[Archived] Are Venkys gambling our Clubs future?

[TBTF]

The current flow of players into Brockhall, though not all are yet signed up, is starting the alarm bells.At a time when we needed a modest amount of funds to allow reinforcements to keep us in the PL , we ended up spending buttons.Safe to say then that our intrepid owners did not see the need for player investment or may not have possessed the cash.Upshot, relegated.

Now with only Yak and Hoillet officially out the door its like a plane load arrives every week from Portugal and we must have a playing staff capable of putting several teams out (standard dubious admittedly).the last one we got from there barely played 10 minutes last season (Simon )

We have £16m of parachute money coming but very little from ST sales/sponsors/merchandise and a fan base that looks set to evaporate .Yet suddenly its a brave new world, clean slates everywhere and almost an assumption that by throwing cash at it we will go up at the 1st attempt.Relegation clauses or not, some of these purchases , many without sell on values, have not come cheap and our playing staff payroll must by now be enormous.Maybe the mass exodus is coming which we have been told won't happen , the PR spin on which will be mind blowing if it does but JUST HOW IS ALL THIS BEING FINANCED??

You wouldn't think Venkys have suddenly discovered a cash well so it looks like we are gambling by plunging the Club into debt in the hope of promotion straight away.Its cutting little ice with fans whatever it is but if they are mortgaging the Club and the gamble fails where the hell will we be next May?? these are very massively worrying times and not going up with a huge pile of debt will pretty much spell the end of the Club

The morons at the Club are being suckered in to some massive PR spin about exciting times and clean slates blah , blah , blah!! But if this goes wrong with the club in serious debt it wont ever be capable of being sold-it will be straight to where Portsmouth are.

Am i missing something here but this just is not adding up, not that anything ever did but this one could be a fatal error.

[tomphil]

Handing big money to players for big wages on 2 year contracts could been seen as a handy way to bleed money out of a club drip by drip. If you consider how much of those wages are agent percent's and where some of those percent's actually end up ! Just a thought of course lol

[hesfromburn]

I would like to add they are NOT throwing money at it, think of the money they got from phil jones, samba, and take the wages saved in players left, and the money will probably recieve from 2 or 3 players if they leave. I very much doubt they will spend more than what they have sold players for. This is the clubs money they are spending Venkys have yet to reach into their own pocket.

[Jock]

Large turnover of staff means more agent fees.

[Miker]

Before posting you need to go look at the figures the club is dealing with in terms of wages and debts, and compare it to the ins and outs of the playing squad.

I havent looked at the numbers for a while, but from memory the Samba money should have been just about enough to clear the remaining debt.

We have since received 1m from the Yak and maybe up to 5m from Hoilett compensation. That money was meant to be spent on Best and Silva. Best has been bought, looks like Silva isn't happening though.

Our wage bill last season before some of the exits was at more than double what our income will be in the Championship. That means its inevitable that we will make a loss and it's inevitable that the wage bill would have to be cut (which is what we started to do from Jan onwards when the club was clearly preparing for relegation).

It also means that it is absolutely vital that we get back to the Premier League in at least the next 2 years while we can afford a better wage bill than other clubs.

Failing this or even worse getting relegated to League One, is a scary prospect.

Agents are agents. They'll take money anywhere they can: buying clubs, selling clubs, players. The amount we pay them is but a small percentage of agents' total earnings.

[yoda]

When I saw the topic name I thought at last someone has spilled the beans !!!!!!!!

[Earlydoors]

What future?

[thenodrog]

The current flow of players into Brockhall, though not all are yet signed up, is starting the alarm bells.At a time when we needed a modest amount of funds to allow reinforcements to keep us in the PL , we ended up spending buttons.Safe to say then that our intrepid owners did not see the need for player investment or may not have possessed the cash.Upshot, relegated.

Now with only Yak and Hoillet officially out the door its like a plane load arrives every week from Portugal and we must have a playing staff capable of putting several teams out (standard dubious admittedly).the last one we got from there barely played 10 minutes last season (Simon )

We have £16m of parachute money coming but very little from ST sales/sponsors/merchandise and a fan base that looks set to evaporate .Yet suddenly its a brave new world, clean slates everywhere and almost an assumption that by throwing cash at it we will go up at the 1st attempt.Relegation clauses or not, some of these purchases , many without sell on values, have not come cheap and our playing staff payroll must by now be enormous.Maybe the mass exodus is coming which we have been told won't happen , the PR spin on which will be mind blowing if it does but JUST HOW IS ALL THIS BEING FINANCED??

