[Archived] Podcast 14

[BRFCS Content]

In the 14th BRFCS podcast, produced by J*B, Wen Y Hu is joined by Kamy, Philipl and Paul to discuss the Chelsea game, the banner ban and subsequent protests, as well as an analysis of new Venky’s London accounting documents and much more

Note by Glenn: Sorry the audio isn’t up to the usual quality, the recording was taken off Skype and we’ve cleaned it up as best we can.

Podcast 14

[riggers77]

In the 14th BRFCS podcast, produced by J*B, Wen Y Hu is joined by Kamy, Philipl and Paul to discuss the Chelsea game, the banner ban and subsequent protests, as well as an analysis of new Venky’s London accounting documents and much more

Note by Glenn: Sorry the audio isn’t up to the usual quality, the recording was taken off Skype and we’ve cleaned it up as best we can.

Podcast 14

It doesn't seem to be working?

[LeChuck]

Nice of Eddie to do the intro jingle for you guys.

[imy9]

Respect to you guys for a great podcast.

Phillip, credit where it's due you come across very well.

I do not however feel that there is a viable alternative to Venkys. A lot of people like to talk but let's see if any of the interested parties put a bid in for the club.

[jannerman]

First time I've listened to a podcast fully now I've worked out how to get them on the phone - good job!

Have to say tho, if it is really all about the money....very very sad if true

Still, there is some optimism, we live in hope!

[Miker]

Listening now, I have today received more information about our current situation, which sounds quite dire and together with the information I'm hoping to get from the podcast, I have a couple of questions to ask.

[philipl]

Respect to you guys for a great podcast.

Phillip, credit where it's due you come across very well.

I do not however feel that there is a viable alternative to Venkys. A lot of people like to talk but let's see if any of the interested parties put a bid in for the club.

Thanks imy.

There is a rapidly developing situation. Ask me at 10.49 on 7 November whether there is a viable alternative and I'd have to say I don't know for sure but I know what my hunch is and that is yes. The point I am making is that in the world of corporate deals things don't stay constant and the runners and riders of eighteen months ago are totally different from the runners and riders of today. The horse race metaphor is appropriate as horses get withdrawn, some don't finish, the leading racing positions change and the race is run pretty quickly.

There are some stunning rumours circulating on twitter last night and this morning but they have little substance as far as I am concerned.

[Amo]

Great listen, guys! Well played by all of you.

To be honest, we're stuck with Venky's for richer or poorer. We had enough 'interested parties' under The Trust and look who've ended up with. I hope this doesn't unduly raise people's hopes of being saved from our Indian overlords.

[J*B]

Nice of Eddie to do the intro jingle for you guys.

Thanks a lot Eddie

[martmitch]

good work guys, first time I've listened to the podcast and thought it was very good

[den]

First podcast I've listened to for a while. Much credit to the people taking part and the people making it possible.

Obviously, the biggest talking point is about the second mortgage facility. Philipl - would it be correct to say, that the higher the facility [£100m] - the more the bank charges will cost to set this up? If so, then it would appear to me [who knows nothing about the world of finance] that Venky's intend to use a large proportion of that facility. In other words, if it is the case that it costs more to borrow more, they aren't going to be taking a £100m facility if they only need £20m. Hence, the possibilities that they are borrowing money under BRFC's security for other business interests. Either that, or they're burning the cash down at Ewood.

In round figures, what are the costs of setting up a £100m borrowing facility?

Apologies if you answered that in the podcast. 1 hour is a lot to take in, in one episode.

[ElTwis]

I agree, excellent podcast, I really enjoy listening to the views of people clearly experienced in the world of finance.

That said, I still find it hard to believe that a)venkys will sell, and anyone would buy into a club with such obvious issues both on and off the field.

[AllRoverAsia]

A quite stunning Podcast.

[booth]

Very very good podcast with some very very good points raised.

As Phil said, the club have foregone an organized protest to a disorganized rabble with their dirty tactics at the weekend. Only they can be blamed if things get nasty at some point. These people who say the protests are bringing the club into disrepute need their heads feeling. Surely the honesty and respect shown has been unprecedented. The idea being that if protests are going to happen, they should be peaceful. You will certainly see disrepute if you gag the fans, and leave it to spontaneous anger.

Interesting about the people interested in buying the club. If anyone wants to pm me with details about who it is I'd appreciate it

[Mattyblue]

Love the accent Phil, Those rrrrrrrrr's gives your Lankyness away!

[glen9mullan]

Another great podcast and everything was 100% spot on bar the Clement spat, it was with another member of non-playing staff who is more PR related than football related

[Mike Graham]

Great podcast, thanks guys!

