[Archived] Rumour: Venky's To Sell?

[Blue n White Rover]

Taken this from Roversinsider, which kind of ties in with what BPF was saying.

RAO DEPOSIT...£49m WAS deposited into the account and swiftly removed when it became apparent a marquee signing was unrealistic

So, they do have the money available if such sums were being transferred in and out the bank accounts.

If this is to be believed, then surely they would cough up the £18m rather than Barclays taking shares within the club?

Pay it off with their own personal wealth, and that allows us time to find a new mortgage lender, or just swipe the debt out completely, which in turn would surely reduce interest repayments?

[SIMON GARNERS 194]

Taken this from Roversinsider, which kind of ties in with what BPF was saying.

RAO DEPOSIT...£49m WAS deposited into the account and swiftly removed when it became apparent a marquee signing was unrealistic

So, they do have the money available if such sums were being transferred in and out the bank accounts.

If this is to be believed, then surely they would cough up the £18m rather than Barclays taking shares within the club?

Pay it off with their own personal wealth, and that allows us time to find a new mortgage lender, or just swipe the debt out completely, which in turn would surely reduce interest repayments?

Why would they do that when they can sell off one of the clubs assets to virtually cover it .......eeerrrrrr oh my!

[BangkokRover]

Taken this from Roversinsider, which kind of ties in with what BPF was saying.

RAO DEPOSIT...£49m WAS deposited into the account and swiftly removed when it became apparent a marquee signing was unrealistic

So, they do have the money available if such sums were being transferred in and out the bank accounts.

If this is to be believed, then surely they would cough up the £18m rather than Barclays taking shares within the club?

Pay it off with their own personal wealth, and that allows us time to find a new mortgage lender, or just swipe the debt out completely, which in turn would surely reduce interest repayments?

Or sell the club

[davulsukur]

this is all very worrying but what i dont get is why venkys don't just pay the bank out of their own personal wealth. does'nt make any sense.

Because they don't want too?

Its all very worrying, we are a million miles away from last November/January and even the start of the summer transfer window. There was nothing but positive talk and stories flying around.

Talk is cheap it seems.

It is now surely beyond any Rovers fan to have the undying optimism some have had in the past for our owners?

[Miker]

this is all very worrying but what i dont get is why venkys don't just pay the bank out of their own personal wealth. does'nt make any sense.

Their business plan from the very beginning was to buy young players, develop them and eventually sell them on for big fees and keep the club self-sustainable. This has always been in the case. In fact the board's darling nicko stated this, virtually as fact, back in November. So why this current article of his is being reported as news is beyond me. The owners have never had a plan to pump their own personal wealth into the club and even if they would, it wouldn't be to the extent of making 10mil+ signings.

[modes98]

So, they do have the money available if such sums were being transferred in and out the bank accounts.

If this is to be believed, then surely they would cough up the £18m rather than Barclays taking shares within the club?

Pay it off with their own personal wealth, and that allows us time to find a new mortgage lender, or just swipe the debt out completely, which in turn would surely reduce interest repayments?

So then take the next logical step after "they don't want to pay off the debt" and look at the reasons why they wouldn't.

They have to be seriously considering a sale, should there be a buyer/offer.

If not the brothers have been called into see Mrs D, who has taken over, and is trying to manage the problem seemingly without much success.

They need to get some money into the club now.

[Gav]

Philip, what happened with the accountants? We were told Venkys had changed Rovers' accountants and allegedly they had gone thoroughly through the accounts etc before they took over.

Well, if one thing is for sure, Rovers fans have always stuck together when the chips are down. If ever there was a time for that, this is it.

Wasn't it mentioned on here that venkys allegedly discovered some murky stuff when they took over? Possibly money related? That they’d not been made aware of before buying the club?

[howzat]

this whole mess stinks to high heaven, There is no doubt venkys have the cash to pay the bank so why are they not doing this, if there not prepared to invest then why did they buy the club in the first place.

[Blue n White Rover]

Why would they do that when they can sell off one of the clubs assets to virtually cover it .......eeerrrrrr oh my!

I guess so, however excuse my ignorance in this whole scenario.

