[Archived] Rumour: Venky's To Sell?

[roverandout]

why are people defending the venkys as victims, they are as much responsible for this mess as the bank demanding them paying off their debts. The venkys are the ones who got rid of our one shining beakon in john williams, the venkys are the ones who made promises they cant keep and the venys are the ones who played with a toy they couldnt afford. The bank is only wanting whats owed to them and clearly dont trust that the venkys can pay it off.

[den]

We know for a fact that other clubs have been told by the banks to pay up, the banks are playing hard ball, this couldn't have been foreseen surely Zac?

Shouldn't be a problem to billionaires.

[thenodrog]

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.

How far down the line before the bank withholds the wages?

Memo to Ewood window cleaner and milkman..... better take cash only from now on.

[beerwins]

I must be missing something here, so Venky's did'nt pay the club debt when they took over and now have been ordered to pay the debt with the Jones money? Or is it that Venky's used the clubs overdraft to fund January signings and or other things? If so what?

Either way where is the Jones money then?

[jim mk2]

We know for a fact that other clubs have been told by the banks to pay up, the banks are playing hard ball, this couldn't have been foreseen surely Zac?

Time for that heads in sands photo again. In a former life were you one of the band members still playing as the Titanic went down ?

Moving on, what is known about Bugshan (he / they ?) - good, bad or evil ?

[thenodrog]

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.

AMS would say they were idiots with a death wish. I share his viewpoint.

[A cup of beans]

We know for a fact that other clubs have been told by the banks to pay up, the banks are playing hard ball, this couldn't have been foreseen surely Zac?

Where do the trust stand in all of this?

I know what youre getting at. the overdraft is the trusts debt.

whether the owners couldve forseen this is neither here nor there for me.

if they havent the capital to pay off the overdraft.. then they shouldve never have bought the club.

i thought venkys were "billionaires not millionaires" ???

[yoda]

How can Villa still be in debt after selling Dowing and Young? Sorry if I am missing something?

Stage payments etc, this is where the trust dropped a clanger, they should have insisted that the debt was cleared and not serviced, but they wanted a sale.

Philip and the other 2 musketeers, this is not an accountancy problem, this is the club you supposedly love like the rest of us,

Stand on the wall for a change,

no guts no glory!

[jrabrfc]

Just posted this in the transfer section. Maybe better here:

@Roversinsider has just posted a few tweets describing the current situation.

BANK...have issued Venkys with an order to pay the full £18m 'mortgage' immediately. Club funds stand at close to £0 #Rovers

Says that owners are looking to sell

[tony gale's mic]

We know for a fact that other clubs have been told by the banks to pay up, the banks are playing hard ball, this couldn't have been foreseen surely Zac?

Where do the trust stand in all of this?

According to many the overdraft that Venky's have been required to pay is a separate overdraft taken out in December by Venky's. It's not hard to see where the money might have gone - £5 million on transfers, £2 million on Roque's wages alone, improved contracts, severance fees for Sam and his team, agent fees, trips to Pune for Steve Kean etc etc..

So yes, according to what some are saying - and tbf although philip has been wrong many times in the past it appears he's on the right scent here - this is entirely Venky's fault.

The overdraft which was there under the Trust would still be unpaid even after the Jones money gets paid off.

[thenodrog]

One thing I do not understand - why the drama in the last 2 weeks about, "if this ever comes out...". IT's obviously not good news but I fail to see what would have happened in addition if we had been told this earlier.

Me too EiT. Your mind was made up.

[Gav]

Time for that heads in sands photo again. In a former life were you one of the band members still playing as the Titanic went down ?

Moving on, what is known about Bugshan (he / they ?) - good, bad or evil ?

What a picture, love it, makes me laugh every time I think about it

[CrazyIvan]

According to many the overdraft that Venky's have been required to pay is a separate overdraft taken out in December by Venky's. It's not hard to see where the money might have gone - £5 million on transfers, £2 million on Roque's wages alone, improved contracts, severance fees for Sam and his team, agent fees, trips to Pune for Steve Kean etc etc..

So yes, according to what some are saying - and tbf although philip has been wrong many times in the past it appears he's on the right scent here - this is entirely Venky's fault.

The overdraft which was there under the Trust would still be unpaid even after the Jones money gets paid off.

Just a quick point... trips to Pune for Steve Kean aren't going to cost hundreds of thousands. Just usually a few thousand depending on class of travel.

[Wild Irish Rover]

Seems to me there is no smoke without fire. There has been no clear indication that the current owners have the financial capability to operate at the levels required to run a successful Premier League football club. Everything points to the entire episode having been an embarrasingly poor ego trip for wannabe jet setters. One phrase sums it up for me:

"Champagne tastes, Brown ale pockets"

Rotten, egotistical, corrupt, inept, wasteful, out of touch, cynical, manipulative, destructive, pathetic and vile treatment of a once proud and successful club, it's employees and it's fans.

Nothing less.

[sam_rovers]

Venkys incompetence is baffling- how these people are managing to run other businesses, and supposedly do it successfully, is beyond me

[Gav]

According to many the overdraft that Venky's have been required to pay is a separate overdraft taken out in December by Venky's. It's not hard to see where the money might have gone - £5 million on transfers, £2 million on Roque's wages alone, improved contracts, severance fees for Sam and his team, agent fees, trips to Pune for Steve Kean etc etc..

