jansen). What have the Trust actually done apart from "oversee" us? Yes they provided us with 3 million a season initially but that was after telling us the funds wouldn't be drying up just after Jack died.

However then they withdrew even this and refused to provide funds to a manager who was selling players for far more than he had bought them for.

Remember this was Jacks money left to them to look after his interests with. His biggest passion was arguably Rovers. The level of support they provided us would, under most circumstances have seen us relegated, however thanks to a succession of managers with an ability to find talents from nowhere together with the stewardship of JW this didn't happen.

But we did this in spite of, not because of the Trust. The only exception I'd add here is if they directly appointed JW, as that was a good move.

Yeah - the likes of Duff etc got us promoted that year and then enabled us to maintain staus quo. Now you show me another club in the modern era who has come into the premier league and been able, without a major benefactor to have maintained a mid table position for the last ten years and only ended up with debts of around £20m. Look at Bolton - their debts are approaching £100m but they claim that this is sustainable.

I accept the Trust haven't been the most forecoming in terms of finance, but they don't deserve allof the neagative postings

[Amo]

Wouldn't it be funny if VH sells the club to Syed next week for 55 million and make a profit of 10 million that's not bad for one week and if syed really could invest 300 mil into the club straight away surely 310 wouldn't make that much of a difference.

Don't say that. You'll be raising a lot of hopes.

That's still down to Jacks legacy, not the trust. We mainly went up thanks to the likes of Duff, Dunn and Jansen - either products of our youth system or bought with Jacks money (Jansen). What have the Trust actually done apart from "oversee" us? Yes they provided us with 3 million a season initially but that was after telling us the funds wouldn't be drying up just after Jack died.

However then they withdrew even this and refused to provide funds to a manager who was selling players for far more than he had bought them for.

Remember this was Jacks money left to them to look after his interests with. His biggest passion was arguably Rovers. The level of support they provided us would, under most circumstances have seen us relegated, however thanks to a succession of managers with an ability to find talents from nowhere together with the stewardship of JW this didn't happen.

But we did this in spite of, not because of the Trust. The only exception I'd add here is if they directly appointed JW, as that was a good move.

Thank you.

Why are people always sucking up to the Trust? They simply inherited the club after Jack's passing and despite initially offering a financial cushion (which y'know, was the bare minimum), in recent years they haven't thrown us so much as a bone, and failed to back our best manager for some time, which contributed to his disillusion at the club. When you consider their personal wealth, it's disgraceful that we've been forced to sell all of our best players just to cover debts or create a transfer budget.

[tony gale's mic]

Yeah - the likes of Duff etc got us promoted that year and then enabled us to maintain staus quo. Now you show me another club in the modern era who has come into the premier league and been able, without a major benefactor to have maintained a mid table position for the last ten years and only ended up with debts of around £20m. Look at Bolton - their debts are approaching £100m but they claim that this is sustainable.

I accept the Trust haven't been the most forecoming in terms of finance, but they don't deserve allof the neagative postings

Yeah as a club we've done well thanks to our chairman and managers (bar Ince). But what have the Trust done for us? Yes they did a bit early on but as one of the beneficiaries of Jacks will this was the minimum expected. But as soon as they could they got shot of us and cut off funding.

Good riddance I say.

[philipl]

Yeah as a club we've done well thanks to our chairman and managers (bar Ince). But what have the Trust done for us? Yes they did a bit early on but as one of the beneficiaries of Jacks will this was the minimum expected. But as soon as they could they got shot of us and cut off funding.

Good riddance I say.

And I say you are posting utter garbage.

[imy9]

Beneficiary implies a benefit, the trust have no interest in Blackburn rovers football club and have made losses on it throughout the years, whilst their other businesses gave thrived. If Dave whelan died tomorrow would his family want the albatross that is Wigan fc around their necks? The trust and Blackburn rivers has been an arranged marriage that has lost it's way, hopefully with vh group we will move forward.

[fishmesiter]

Don't say that. You'll be raising a lot of hopes.

Thank you.

Why are people always sucking up to the Trust? They simply inherited the club after Jack's passing and despite initially offering a financial cushion (which y'know, was the bare minimum), in recent years they haven't thrown us so much as a bone, and failed to back our best manager for some time, which contributed to his disillusion at the club. When you consider their personal wealth, it's disgraceful that we've been forced to sell all of our best players just to cover debts or create a transfer budget.

Oh my God - are you just going to thro away everything you can on a hobby. Jack (and Fred don't forget) started life in a back street workshop and turned it into a multi-million pound company. He had the foresight to retain the rights to the land (or buy the land up) so he could profit from this when the M65 was built and companies started to look for premises close to it. You consider it's disgracful we've had to sell our bettter players to cover debts. It's a business - Jack was a business man - he wanted to ensure the club was self-sufficient - it is - that involves selling our better players to survive we don't generate enough revenue to do anythign else - grow up and get in the real world!

