[Archived] Rumours that staff have not been paid

[OJRovers]

They will be using a UK based branch of the state bank of india

Possibly Rovers have outsourced the payroll to them.

Steve Kean did say in his interview the other day that there had been a "Refinancing" at the club. I wouldn't be surprised if they had parted ways with Barclays, both sides would have wanted to get out of that before anything bad happened (calling in the overdraft / having to write off the debt).

If the rumours are true that certain connected senior figures are getting close to one or more of the potential takeover bids, moving the debts to State Bank of India cuts off the chance of the bidders going behind Venkys back with old contacts at Barclays and creating a position where they had to sell. Not good.

[EwoodDawn]

They will be using a UK based branch of the state bank of india

Possibly Rovers have outsourced the payroll to them.

Steve Kean did say in his interview the other day that there had been a "Refinancing" at the club. I wouldn't be surprised if they had parted ways with Barclays, both sides would have wanted to get out of that before anything bad happened (calling in the overdraft / having to write off the debt).

If the rumours are true that certain connected senior figures are getting close to one or more of the potential takeover bids, moving the debts to State Bank of India cuts off the chance of the bidders going behind Venkys back with old contacts at Barclays and creating a position where they had to sell. Not good.

When you google State bank of India MIA (details from Pancini's pay slip), you get versions of this:

Bank: STATE BANK OF INDIA

Bank Branch: MIA ALWAR

Address: M.I.A. ALWAR,DIST ALWAR,RAJASTHAN,PIN 301030

City: ALWAR

IFSC Code: SBIN0004627

MICR Code: 301002074

Phone Number / Email / Manager: 0144-2881837 0144-2881941 IP-303586

Should we be worried?

[yoda]

They will be using a UK based branch of the state bank of india

Possibly Rovers have outsourced the payroll to them.

Steve Kean did say in his interview the other day that there had been a "Refinancing" at the club. I wouldn't be surprised if they had parted ways with Barclays, both sides would have wanted to get out of that before anything bad happened (calling in the overdraft / having to write off the debt).

If the rumours are true that certain connected senior figures are getting close to one or more of the potential takeover bids, moving the debts to State Bank of India cuts off the chance of the bidders going behind Venkys back with old contacts at Barclays and creating a position where they had to sell. Not good.

Well they have parted ways with Northcote Manor, they pulled out last week due to payment problems!

[Ralfinho]

Well they have parted ways with Northcote Manor, they pulled out last week due to payment problems!

Thats possibly why rovers are offering 2-4-1 on hospitality on Sat, to get rid of their stock etc

[Sparky Marky]

Classless...the infrastructure is crumbling. Venkys fried chicken now on the menu in Jacks Kitchen. Mrs Desai Pantry

[AllRoverAsia]

Thats possibly why rovers are offering 2-4-1 on hospitality on Sat, to get rid of their stock etc

I thought that was the Rovers outfield formation for Saturday using what's left after the 'injuries' have taken their toll

[davulsukur]

I thought that was the Rovers outfield formation for Saturday using what's left after the 'injuries' have taken their toll

[Aberdeen Blue]

Classless...the infrastructure is crumbling. Venkys fried chicken now on the menu in Jacks Kitchen. Mrs Desai Pantry

Suits the standard of fare served up by Coco on the pitch

[47er]

If all finance is now directed through India rather than Barclays, is it relevant to compare interest rates? Very low in Britain but very high in India.

Actually went down to 8% yesterday! Is that more of the club's money down the drain?

Also, making a decision like this indicates there is no likely sale soon wouldn't you say?

[67splitscreen]

Companies house records will have to be updated, I assume.

Worrying all future revenue going out of the country (parachute payments) easier to get their hands on I'd imagine.

Wonder what they have used for security?, I believe banks don't like securities off shore, to many loop holes, certainly with the ownership of Ewood and Brockhall in question.

Could Venkys have preferential rates in India = to our own rates.?

To me it does not sound good but then I'm not a financier, Is Karen Silk?. Maybe it's her 'baby' now.

Would trade creditors not have to be informed of changes ?? maybe why Northcote have pulled out, feeling insecure over future/current/outstanding monies.

[purplegrover]

Suits the standard of fare served up by Coco on the pitch

Can't seem to develop a liking for $hit on Toast though....

[dave birch]

The change to an Indian bank, if they are making the payments from overseas, using Indian Rupees doesn't make sense.

The rate over the last twelve months has deteriorated against the GBP by about 10%. (It's gone from about 71 to the pound to almost 82)

They most certainly will be using a GBP account to pay the wages in the UK. Whether that account is based in India, that's another matter.

Additionally, if the amounts are significant, the sending bank, by holding on to funds over night, could make a little bit extra by putting that money on the market overnight.

[Stuart]

It strikes me that moving to an Indian bank may make a takeover bid more complicated. It also suggests Venkys are planning for the long term. (Why won't they just go??)

I'm not going to fall into the trap of thinking that Indian banks are some kind of backwater establishments (they are almost certainly very well run - possibly world class) but does anyone know if they are subject to the same or similar rules and regs to the UK?

Hadn't thought about parachute payments, 67, or the £37m prize money.

Will Venkys ever do ANYTHING positive for this club?

[dave birch]

Stuart, why would a bank be involved in a takeover, other than confirming that a deposit or guarantee had been given.

Any dealings would be between the owners and those wanting to buy, (directly or through some intermediary).

I have a feeling that it's just a matter of trust.... The Venky's don't trust Barclays, for whatever reason....

