[Archived] Our Debt

[den]

The most sensible post you have made for months Den! <_<

Yeah.

I just asked a question and quickly realised it was a dumb question. Totally out of my depth on this one. I'll leave it to others!

[thenodrog]

Another key factor for me is why have they HAD to BUY the silence of the former employees, if you have done nothing wrong you do not need to purchase the silence of the staff you are letting go.

Anybody know if there are a. gagging orders and b. how long these gagging orders are for? An inside view from a previous employee of note might be a taj more interesting than listening to some random comedien and Simon Garner's opinion of Jim Iley and how he scored 9 in a match for the Prison X1 after coming on as an 85th minute sub at the BRFCS 'do' at Blackburn GC.

[longsiders1882]

Have they paid the £10m Glen or is it a case of selling Samba etc ASAP to cover that?

The game was up when Jerome made that incredible speach which the world and his dog saw through yesterday, "it's not my fault guv'nor, anyone but me, I've not even been involved for a year but please ask me all about it Sky for 20 minutes".

Profit is an important figure but you do not take profit to the bank - you only take cash !!!

In my time, I have seen £millions of prior years' profit wiped out by bad debt provisions and write-offs !!!

Turnover is vanity, profit is sanity but cash is king!

[thenodrog]

I was told last night that Nigel Haworth (Northcote Manor, and Rovers catering) has just been out to Poona to "have a go" at the Venkys!!!

Has any one else picked this up?

He'd be better going public on Saturday Kitchen with a new dinner menu of 'Pune Juice aperatif, a starter portion of Toad in the BrockHole and followed by a main course of Blackburn Rovers Hotch Potch with Ewood Mess and a HardCheese Board to finish.

Taxi.......

Turnover is vanity, profit is sanity but cash is king!

For ever and ever, Amen.

[K-Hod]

What worries me is that we turned a profit in the summer transfer window following the sale of PJ, and yet the latest accounts seem to reveal an unbelievable level of debt?

What in god's name have they been spending their money on?

Apart from hush money to ex-employees whose services were incorrectly dispensed of, of course!

[Gav]

Don't know what you're all worried about, we've tabled a bid for Andy Johnson you know, 60k a week he's on apparently, so we must have money

Everything in the gardens rosey surely, no then again we need to stop goals going in not score them even if we had money

KEAN OUT

VENKYS OUT

AGNEW OUT

ANDERSONS A ****

[bob fleming]

Indeed Longsiders

The Agent doth protest too much, methinks.

[roverandout]

miker, stop talking ######, maps, sod off!!!

[phili]

Looks all too horrifically possible.

The detereoration in the critical numbers for Rovers are terrifying.

The current ratio of current assets to current liabilities has halved in one year from 0.36 to 0.17.

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign. The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash.

The other utter horror story is the overdraft looked at in relation to owner's capital and bank movements.

Opening overdraft at 30 June 2010 £14m

Actions required by the Trust at the time of sale:

Injection of new share capital £10m

New shareholder's loan £5m

Pay off the overdraft £14m

Total positive cash effect £29m

Excluding player trading, we only lost £4.2m. Adding in the hugely suspect player trading that figure grows to £18m loss.

So being a simple soul, I'd expect the Rovers' year end cash balance to be around £9m POSITIVE.

Instead we have an overdraft of £21m

I simply do not understand where the £30m difference in cash has disappeared to. These accounts do not make any sense to me especially as the majority of the player trading loss this year is on the face of it made up of non-cast amortisation provisions.

Also the accounts of Venkys London Ltd are going to be interesting. Alot of football consultant payments may well have been paid through this as they were advising Venkys and not the club and therefore not put through the club accounts etc.

Also we know that £10m of shareholder capital was injected into Rovers from Venkys London Ltd, but where did this capital come from? I suspect from debt raised from the assets owned by Venkys London Ltd which would be the assets of the club. If that is the case you can see why Barclays want £10m paid back pretty damn quick.

Also we know that the mortgage with £100m of securitisation was taken out in the summer but how much has been used, and for what? The big question is how much football debt do we have when we enter administration?

If the auditors have seen cashflow projections for the next 18 months as the accounts say which would include the summer transfer activity, sky money etc (lets say £60-70m of cash flow) and are still saying we need a significant cash injection to continue, what on earth have we spent money on?

[den]

Chicken outlets?

[3rdpillar]

Expenses...

[BPF]

Also, we've been told all of these sorts of rumours before so i'm with kamy and see how things transpire at the end of the window. One thing is for sure, the "early" business at the start of the window hasn't come into fruition has it?

The story of the Venkys takeover...

'Let's see how things are at the end of the next window...'

[BPF]

Miker,

Your posts are downright offensive to the real fans of this club. What you are doing is telling people that they are worrying about nothing and then backing it up with an inaccurate assessment of the accounts and a feeling that the owners are good people!?

For the first time in our history it does not matter what is happening on the pitch. It honestly doesn't matter if we stay up this season or not. If it isn't this season, then it will be next. We are being dried to death by Venkys like they have done with other Balaji purchases.

From the very bottom of my heart, to all at Venkys and the people that engineered the takeover of the club I wish nothing but misery on you and everyone that has the misfortune of calling you family.

[EwoodDawn]

Has anyone heard anything re. this rumoured d-day of tomorrow?

[RTM08]

For the first time in our history it does not matter what is happening on the pitch. It honestly doesn't matter if we stay up this season or not. If it isn't this season, then it will be next. We are being dried to death by Venkys like they have done with other Balaji purchases.

May I ask what other purchases Balaji has messed with? I don't know much of his past.

[Ripleys love child]

His bollywood venture went into administration

[Majiball]

Has anyone heard anything re. this rumoured d-day of tomorrow?

Care to expand????

[RTM08]

I wonder who was checking their financial history when the takeover was going through and saying "Ooh, his previous toy he had with his spare millions crashed and burned. Top candidate for ownership!"

[Ripleys love child]

It's obvious they should never had passed the fit and proper persons test to own a club, absolute joke.

[Mercer]

Has anyone heard anything re. this rumoured d-day of tomorrow?

Some speculation that Barclays had extended by two weeks deadline for the £10m payment. That falls tomorrow.

[technoprisoners]

Some speculation that Barclays had extended by two weeks deadline for the £10m payment. That falls tomorrow.

Can anyone explain the consequences of the Bank getting heavy please, apart from the financial issues? Are we at risk of a points deduction if we don't meet their demands?

[Tom]

His bollywood venture went into administration

I thought it had but I thought I saw adverts for it and people wearing the logos of it out in Pune but it could have been something else

[bob fleming]

Some speculation that Barclays had extended by two weeks deadline for the £10m payment. That falls tomorrow.

That's the one. I hate crap like this, it's just a rumour that the Mrs saw on Facebook. Still anything is possible with these jokers involved.

[philipl]

I thought it had but I thought I saw adverts for it and people wearing the logos of it out in Pune but it could have been something else

The Bollywood company is still listed in the list of VH group companies.

As far as I am aware. Mrs Desai intervened to wind it up and stop it losing family cash. I have heard this involved some form of administration.

It is not unusual in the film industry to keep a company in place which does nothing but receive fees relating to whatever residual percentage interest in old films revenues that are still coming in. I think that is what the Balaji Bollywood company is reduced to just now.

[Mercer]

That's the one. I hate crap like this, it's just a rumour that the Mrs saw on Facebook. Still anything is possible with these jokers involved.

Two different people mentioned this to me on Saturday and they don't use Facebook !!!!!!!!!!!!