[John]

Beneficiary implies a benefit, the trust have no interest in Blackburn rovers football club and have made losses on it throughout the years, whilst their other businesses gave thrived. If Dave whelan died tomorrow would his family want the albatross that is Wigan fc around their necks? The trust and Blackburn rivers has been an arranged marriage that has lost it's way, hopefully with vh group we will move forward.

Out of interest, you say hopefully we will move forward, what do you mean?

Finishing higher up the league (top 6?), winning trophies or spending more on players? (or all of these)

[broadsword]

Didn't they convert the loans they'd given the club to equity? I'm not sure of the extent to which they were under-writing our annual losses, but they were still putting money in.

Well, up until last summer anyway, when £3million quid miraculously disappeared and no money was given for new signings (despite it being desperately needed).

No matter how often I am told that the Trust weren't obligated to hold onto us nor prop up our losses for ever more, I can't help but be bitter that they've off-loaded us onto the first prospective buyers who could jump through all the necessary hoops. If Jack Walker, the man who created the wealth of the Walker group of companies, was still alive, would he have sold the club to Venky's? They are an Indian company who aren't interested in buying the club through some long-cherished affection for it, but rather they are using it as a vehicle for a marketing plan, with the intention that it will pay its own way in the long term. Does the marketing plan hold water, what needs to happen for Venky's to break even on its investment?

And more importantly, what happens if it goes wrong? Maybe not horribly wrong, but what happens if it's not worth the candle for Venky's? If officially licensed Rovers shirts don't fly off the shelves in downtown Chennai, and not enough ESPN or PPV units are sold, what then?

When we last got relegated, Jack Walker stepped up to the plate, and didn't waver. Not because of a marketing plan, but through love of the club. What happens now if things go South? Will Venky's step up to the plate and put the money in to make it right, or will they melt and flog us to anyone who'll take us?

Remember, this whole thing has been motivated by an untried marketing plan. That's what this multi-million pound purchase is about. A provincial, unfashionable football club tries to make it big in India. It may well work - fantastic. But it has the potential to go really wrong, and despite protestations to the contrary that they know exactly what they're doing, they're no mugs etc etc, they have no track record in ownership of foreign football clubs, and it's naturally a worrying time.

But there's nothing I can do about it. I feel like a chicken trying to cross the North Circular. If I go splat, not much I can do, is there?

[fishmesiter]

Out of interest, you say hopefully we will move forward, what do you mean?

Finishing higher up the league (top 6?), winning trophies or spending more on players? (or all of these)

my view of moving forward would be not worryign about relegation - and therefore pushing possibly for a place in Europe

[Al]

Beneficiary implies a benefit, the trust have no interest in Blackburn rovers football club and have made losses on it throughout the years, whilst their other businesses gave thrived. If Dave whelan died tomorrow would his family want the albatross that is Wigan fc around their necks? The trust and Blackburn rivers has been an arranged marriage that has lost it's way, hopefully with vh group we will move forward.

Of course they got a benefit. Six Hundred bloody million benefits. If Rovers was a liability it should have been accepted as part of the package. It was not!

[BuckyRover]

Didn't they convert the loans they'd given the club to equity? I'm not sure of the extent to which they were under-writing our annual losses, but they were still putting money in.

Well, up until last summer anyway, when £3million quid miraculously disappeared and no money was given for new signings (despite it being desperately needed).

No matter how often I am told that the Trust weren't obligated to hold onto us nor prop up our losses for ever more, I can't help but be bitter that they've off-loaded us onto the first prospective buyers who could jump through all the necessary hoops. If Jack Walker, the man who created the wealth of the Walker group of companies, was still alive, would he have sold the club to Venky's? They are an Indian company who aren't interested in buying the club through some long-cherished affection for it, but rather they are using it as a vehicle for a marketing plan, with the intention that it will pay its own way in the long term. Does the marketing plan hold water, what needs to happen for Venky's to break even on its investment?

And more importantly, what happens if it goes wrong? Maybe not horribly wrong, but what happens if it's not worth the candle for Venky's? If officially licensed Rovers shirts don't fly off the shelves in downtown Chennai, and not enough ESPN or PPV units are sold, what then?

When we last got relegated, Jack Walker stepped up to the plate, and didn't waver. Not because of a marketing plan, but through love of the club. What happens now if things go South? Will Venky's step up to the plate and put the money in to make it right, or will they melt and flog us to anyone who'll take us?

Remember, this whole thing has been motivated by an untried marketing plan. That's what this multi-million pound purchase is about. A provincial, unfashionable football club tries to make it big in India. It may well work - fantastic. But it has the potential to go really wrong, and despite protestations to the contrary that they know exactly what they're doing, they're no mugs etc etc, they have no track record in ownership of foreign football clubs, and it's naturally a worrying time.

But there's nothing I can do about it. I feel like a chicken trying to cross the North Circular. If I go splat, not much I can do, is there?

How many clubs in the Premiership have a chairman that is solely there for the love of the club?

What you desire doesn't exist anymore. The football world has changed. We would have been relegated while waiting for your dream owner. I think that was a very likely scenario.

[imy9]

John- for me moving forward would be for the management to invest more in the playing squad, consolidate the top ten finish of last year and become more recognised around the world.

