[Archived] In sickness and in health

[trs]

The Guardians take on all prem clubs finances

http://image.guardian.co.uk/sys-files/Guardian/documents/2011/05/18/sportscribddoc.pdf

[PAFELL]

The Guardians take on all prem clubs finances

http://image.guardian.co.uk/sys-files/Guardian/documents/2011/05/18/sportscribddoc.pdf

Interesting.

100mil put into the club. Plus

4m in interest free loan.

Then the everything we all knew already,

oddest ownership in the prem league,

will struggle if venkys don't sort themselves out.

[Paul]

100mil put into the club. Plus

4m in interest free loan.

I would be careful as to what one reads into those figures. Nothing we know of to date suggests Venky's have put £100m of capital into the club. If The Guardian know this to be correct it would be interesting to find the source as it must be in the public domain. If it is not in the public domain and verifiable this figure is either an outright guess OR it is a figure from a previous year or years accounts which would make the figure pre-Venky's.

If the figure is pre-Venky's, which is my suspicion, it equates quite nicely with the £100m of loans made at various times which the Trust turned in to capital over the last few years.

[John]

Our wage bill must be fairly high at the moment (much higher than previous because of all the new contracts in January?). The ratio against turnover was a major concern previously, I am interested to know what the new ownership's stance is on this.

Plus, as yet, in terms of marketing activity, whilst a long-term project, it will be interesting to see what Venky's do (general sponsorship, bringing in revenue etc).

[Stuart]

Looking forward to Philip's posts on this thread.

[dcbrfc]

I'm not great on all business jargon and that, but does that not say we have a loan outstanding of £21m? I thought Venky's bought the club for £25m and paid the debts off, taking total acquisition costs to £46m (ish) meaning we should be debt free?

Ignore that, I thought it was a link to something I read elsewhere yesterday where I'm sure it said we still owed £21m!!!

Haha, ignore the ignore that note ... Just re-read it and yes it does say we owe £21m.

[chris]

That really shows the impact of Champions League football. Where the money is.

[Al]

I'm not great on all business jargon and that, but does that not say we have a loan outstanding of £21m? I thought Venky's bought the club for £25m and paid the debts off, taking total acquisition costs to £46m (ish) meaning we should be debt free?

Ignore that, I thought it was a link to something I read elsewhere yesterday where I'm sure it said we still owed £21m!!!

Haha, ignore the ignore that note ... Just re-read it and yes it does say we owe £21m.

You need to bear in mind that those numbers were taken from the June 2010 accounts. Before the Venky's took over. Wether or not they have since paid off the £21m loan we will not know until the June 2011 accounts are published.

[bluebruce]

I'm not great on all business jargon and that, but does that not say we have a loan outstanding of £21m? I thought Venky's bought the club for £25m and paid the debts off, taking total acquisition costs to £46m (ish) meaning we should be debt free?

Ignore that, I thought it was a link to something I read elsewhere yesterday where I'm sure it said we still owed £21m!!!

Haha, ignore the ignore that note ... Just re-read it and yes it does say we owe £21m.

I've pointed this out before, but...as far as I am aware there are still no direct quotes from Venkys saying the debt has been paid off. The subtly (but importantly) different phraseology used has been that they have 'taken on' the debts (they might have said they're 'servicing' the debts once or twice too, can no longer remember), which I take to mean they have become responsible for the debts. Ie, the debts still exist, yes, and Venkys must ensure they are paid off at the agreed rate. I'm not a business expert, but that's how it comes across to me. The only sources actually saying in so many words that the debts have been paid off (again, as far as I've seen) have been newspapers etc, which just appear to be misinterpretations of the quotes about taking on the debts, unless they have information we're not privy to.

[dcbrfc]

You need to bear in mind that those numbers were taken from the June 2010 accounts. Before the Venky's took over. Wether or not they have since paid off the £21m loan we will not know until the June 2011 accounts are published.

Ah yea I get it now. It still says Williams is highest paid director so yea they're outdated aren;t they. Cheers.

[Roverdale]

I've just done a University project on Blackburn Rovers' accounts over the past 6 years.. Makes for interesting reading and really gives you an idea of what it takes to run a football club well. I'm really looking forward to seeing the accounts since Venky's have taken over, I'd imagine they will put a lot of our questions to bed. Although saying that, it could just raise 100 more questions we'll just have to wait and see.