You wouldn't think Venkys have suddenly discovered a cash well so it looks like we are gambling by plunging the Club into debt in the hope of promotion straight away.Its cutting little ice with fans whatever it is but if they are mortgaging the Club and the gamble fails where the hell will we be next May?? these are very massively worrying times and not going up with a huge pile of debt will pretty much spell the end of the Club

The morons at the Club are being suckered in to some massive PR spin about exciting times and clean slates blah , blah , blah!! But if this goes wrong with the club in serious debt it wont ever be capable of being sold-it will be straight to where Portsmouth are.

Am i missing something here but this just is not adding up, not that anything ever did but this one could be a fatal error.

Football agents make most money through moving players in and out of clubs. Nuff said. Dastardly and Muttley will be engaged on a short term business policy frequently referred to as 'milking the cow' whilst they can.

Meanwhile the cow appears oblivious to it all.

Unfortunately BRFC will be the long term loser. My only consolation after baling out of the madhouse over twelve months ago is that none of it is my money.

[Mr Maureen]

Are Venkys gambling our Clubs future?

Have you been in hibernation for the last 18 months TBTF ?......If not then why such a naive question.

The club was openly hijacked 18 months ago,its gone along with me and thousands of others.

[DavidMailsTightPerm]

Our wage bill last season before some of the exits was at more than double what our income will be in the Championship. That means its inevitable that we will make a loss and it's inevitable that the wage bill would have to be cut (which is what we started to do from Jan onwards when the club was clearly preparing for relegation).

But it would appear that a number of the high earners had relegation clauses - so things may not be as bad as we fear.

[TBTF]

Are Venkys gambling our Clubs future?

Have you been in hibernation for the last 18 months TBTF ?......If not then why such a naive question.

The club was openly hijacked 18 months ago,its gone along with me and thousands of others.

Not at all but the point i am making is that having got to a debt free position through sales and wage reductions which cost us our place in the PL where and why has all this money appeared from allowing us to potentially sign all manner of players on daft wages without sell on value.There has been a massive shift in thinking so with a massive wage bill and still more coming where is it all being financed from??

We were told that we were debt free at end of season and that was supposed to be something for us to applaud even though it cost us relegation.So why are the brakes back off again and where is it all coming from-are we going headlong back into debt again but this time with fewer saleable assets????

I know its been gang rape for 18 months but this might be a debt gamble that if we lose will kill us.

[Brfcrule1]

One thing that I will remind everyone Venkys have moved all the banking to bank of India paid off the barclays overdraft.

Remember the important part of this bank of India issued an overdraft secured against Venkys assets.

As they can't use assets from another country to secure an overdraft.

But we will only know what is really going on once the accounts are released.

[Stuart]

As they can't use assets from another country to secure an overdraft.

Do we know this for a fact though, Savio?

Also as BRFC is now part of Venkys Group of Companies, couldn't they just use some creative accounting so that Rovers and up covering any losses anyway?

It's too hard to believe that now, only after relegation, they have changed their approach. It makes zero sense and nothing they have done so far makes me trust that as a possibility.

[dingles staying down 4ever]

Here the warning sign for Championship clubs paying high salaries. Venky's must surely be aware or am I being naive?

http://www1.skysports.com/football/news/11095/7926264/Ben-Haim-puts-Pompey-on-brink

[roverandout]

who says all debts are paid? isnt that an urban myth?

[TBTF]

One thing that I will remind everyone Venkys have moved all the banking to bank of India paid off the barclays overdraft.

Remember the important part of this bank of India issued an overdraft secured against Venkys assets.

As they can't use assets from another country to secure an overdraft.

But we will only know what is really going on once the accounts are released.

so moving on 12 months from now and we haven't been promoted-little income other than parachute money and lets say we run up a £25m-30m overdraft at Bank of India.And that might even be the case even if by then we have sold Yak, Hoillett, Olsson, Robinson, Nzonzi etc and given away all the crap.

