[Archived] Rumour: Venky's To Sell?

[PAFELL]

In Spain at the moment. I am back on Tuesday, will be checking stuff out on Wednesday.

RE: selling the club, my source insists that this is on the cards. Am going to talk to Venky's on Wednesday.

Lets hope they sell, before it is too late.

[cruz]

Surely a sale cannot be done before the window closes?

[PAFELL]

Surely a sale cannot be done before the window closes?

Depends on how long talks and negotiations have been going on I suppose. Also who is interested in buying the club and their knowledge of the club etc.

[philipl]

Blackburn are facing a transfer crisis - with their Indian owners told to cut the club’s overdraft before they can buy

Read more: http://www.mirrorfootball.co.uk/transfer-news/Blackburn-Rovers-face-transfer-crisis-as-Phil-Jones-to-Manchester-United-money-used-for-overdraft-and-Chris-Samba-could-leave-for-Arsenal-or-Tottenham-Hotspur-article771592.html#ixzz1SP3RenvG

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Well most of the people who don't believe me hang on nicko's every word don't they?

Nicko positions Barclays as the evil force in this but that part of his story is a bit of a nonsense.

The truth is that the Trust's £17m overdraft got transferred to Venky's London as a CONDITION of the sale of Rovers. There are plenty of Venky's statements which confirm this.

The NEW overdraft at Rovers is precisely that- a new overdraft caused by Venky's own ignorance and gross maladministration. Any Bank is going to take one look at Venky's mismanagement (including failure to notice the mortgage was expiring) and rate any further loan as extremely risky indeed.

However, the net effect is that Rovers are in precisely the mess the Trust's structure of the sale to Venky's was designed to avoid.

Venky's are simply too incompetent to own a football club.

[philipl]

Surely a sale cannot be done before the window closes?

Very feasible to be done next week if both sides have the will to do it.

My tip would be first week of August if pushed.

[Ripleys love child]

Who would buy us though? Any truth in the Saudi bughsan rumour???

[chaddyrovers]

Well most of the people who don't believe me hang on nicko's every word don't they?

Nicko positions Barclays as the evil force in this but that part of his story is a bit of a nonsense.

The truth is that the Trust's £17m overdraft got transferred to Venky's London as a CONDITION of the sale of Rovers. There are plenty of Venky's statements which confirm this.

The NEW overdraft at Rovers is precisely that- a new overdraft caused by Venky's own ignorance and gross maladministration. Any Bank is going to take one look at Venky's mismanagement (including failure to notice the mortgage was expiring) and rate any further loan as extremely risky indeed.

However, the net effect is that Rovers are in precisely the mess the Trust's structure of the sale to Venky's was designed to avoid.

Venky's are simply too incompetent to own a football club.

Looks like Philipl was right!

How can Venky's not understand football rules or UK business law or the terms of agreement of a bank loan/mortgage.

I'm sorry to say this, time for Venky's to start to spend their own money into the club or TIME FOR VENKY'S TO GO!!!

[hawkiiz]

But

Where did the money from this new loan go? And even if we only got some of the PJ money in, what we got could be used to pay off the loan? Also, could Rovers not demand the whole PJ fee being paid in one big go? And where is the Premier League money (and tv money).

And have not Venkys tried to put in real money after the loan was taken?

[RibbleValleyRover]

The main problem as I see it is if Venky's are forced to sell the club quickly due to external pressures i.e. from the banks then it's likely they will not scrutinise any prospective owners bid and plans as much as they would had if they had time to sell. In most situations I can think of when a club has been in some trouble and has sold to the first bidder that came along they have ended up in even more financial trouble afterwards.

There is a real fear in my mind we could see a Pompey mk2 on the cards if this info is correct.

[broadsword]

So how much is owing on the facility is they used £8m to pay some of it off and now the bank is asking for a further reduction?

The main problem as I see it is if Venky's are forced to sell the club quickly due to external pressures i.e. from the banks then it's likely they will not scrutinise any prospective owners bid and plans as much as they would if they had time to sell. In most sitations I can think of when a club has been in some trouble and has sold to the first bidder that came along they have ended up in even more financial trouble afterwards.

There is a real fear in my mind we could see a Pompey mk2 on the cards if this info is correct.

Surely they won't give a toss who they sell us to - they're not fans.

Wonder what will happen to the Blackburn Rovers Pune Academy now, eh?

[greco]

Well most of the people who don't believe me hang on nicko's every word don't they?

Nicko positions Barclays as the evil force in this but that part of his story is a bit of a nonsense.

The truth is that the Trust's £17m overdraft got transferred to Venky's London as a CONDITION of the sale of Rovers. There are plenty of Venky's statements which confirm this.

The NEW overdraft at Rovers is precisely that- a new overdraft caused by Venky's own ignorance and gross maladministration. Any Bank is going to take one look at Venky's mismanagement (including failure to notice the mortgage was expiring) and rate any further loan as extremely risky indeed.

However, the net effect is that Rovers are in precisely the mess the Trust's structure of the sale to Venky's was designed to avoid.

Venky's are simply too incompetent to own a football club.

Do you know how big the new overdraft is.?

[Parsonblue]

Now we know why the order of the day is free transfers rather than the multi-million pound transfers that Kean talked about. The weekend games showed just how much we are in need of some serious rebuilding of the playing staff and clearly there isn't going to be the money to do it. If Samba is sold, and his performance on Saturday suggested that his mind is already wandering to pastures new, we are going to be in serious trouble.