[gumboots]

Stuart, why would a bank be involved in a takeover, other than confirming that a deposit or guarantee had been given.

Any dealings would be between the owners and those wanting to buy, (directly or through some intermediary).

I have a feeling that it's just a matter of trust.... The Venky's don't trust Barclays, for whatever reason....

cos Barclays don't doff their caps and roll over to do whatever the Rao family want?

[dave birch]

cos Barclays don't doff their caps and roll over to do whatever the Rao family want?

'boots, it might be that the Raos feel that Barclays is too close to "The Establishment"

[Stuart]

Stuart, why would a bank be involved in a takeover, other than confirming that a deposit or guarantee had been given.

Any dealings would be between the owners and those wanting to buy, (directly or through some intermediary).

I have a feeling that it's just a matter of trust.... The Venky's don't trust Barclays, for whatever reason....

The bank would need changing back following a UK takeover - just an added complication.

[Mercer]

cos Barclays don't doff their caps and roll over to do whatever the Rao family want?

+1

[PAFELL]

Companies house records will have to be updated, I assume.

Worrying all future revenue going out of the country (parachute payments) easier to get their hands on I'd imagine.

Wonder what they have used for security?, I believe banks don't like securities off shore, to many loop holes, certainly with the ownership of Ewood and Brockhall in question.

Could Venkys have preferential rates in India = to our own rates.?

To me it does not sound good but then I'm not a financier, Is Karen Silk?. Maybe it's her 'baby' now.

Would trade creditors not have to be informed of changes ?? maybe why Northcote have pulled out, feeling insecure over future/current/outstanding monies.

Do venkys have other businesses outside of India? As I wonder have they done the same banking arrangement, as they appear to have done at Rovers. Just a thought. With the money all in Indian banks, would it not be easier for due dillegence to be carried out if everything was in one place - if they decide to sell?

[Kamy100]

It is very interesting that they have moved finance to via Indian State Bank (if true). Not surprising as the relationship with Barclays has almost certainly broken down. I would say that they will have used the money from the Samba sale and the money from the Phil Jones transfer that is due in June to settle the debt with Barclays.

They probably have secured a lending agreement with the State Bank of India, the interesting thing is that this agreement from my limited understanding of finance would've been secured against Venky's assets in India, also have to remember that Venkentesh was in Dubai at the end of last year so maybe they have secured some additional finance which is also going to be routed via India.

All of this unfortunately point towards what I tweeted earlier this week that Venky's have no intention of selling the club in the foreseeable future, I would also speculate that with relegation we will see a "skeleton" staff at Ewood with major functions such as finance being dealt with in India.

[broadsword]

If you want tickets you'll have to phone up an indian call centre?

[DavidMailsTightPerm]

It is very interesting that they have moved finance to via Indian State Bank (if true). Not surprising as the relationship with Barclays has almost certainly broken down. I would say that they will have used the money from the Samba sale and the money from the Phil Jones transfer that is due in June to settle the debt with Barclays.

They probably have secured a lending agreement with the State Bank of India, the interesting thing is that this agreement from my limited understanding of finance would've been secured against Venky's assets in India, also have to remember that Venkentesh was in Dubai at the end of last year so maybe they have secured some additional finance which is also going to be routed via India.

All of this unfortunately point towards what I tweeted earlier this week that Venky's have no intention of selling the club in the foreseeable future, I would also speculate that with relegation we will see a "skeleton" staff at Ewood with major functions such as finance being dealt with in India.

Kamy - other than the obvious feeling that (as you say) this seems to indicate they aren't giving up Rovers any time soon. Is there any chance that this could be beneficial ?

[The Gull]

I have no qualms with Venkys trying to run the business in the correct manner, reducing running costs and making the business more efficient.

This side of things is understandable and better for the club, if not the supporting workforce, if done properly, but whilst they still bury their heads in the sand over the core part of this business, you know football, I can not trust anything they do.

Their priorities should be to secure the core area of the business and then you tackle the supporting areas that are not detrimental to the performance of the core area.

This is simple business sense and strategy, whether applied to a football club or a factory it is still the same.

These people are supposed to be successful business people but unless a miracle happens, we survive and stay up, they sack Kean and get a decent manager and board in place, and then I cannot see how they will ever justify their business reputation.

A family club like ours was can not survive in top level football any more in my opinion, changes are required to make us a lean, mean fighting machine off the pitch to be able to support the squad on the pitch with funds.

Time will tell but the track record as owners of Rovers so far fills me with trepidation and doubt about their motives.

[Kamy100]

Kamy - other than the obvious feeling that (as you say) this seems to indicate they aren't giving up Rovers any time soon. Is there any chance that this could be beneficial ?

Unfortunately my understanding of finance is not good enough to say if this could be beneficial, I was however told last month that Karen Sillk had allegedly presented two budgets to the owners (one if we survived and one for relegation) so maybe the numbers work for the owners.

The big problem is that thus far Venky's decision making has been nothing short of disasterous, so with that in mind, it's hard to see any benefit from them remaining as owners.

[OJRovers]

Unfortunately my understanding of finance is not good enough to say if this could be beneficial, I was however told last month that Karen Sillk had allegedly presented two budgets to the owners (one if we survived and one for relegation) so maybe the numbers work for the owners.

Budget 1 - if relegated: Sell as many players as possible, reduce all costs, take parachute payments.

Budget 2 - stay up: Sell as many players as possible, reduce all costs, take one last season's worth of Premier leagure tv payments.

2013/14: Repeat