The bank want £18m paying to them immediately. We have just received £20m-ish for P.Jones. I understand that United WILL NOT pay this amount up front, however, in installments. So for the time being, just pay it out your personal account, and whenever the P Jones money comes in then withrdraw your capital introduced, as drawings?

[howzat]

quick question if we were to sell samba would that money be made avaliable to buy players with?

[BangkokRover]

Their business plan from the very beginning was to buy young players, develop them and eventually sell them on for big fees and keep the club self-sustainable. This has always been in the case. In fact the board's darling nicko stated this, virtually as fact, back in November. So why this current article of his is being reported as news is beyond me. The owners have never had a plan to pump their own personal wealth into the club and even if they would, it wouldn't be to the extent of making 10mil+ signings.

So why mention Beckham, Kaka and everyone else?

[mike at picture]

Before or after they went bang?

Before

[BangkokRover]

quick question if we were to sell samba would that money be made avaliable to buy players with?

NONE!!

We have no money

Before

Well maybe this is a slow ball and more will be revealed tomorrow?

[TimmyJimmy]

Why is nothing being reported about our position by

Sky, BBC, TalkSport or a Broadsheet newspaper?

A Premier League club in financial meltdown would be massive news

I think a sense of proportion would come in handy at the moment. What is coming out into the public glare has been known about for many months privately. If it had come out earlier then everyone would have been more restrained instead of whipping themselves into a frenzy over a wished for but totally unrealistic 50M transfer fund. All that has happened here is that something unannounced by the Venkys (ie the 50M available for transfers) is actually not factual. The most Venkys can be accused of here is not managing expectations.

They are individually wealthy (though not when judged by football ownership standards) but corporately they are not and what corporate monies they do have is to be used in support of their other strategic needs in expanding their chicken business globally. The bank is obviously aware of the amount of money in/not in the football club arm and they will not allow Venkys to take zero risk whilst at the same time asking the bank to shoulder all the risk. It's not surprising then that the bank asks for some repayment to keep the risk/reward scales balanced. This is not the same as financial meltdown!

The way around this impase is for the family members to put their own cash in, then the bank will play ball in similar proportion. It seems that Balaji will put some cash in but only for the big prestigious names. They clearly need to reappraise this strategy and their objectives for the club and come to a more realistic funding stream OR stop raising expectations that we are going to be a power in Europe.

In terms of the sale - I've posted consistently that I do not believe that there is any wish to sell by at least one member of the family. It would take a really determined buyer to make a really determined HIGH offer to have any chance of changing this around. If as we are led to believe that Huber sounded out Bugshan over a possible purchase then Bugshan are only loosely motivated to buy. That doesn't amount to a 'determined' bid. I'd be stunned also if Bugshan would consider a joint venture because of other matters that I wouldn't care to raise here.

Taken in the round then I'd say that certain explorations have taken place, but that's it, end of story. Venkys are here to stay, end of story. If Venkys do not want to pump their own private money into the club then we are back to our original understanding that they will trickly 5M'ish into the club each year, again end of story. The banks will ensure that borrowing doesn't get out of line because any banker who lends based solely on the value of the collateral would be shot at dawn. Brockhall should then be safe.

The only constant is change, so this could all be revised the second I hit the <<Add Reply>> button but as it stands now we are owned by the Venkys and they will inject modest sums each year whilst at the same time trying to grow the 'brand' in the background. We're not going bust, we are not going to buy lot's of great players, we are not going to challenge for Europe or for a top 10 finish.

I advocate a resetting of our collective expectations and settle down for a long slow dull ride. They are gambling on slow steady improvement. For me I fear relegation because we need real investment to stay competitive in this league. For that reason I would be overjoyed if Bugshan turned into determined buyers and Balaji et al turned into committed sellers, but I really don't see it happening.

Big breaths, let's embrace our disappointment, calm down and carry on

[deftangel]

Wasn't it mentioned on here that venkys allegedly discovered some murky stuff when they took over? Possibly money related? That they’d not been made aware of before buying the club?

I think there was one very vague comment in that regard from them that I can't recall exactly but it has to be taken with a huge pinch of salt given the summer. The charitable interpretation of the mortgage in January was that it was only for the short term/cash flow. That doesn't tie in with being caught out even temporarily by "unforseen circumstances" let alone the more doom laden scenarios.