[seanc88]

Great podcast as usual. Soul destroying information but I appreciate being able to hear the truth.

[philipl]

First podcast I've listened to for a while. Much credit to the people taking part and the people making it possible.

Obviously, the biggest talking point is about the second mortgage facility. Philipl - would it be correct to say, that the higher the facility [£100m] - the more the bank charges will cost to set this up? If so, then it would appear to me [who knows nothing about the world of finance] that Venky's intend to use a large proportion of that facility. In other words, if it is the case that it costs more to borrow more, they aren't going to be taking a £100m facility if they only need £20m. Hence, the possibilities that they are borrowing money under BRFC's security for other business interests, is raised. Either that, or they're burning the cash down at Ewood.

In round figures, what are the costs of setting up a £100m borrowing facility?

Apologies if you answered that in the podcast. 1 hour is a lot to take in, in one episode.

Yes, it must have cost a fortune to set up that facility, not least after the way the previous one expired leaving the bank having to get a bit heavy with the club.

You only have a facility for what you could foreseeably need- the bank is currently in a position that it might need to move most of the £100m to Rovers at Rovers' call so many £10s of millions are on the short overnight market to cover that possibility rather than committed longer term elsewhere at what normaly is a higher yield. One way or another, Rovers will be paying for that facility to make it worth the bank's while to invest its money overnight like that.

So whilst it is best to ask for more than you need in the good times, asking for more than is sensible for a reasonably rainy day is a mug's game. If Rovers have a £100m facility, I'd guess they think they need at least £60m of it.

What for is the huge question as I can see no footballing reason the club could have spent so much (£100m+) in less than a year even if Jerome Anderson had syphened off his agent's ransome.

[Guest Wen Y Hu]

Another great podcast and everything was 100% spot on bar the Clement spat, it was with another member of non-playing staff who is more PR related than football related

Thanks for the correction, Glen. I'll be happy to mention this in the next podcast to put the record straight.

[Majiball]

First podcast I've listened to for a while. Much credit to the people taking part and the people making it possible.

Obviously, the biggest talking point is about the second mortgage facility. Philipl - would it be correct to say, that the higher the facility [£100m] - the more the bank charges will cost to set this up? If so, then it would appear to me [who knows nothing about the world of finance] that Venky's intend to use a large proportion of that facility. In other words, if it is the case that it costs more to borrow more, they aren't going to be taking a £100m facility if they only need £20m. Hence, the possibilities that they are borrowing money under BRFC's security for other business interests, is raised. Either that, or they're burning the cash down at Ewood.

In round figures, what are the costs of setting up a £100m borrowing facility?

Apologies if you answered that in the podcast. 1 hour is a lot to take in, in one episode.

Were has the figure of 100M come from???????????????

I hope that's not how much we have access too as that's just a ludicrous amount for a club of our stature.

[booth]

100m, how would you secure that amount of money?

[philipl]

Were has the figure of 100M come from???????????????

I hope that's not how much we have access too as that's just a ludicrous amount for a club of our stature.

The club has given the bank the security over central income (ie the PL payments) for 2011/12 and all future income in future seasons.

If you take the minimum income Rovers are certain to receive to be payment for coming 20th this season under the new media contracts and the new parachute payments then the Rovers have given Barclays security worth approx £100m when the mortgage was signed.

It certainly does not follow that the entirety of the value of the surety has been borrowed but I guess it gives headroom for up to £60m to be borrowed from the bank.

[AllRoverAsia]

The club has given the bank the security over central income (ie the PL payments) for 2011/12 and all future income in future seasons.

If you take the minimum income Rovers are certain to receive to be payment for coming 20th this season under the new media contracts and the new parachute payments then the Rovers have given Barclays security worth approx £100m when the mortgage was signed.

It certainly does not follow that the entirety of the value of the surety has been borrowed but I guess it gives headroom for up to £60m to be borrowed from the bank.

I followed most of your very clear and detailed explanation on the Podcast - the burning question is whatever do they want it for? When you look at the overall company ownership structure it is not unreasonable to believe that the Raos are borrowing against BRFC 'assets' to fund their UK & European Xprs chicken ventures.

[only2garners]

I followed most of your very clear and detailed explanation on the Podcast - the burning question is whatever do they want it for? When you look at the overall company ownership structure it is not unreasonable to believe that the Raos are borrowing against BRFC 'assets' to fund their UK & European Xprs chicken ventures.

That's almost certainly not true. They have no plans to expand into Europe beyond maybe a couple of stores in Blackburn and London as they cannot import their chicken from India into the EU. Of course it could be for other expansion but not into Venkys Express outlets over here.