So yes, according to what some are saying - and tbf although philip has been wrong many times in the past it appears he's on the right scent here - this is entirely Venky's fault.

The overdraft which was there under the Trust would still be unpaid even after the Jones money gets paid off.

I should read back through the thread first, and see whats been said, this story has moved on considerably since Friday, thanks TGM.

[thenodrog]

Because most of it has not come out yet.

Whats the chances of insolvency and beyond?

[Mattyblue]

According to many the overdraft that Venky's have been required to pay is a separate overdraft taken out in December by Venky's. It's not hard to see where the money might have gone - £5 million on transfers, £2 million on Roque's wages alone, improved contracts, severance fees for Sam and his team, agent fees, trips to Pune for Steve Kean etc etc..

So yes, according to what some are saying - and tbf although philip has been wrong many times in the past it appears he's on the right scent here - this is entirely Venky's fault.

The overdraft which was there under the Trust would still be unpaid even after the Jones money gets paid off.

So since they bought the club, is it safe to say thaey have not put in a penny of their own money?

[tony gale's mic]

Just a quick point... trips to Pune for Steve Kean aren't going to cost hundreds of thousands. Just usually a few thousand depending on class of travel.

True, but it all adds up. I'm sure there's all sorts of other costs we don't know about which wouldve cost a few thousand each too.

[magicalmortensleftpeg]

So the money Venky's initially earmarked for transfers are now going to the bank. So we're left with no incoming players this window. Therefore the worst case scenario is that we go into the season with the squad as it is at the moment possibly minus Samba. Bad news.

I have to say im not entirely comfortable with being sold to someone else who, although clearly has money, but may have very little clue as to how to run a football club. Out of the frying pan and all that.

Right now we need money, but even more then that we need guidance and a cohesive management structure. We need someone who can get a grip and knows how to operate a football club. Venky's cant do it, but who's to say the next owners could do a better job.

[CrazyIvan]

True, but it all adds up. I'm sure there's all sorts of other costs we don't know about which wouldve cost a few thousand each too.

I agree but in the scale of things, along with other costs, that particular expense is less than a drop in the bucket. Someone commented that it would have cost a million or so for Kean's trips. That's so wide of the mark and was pretty obviously used as a way of doing a bit of Kean bashing (and spreading the blame) when it's not really very relevant and disingenuous.

[thenodrog]

But we can't if we have to pay off the overdraft first, yes?

A blind man on a galloping horse could surely see that. Gav if the bank wont sanction anymore spending then a. How the hell do we sign anybody?

b. What sort of idiot would sign for us?

Honestly this place is like a bloody creche at times.

[tony gale's mic]

I have to say im not entirely comfortable with being sold to someone else who, although clearly has money, but may have very little clue as to how to run a football club. Out of the frying pan and all that.

No money vs and no clue as to how to run a football club, versus money and no clue how to run a football club.

I know what I'd prefer - it's a no brainer.

In some ways I hate saying this since I despise City, but do you think Sheik Mansour has that much clue as to how to run a football club? No, but unlike Venky's he a) had lots of money to spend on the club and b ) took a back seat and let others run the club.

Being well run was absolutely crucial to Rovers in the John Williams era since we had very little money, but IF this Bugshan group were to take us over and IF they were prepared to invest a decent amount into the team (doesnt need to be £300 million), then we will attract managers and administrators who do know how to run a football club. And as long as they let those in the know do their job (unlike Venky's), we would be in a much much better position even if they don't throw vast amounts of cash at the team.

[philipl]

Whats the chances of insolvency and beyond?

Rovers are not in imminent danger of insolvency given the playing and non-playing assets the club holds. Some players can be sold quickly.

If Roversinsider is correct, this is mind boggling incompetency on the part of the Pune bean counters who now 100% control and micro-manage Rovers books of accounts.

What I have heard is that assigning the Phil Jones transfer made Barclays happy but perhaps Roversinsider has better and more up-to-date information.

The Trust overdraft is subject to an agreement with Venky's London under which they pay it down over three years. If that is not being honoured and Barclays really have gone macho com macho then Barclays could seize their shares in Rovers to pay off the debt.

If they are in that much trouble then we are most certainly up for sale and it is anyone's guess who they would sell us to. Incidentally, a sizeable hole in Rovers cash was opened up by finishing a lowly 15th with loss of £800k per place prize money seriously reducing the Sky handout at the end of May.

The remaining bad news not in the public domain now is not primarily of a financial nature.

[thenodrog]

The snippet I've been passed isn't something that could not have been foreseen Matty, simple as that, and doesn’t jeopardise the club in my opinion. That said we need to strengthen the side and quick, so if you see relegation as jeopardising the club then that’s your opinion, but its not mine.

Philipl has been alluding to problems from day one, this snippet wasn’t an issue on day one, so if philipl is correct, then other stuff has yet to come out, or was philipl munching on sour grapes from day one, and stuff has broken since? I’ve no idea to be honest.

But we can't if we have to pay off the overdraft first, yes?

A blind man on a galloping horse could surely see that. Gav if the bank wont sanction anymore spending then a. How the hell do we sign anybody? No selling club will deal will they?

b. What sort of idiot would sign for us if we cannot pay his wages?

Honestly this place is like a bloody creche at times.