With less than a month before the start of the season, if the financial situation is as serious as it would appear it's going to be a long hard winter. The present squad is unlikely to be good enough to keep us up, particularly as we have lost two of our better players in Phil and Jermaine Jones, and I fear the likes of Reibero and Anderson are hardly going to lift the gloom. It really is time for the Rao family to put up or shut up. If they have the money then bring in some real quality players - they don't need to spend a small fortune, but they do need to invest something. If they don't have the money and they can't find a buyer then I guess the future is pretty bleak.

[RibbleValleyRover]

Surely they won't give a toss who they sell us to - they're not fans.

Wonder what will happen to the Blackburn Rovers Pune Academy now, eh?

Not being fans is a valid point and that would impact on their judgement. I would be a lot more confident of them finding a suitable buyer if the club was stable both financially and in regards to the manager/playing side aspect.

[adsfortheblues]

Ive been told that it's barclays plc who have pulled the plug on the overdraft and have also done the same with everton and 2 other premiership clubs. Dave whelans prediction could come true when he said eventually something like this would happen and it would be the begining of the end for many premiership clubs.

Positive note I was also told by the same person that the owners are trying to push through a deal with some Saudi consortium as they have realised they do not have what it takes to run a premier league club.

(not claiming to be in the know at all here)

[chaddyrovers]

So how much is owing on the facility is they used £8m to pay some of it off and now the bank is asking for a further reduction?

About 10 million pounds still to pay off. the overdraft was 18 million pounds when venkys took over.

Could the bank not take over the club and find us a buyer like RBS did with Liverpool. This could be the best way to get a proper owners in like Martin Broughton did when he sold to New England Sports Ventures. Now look at Liverpool with proper owners spending money and have excellent owners in John Henry and Tom Warner.

[RibbleValleyRover]

So we could see Samba being sold to pay the rest off? If you factor in that Arsenal were only willing to pay around £12m for him, Spurs even less when you factor in possible players added to the deal we pretty much will be selling a player for nothing? Virtually no money from his sale going into the transfer kitty?

[broadsword]

About 10 million pounds still to pay off. the overdraft was 18 million pounds when venkys took over.

Think the facility would have changed. It might have gone up or down before the Jones fee went to pay part of it off.

[philipl]

Answers to all the questions above are in this thread already but here goes.

The NEW overdraft facility of £18m was taken out because Venky's didn't understand PL cashflow- Sky money comes in six monthly. If the Trust were running the show, the overdraft would have been paid off out of the May Sky payment but Venky's blew money on sacking Sam, listening to Anderson, paying significant wage increases and coming 15th (less prize money).

The sale of PJ is for the same as the overdraft value- we will probably find the PJ deal has been taken over by Barclays.

The Saudis are Bugshan as far as we know. As I wrote previously, a sale is a leap in the dark, no sale is certain relegation.

Balaji parked £49m of his own cash in the club during the spring which gave everyone (including me) a safe feeling we'd be OK if we went down. It also conned Kean and Kentaro into thinking the good time transfers were about to roll. The reality was that it was there to buy Neymar or someone of his ilk and it presumably disappeared when Mrs D hit the reality button.

[Antgrad]

About 10 million pounds still to pay off. the overdraft was 18 million pounds when venkys took over.

As philipl points out THAT overdraft was transferred to Venkys on condition of the sale so has nothing to do with Rovers now.

The overdraft that needs paying off/reducing now is one created by Venkys from transfers/loan fees made in January without putting any money in and paying off all these people that have left the club.

[philipl]

About 10 million pounds still to pay off. the overdraft was 18 million pounds when venkys took over.

Could the bank not take over the club and find us a buyer like RBS did with Liverpool. This could be the best way to get a proper owners in like Martin Broughton did when he sold to New England Sports Ventures. Now look at Liverpool with proper owners spending money and have excellent owners in John Henry and Tom Warner.

Sorry Chad, that is wrong- my posts explain what happened.

[Lurid Coat]

Very feasible to be done next week if both sides have the will to do it.

My tip would be first week of August if pushed.

Do you think the most likely outcome is that Venky's will sell? I hope and pray that the deal won't be jeopardized due to the stubbornness of the Barry White lookalike (I've heard that he's the only one not keen on selling).

[BPF]

I find it truly incredible that with cold, hard facts in front of them, people are still looking for the positives in Venkys.

Philip, myself and many others have known how bad the situation is for weeks now and there is more to come yet. In no uncertain terms:

If Venkys do not sell in the club, then the best case scenario we can hope for is a return to the days long before the Walker era.

The most annoying aspect of this is that these @#/?s tricked us, numerous times.

[chaddyrovers]

so it is Venky's holding company that now has the loan that was previous the walker's family loan?

I don't get why the owners just didn't pay the loan off when they bought the club. I know, that is far too easy to do.

[AggyBlue]

In Spain at the moment. I am back on Tuesday, will be checking stuff out on Wednesday.

RE: selling the club, my source insists that this is on the cards. Am going to talk to Venky's on Wednesday.

I hope your first question will be 'why did you sell the club'

[chaddyrovers]

The most annoying aspect of this is that these @#/?s tricked us, numerous times.

I guess you mean venky's there BPF?

I totally agree with you.

I now reckon they will sell straight after the Asia Trophy is finish.