[OJRovers]

As bad as it seems as the minute, if we do pay the overdraft off then the club will be completely debt-free, something that not many sides in the PL can say, would you swap our current cashflow issues with Bolton's alledged £80m+ debt??

[deftangel]

So why mention Beckham, Kaka and everyone else?

It would seem one of the brothers was unilaterally a lot more focused on this "marquee signing" idea and more than a bit loose lipped about it. As their objective is largely to grow the Venky's brand I imagine it wasn't rejected out of hand but probably an addendum to the supposed plan.

[howzat]

i don't know if this has been posted but what does everyone make of this. http://www.rovers.co.uk/page/Home

[Blue n White Rover]

As bad as it seems as the minute, if we do pay the overdraft off then the club will be completely debt-free, something that not many sides in the PL can say, would you swap our current cashflow issues with Bolton's alledged £80m+ debt??

This is something I have thought about myself. It would make us debt free, and maybe in the future, if Venkys are to sell, more attractive.

However, paying it off now would seriously jepordise our PL status as we are in serious need of investment in key areas of the field.

[Mattyblue]

Wasn't it mentioned on here that venkys allegedly discovered some murky stuff when they took over? Possibly money related? That theyd not been made aware of before buying the club?

Wasn't that leaked by the ever trustworthy Venky's?

As bad as it seems as the minute, if we do pay the overdraft off then the club will be completely debt-free, something that not many sides in the PL can say, would you swap our current cashflow issues with Bolton's alledged £80m+ debt??

Venky's are only in the process of paying off the EXTRA overdraft they have taken out, not the initial overdraft.

[philipl]

Wasn't it mentioned on here that venkys allegedly discovered some murky stuff when they took over? Possibly money related? That they’d not been made aware of before buying the club?

This was mentioned on the MB, I believe I have an authoritative account of where it came from in the Venky's/Rovers set-up and it is completely untrue.

[Roost]

i don't know if this has been posted but what does everyone make of this. http://www.rovers.co.uk/page/Home

'hopefully have a striker and midfielder in by the end of the transfer window'?

We dont have a prayer if thats all we are officialy now persuing - especially of we now are forced to offload players to repay debts.

What a shambles.

Edit - has this link been edited by Rovers? Unless I am mistaken, it did say 'hopefully', but now says 'fully intend'

[Paul]

i don't know if this has been posted but what does everyone make of this. http://www.rovers.co.uk/page/Home

http://www.rovers.co.uk/page/NewsDetail/0,,10303~2395451,00.html

I think howzat means the link above. Pretty much standard stuff. Nothing gives me any comfort as there is no one left at Ewood that I believe in........................

[koi]

Saves clicking the link:

The board of Blackburn Rovers Football Club wishes to clarify its strategy of optimising the current playing squad in a manner which is sustainable and beneficial to the long term interests of the club and its supporters.

During the close season there is always a frenzy of transfer rumours linking every club in the land with a diverse range of players and we are no exception. We will not comment on such speculation as it will only lead to further press comment but we can assure our supporters that we will only enter into negotiations with other clubs and agents on terms which are commercially viable and are within the market norms accepted by every other club, as we are sure our supporters would demand and expect. We assure you that we will continue to explore all avenues to improve the squad for the sustainable long-term benefit of the club.

We are currently busy exploring the recruitment of a striker and a midfielder - and we fully intend to have both of them in place before the transfer window closes. We will continue to make every effort to bring in the players we feel we need and we ask you, our supporters, to remain patient.

[Blue n White Rover]

i don't know if this has been posted but what does everyone make of this. http://www.rovers.co.uk/page/Home

You have to give credit to Venkys on this.

We fans wanted to know:

UPDATE ON SPONSOR - Club statement released that this should hopefully be concluded within the next few weeks.

UPDATE ON TRANSFERS -Club statement released that we are actively looking for a striker and midfielder. However, will not pay over the odds. Also looking at long term plans, which points to the owners wanting to stay at the club.

UPDATE ON SALE OF THE CLUB - Statement released through the LET that they are not looking to sell.

We wanted answers and we seem to have got them. They are communicating with the fans slowly, but surely.

Patience.