[The Dart]

Looking at Bolton Wanderers' £93,000,000 debt is sobering.

Oh w*$£(y Wanderers...

I can't see any one buying them if they need it. They're definately screwed. We have a chance now to not be. Which is a positive.

[John]

Fair few blog comments, at the bottom, on this article which has been previously posted.

[tony gale's mic]

And I say you are posting utter garbage.

Great argument there Phil. Really well thought out. Shame you can't read my body language isn't it?

Like I said earlier, you've become the laughing stock of this forum.

[philipl]

OK TGM, you were posting in jest and I accept that.

The Trust have been brilliant owners for Rovers and have done an absolutely magnificent job of maintaining Jack's legacy.

[Mattyblue]

OK TGM, you were posting in jest and I accept that.

The Trust have been brilliant owners for Rovers and have done an absolutely magnificent job of maintaining Jack's legacy.

what is your opinion on their decision making post 2007?

[John]

Little bit more info on Venky's plans here (not sure if this has been posted already)

Pune-based poultry major Venkateshwara Hatcheries (VH) plans to train Indian talent and will aim to put an Indian footballer in its latest acquisition, the English Premier League team of Blackburn Rovers.

“Our aim is to have an Indian footballer in the team, and we will work along these lines,” said Anuradha Desai, Chairperson, VH.

Though the details are yet to be worked out, VH plans is to hold camps for young Indian footballers, is considering bringing in the Blackburn Rovers coach for training and may even take youngsters to England for training, she said.

Blackburn Rovers owners to egg Indian onto football team

[Mattyblue]

Little bit more info on Venky's plans here (not sure if this has been posted already)

Pune-based poultry major Venkateshwara Hatcheries (VH) plans to train Indian talent and will aim to put an Indian footballer in its latest acquisition, the English Premier League team of Blackburn Rovers.

“Our aim is to have an Indian footballer in the team, and we will work along these lines,” said Anuradha Desai, Chairperson, VH.

Though the details are yet to be worked out, VH plans is to hold camps for young Indian footballers, is considering bringing in the Blackburn Rovers coach for training and may even take youngsters to England for training, she said.

Blackburn Rovers owners to egg Indian onto football team

India were just beaten 5-0 by Kuwait (or someone else as prestigous), how on Earth is an Indian player supposed to play in the PL.

The cut throat world of English football is obviously new to them, but my God they need to get up to speed and quick.

[philipl]

I havve to admit I am baffled by this bit:

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.”

[imy9]

Excellent find there John.

So breakdown is:

“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.”

I can see what the £20 million for the club and the debt which equates to about £19 million, but what is the £15 million going to club? Any educated guesses? Could be our transfer funds for January...

EDIT: Beat me to it Phillip, how do you interpret the above? Does the servicing of the debt mean that it has not been cleared?

[philipl]

All I can say is the Venky's are going to have get their PR act together double quick.

They have to understand that anything said in India will be heard in Blackburn within minutes.

You can draw any conclusion you want from that paragraph including them having retained the Walker Trust for three years on a management contract- that would be fantastic news for all of us if it is true.

I cannot believe for a minute that they are leaving the £16m overdraft in place. By all means retain the facility to have an overdraft but are we seriously being told that the overdraft hasn't been paid down???

[unclejack28]

Fair few blog comments, at the bottom, on this article which has been previously posted.

Just reading the blog posts and found this post to sum up what I feel, again being from India this makes total sense.

They are probably on to something. If you look at the overseas commercial avenues explored by most Premier League clubs, they are all in South East Asia - Singapore, Malaysia, Thailand and China. There is a huge middle class base in India, and salary levels while still cheap by UK standards have risen massively. Costs of living again is still much lower leading to more disposable income. Add to the drop in the value of the British Pound, Venky's have saved 15% compared to trying to do this 3 years ago.

They've made it quite clear that they aren't a sugar daddy with bundles of money but they have only invested a moderate sum and seem to have a business plan of how to exploit commercial opportunities. The buzz surrounding this acquisition will surely give Blackburn a few more airings over on Indian television. They sometimes air upto 8 live games every weekend - assuming the noon Saturday kick-off, two 3pm and the late game. Plus three on Sunday and one on Monday night, plus even if the bulk of India follows the big clubs (Utd, Chelsea, Arsenal, Liverpool and lets throw in City and Spurs too), that still gives Indian companies six 90 minute slots to advertise on the hoardings and Blackburn jerseys.

And why just Indian companies, what is stopping a Vodafone or a Volkswagen of the world (just naming companies that have major presence in India as well as Britain) from exploiting this opportunity.

Plus all they need to do to attract a bunch of Indian fans is hold a friendly or two against the national team or provide a trial to someone like Sunil Chetri. Maybe sign Michael Chopra (who wont be too expensive but is considering switching nationality to play for India.

The opportunities are endless, it just remains to be seen how well they can exploit it.

WRITTEN BY A GUY CALLED CHESHIRE INDIAN

[philipl]

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.

[Mattyblue]

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.

Good to see some things never change.