What happens then ? we will have no real player assets to sell, nobody will buy a Championship Club for that sort of money so what will they have to sell then -Brockhall?? Or simply are we on the road to Admin a la Portsmouth??

It just frightens me that we are heading in to debt to gamble on promotion with a bunch of clowns in charge and it is going to get seriously ugly when we survey the wreckage next may if we haven't managed it by some fluke.

Its a gamble that could kill us.

who says all debts are paid? isnt that an urban myth?

Sure thats what Shebby has been ranting on about-if we are in debt and still spending like lottery winners then that makes it even worse!!

[4000Holes]

who says all debts are paid? isnt that an urban myth?

Aye, thats the problem. Barclay's out of it but now some Indian bank involved and we can't or not now able to get to the figures? What a mess!

These villaians ought to be banned from running any respectable business as they are so slippery, eel's should be worried.

They still back super tacticion Steve, so god help us! Bet our friends to the east Ac St are still laughing. How can our man Steve con the owners to the extent he has? He cannot set a team up to save his life and there is only one end.

Pathetic owners, poor manager, only one end.

Sorry!

[Sparky Marky]

But it would appear that a number of the high earners had relegation clauses - so things may not be as bad as we fear.

Why are you always apologising for the owners? Every one of you posts is slanted that way. I think your playing devils advocate most of the time..

or are you simply a fool?

[47er]

Same thoughts occurred to me!

[thenodrog]

Why are you always apologising for the owners? Every one of you posts is slanted that way. I think your playing devils advocate most of the time..

or are you simply a fool?

Any man is liable to err, only a fool persists in error.

Marcus Tillius Cicero

[Salgado Is A Hero]

But it would appear that a number of the high earners had relegation clauses - so things may not be as bad as we fear.

Why are you always apologising for the owners? Every one of you posts is slanted that way. I think your playing devils advocate most of the time..

or are you simply a fool?

I do think he is playing devil's advocate some of the time....but a lot of it needs to be said.....people slag Venky's and Kean off and rightly so, 1 million per cent......but it is worth pointing out some of the things DMTP comes out with.

[footypix]

I'd be extremely concerned if we hadn't signed any players by this point in pre-season. It appears that these players are Steve Kean signings. He has no excuse that he hasn't been backed.

If he fails to deliver, he has no defence to trott out at a press conference. The team will be made up of his players, his signings, fail and he'll be out.

[bannedwidth]

The fans are the blood of a football club. They know full well all they have to do is sack the lunatic to get us back on side but they wont do it so what are their real intentions? Suck the blood dry, cut up the carcass and leave it dead.......

[TBTF]

The fans are the blood of a football club. They know full well all they have to do is sack the lunatic to get us back on side but they wont do it so what are their real intentions? Suck the blood dry, cut up the carcass and leave it dead.......

So 2 more Portugese players signing after 10 minute trials against Fleetwood/Accy!! Has some body bought a Portugese Sticker album to training?? Thats 4 of them and one (Silva) still being chased.Have nothing against Portugese players at all but weren't we supposed to be buying experience and people who knew what English Football was all about?? How many players will we have registered at this point in time?

I repeat either there will be a boatload leaving shortly or this is one cash gamble too many. Chime up Blackburn.......

[Hughesy]

What risk has been taken so far??

We have signed Best & Murphy on proper deals, where they will both be earning £30k+ a week according to reports + 4 unknown Portuguese for next to no initial cost, and more than likely very small wages.

But you have to remember a number of things:

The following have all left the wage bill: Hoilett, Yakubu, Sagado, Grella, Goulon, Zac Aley, James Knowles – so if anything we are probably saving on wages in terms of incomings vs outgoings

There is then the case of massive pay cuts for the whole/ majority squad of around 50% due to relegation clauses.

Add to that the fact that it’s pretty much inevitable that we will see at least 2 departures between now and August 31^st, with the likes of Martin Olsson & NZonzi looking for escape routes.

We also should receive around £4m for Junior once its settled, and if any of our other 1^st team squad leave, they will all attract decent fees.