[Archived] Are the Rao's really this stupid?

[rovers11]

Reserve bank of india wants all banks to clear up their bad loans by march 2017. Probably why venkys are not getting any more funds from SBOI.

What is meant by bad loans? Surely it's in the banks interest to continue to make money out of Venky's by lending them money. They're a big deal in India, so I don't see the banks necessarily seeing any lending to them as risky.

[Iceman]

But if they didn't want to weaken the team they'd use their own multi millions surely.

Venkys sent me an email, to ask if i could lend them a few quid. Told them to @#/? off

[tomphil]

What is meant by bad loans? Surely it's in the banks interest to continue to make money out of Venky's by lending them money. They're a big deal in India, so I don't see the banks necessarily seeing any lending to them as risky.

Bad loans as in there is no guaranteed parachute income to service borrowing now I would think. Only way would be cash from elsewhere be it owners, investors or asset cashing.

[rovers11]

Bad loans as in there is no guaranteed parachute income to service borrowing now I would think. Only way would be cash from elsewhere be it owners, investors or asset cashing.

Haven't the accounts shown that the loans are secured against Venky's and not Rovers. I'm not sure the banks would have taken the parachute payments into account, Venky's are still not short of a few bob. More likely that Venky's don't want to have to use their own money to service the debts, rather than the banks getting twitchy about no parachute payments.

I personally feel that things are coming to a head. No parachute payments and only two more assets to cash in = Venky's have to put more of their own cash in to keep the club going and to service the loans they have taken out. They don't want to do that, they want the club to pay for itself which won't happen.

[tomphil]

Haven't the accounts shown that the loans are secured against Venky's and not Rovers. I'm not sure the banks would have taken the parachute payments into account, Venky's are still not short of a few bob. More likely that Venky's don't want to have to use their own money to service the debts, rather than the banks getting twitchy about no parachute payments.

I personally feel that things are coming to a head. No parachute payments and only two more assets to cash in = Venky's have to put more of their own cash in to keep the club going and to service the loans they have taken out. They don't want to do that, they want the club to pay for itself which won't happen.

The external debt runs at roughly what the club and it's assets are worth I think, similar to the trust. However some of the account savvy on here have said it's done in a way that if it needed calling in the bank could look at the club first.

I almost feel that this is what's been happening and it may have even been taken out of the V's hands for the time being whilst the bank squares it off. I'm also sure that the lack of guaranteed X millions per season via parachutes has contributed to this.

As for the other 80 mill supposedly put in god knows where that's come from or what it's secured against. Land in India is thought to be it but there was mutterings of problems with that as well.

Something slid towards the fan last summer for sure.

[darrenrover]

Are The Raos letting the clock tick down?

After all any due diligence carried out by prospective owners would only go back so far?

As they appear to have no interest in our plight and have shunned several credible 'get out of jail' cards, what other motives could they have?

[Roverall]

There are probably so many skeletons knocking around the closet that they will never sell OR wind up the club and risk exposure.

Therefore, they write the club off as an expensive mistake and allow it to sink further and further, reducing costs to a bare minimum that is easily offset a hundred times over by their core business.

[yoda]

Are The Raos letting the clock tick down?

After all any due diligence carried out by prospective owners would only go back so far?

As they appear to have no interest in our plight and have shunned several credible 'get out of jail' cards, what other motives could they have?

2 imminent sales and a boost to the personal coffers. Why leave ?

[SIMON GARNERS 194]

No light at the end of the tunnel folks,on and on we go to hell on a hand cart.

[darrenrover]

2 imminent sales and a boost to the personal coffers. Why leave ?

Come on yoda, you don't believe that's a consideration surely?

Where's the CASH coming from to support the current operational costs? Season ticket sales and walk ons on match day certainly won't cover them.

[yoda]

Come on yoda, you don't believe that's a consideration surely?

Where's the CASH coming from to support the current operational costs? Season ticket sales and walk ons on match day certainly won't cover them.

I don't know, I also don't know why they are still here. By all reasonable thought there is no sense in appearing to be throwing money down the drain.

On the face of it that is what it looks like substantial business people are doing.

So if you can't find a logical reason i would suggest there is an illogical reason, in that case all bets are of and anything could be happening.

The end result is the Rovers are doomed

[rhodie]

I don't know, I also don't know why they are still here. By all reasonable thought there is no sense in appearing to be throwing money down the drain.

On the face of it that is what it looks like substantial business people are doing.

So if you can't find a logical reason i would suggest there is an illogical reason, in that case all bets are of and anything could be happening.

The end result is the Rovers are doomed

They simply won`t admit they cocked up and if they walk away they would be admitting they are idiots, it`s a cultural thing. You are right there though Yoda, we are doomed

[darrenrover]

I don't know, I also don't know why they are still here. By all reasonable thought there is no sense in appearing to be throwing money down the drain.

On the face of it that is what it looks like substantial business people are doing.

So if you can't find a logical reason i would suggest there is an illogical reason, in that case all bets are of and anything could be happening.

The end result is the Rovers are doomed

I wouldn't disagree with your end result.

I too was searching for a 'reason' and fear of due diligence was all I could come up with.

Perhaps they had a massive punt at Leicester like odds in 2010 to gain promotion from Div 1 in season 2017/18, who knows? One things for certain, when your 10th in the Prem at the time, any unscrupulous bookie would rub their hands and pocket a £100k bet.

Ridiculous, I know but.................?

[bazza]

I repeat. It's like someone being held in Guantanamo Bay.

Our owners are torturing the supporters and it seems to be that they are enjoying it.

Raos are sadists.

[allanncd]

Come on yoda, you don't believe that's a consideration surely?

Where's the CASH coming from to support the current operational costs? Season ticket sales and walk ons on match day certainly won't cover them.

This season will be funded partly from the sales of Hanley and probably Duffy/ Marshall. And next season (in League1) there will be completely new set of players on far lower wages so the losses will have been downsized.

[darrenrover]

So, why the unprofessional and disrespectful brush off to Seneca?

£60 million and no future support for any trading losses in return for 51%. Tie the financials into the implementation of a management structure fit for purpose and you have to question why Venkys couldn't even condescend to talk to the Ian's. Forget the loan, surely that's been self inflicted? They must be crackers unless...........?

After all 49% of something plus an opportunity to save face is better than 100% of bugger all?

[allanncd]

So, why the unprofessional and disrespectful brush off to Seneca?

£60 million and no future support for any trading losses in return for 51%. Tie the financials into the implementation of a management structure fit for purpose and you have to question why Venkys couldn't even condescend to talk to the Ian's. Forget the loan, surely that's been self inflicted? They must be crackers unless...........?

After all 49% of something plus an opportunity to save face is better than 100% of bugger all?

Any deal that waives the debt would mean the lenders to Venkys take the assets in India they have pledged as security for the loans taken out to fund BRFC. By maintaining the club as a zombie that day is postponed.....

[darrenrover]

Any deal that waives the debt would mean the lenders to Venkys take the assets in India they have pledged as security for the loans taken out to fund BRFC. By maintaining the club as a zombie that day is postponed.....

I'm sorry but I don't get your logic.

Just to clarify, allegedly we're talking £120 million debt. We're talking Duffy and Marshall and not Pogba and Messi.

To move forward Venkys have to talk and be prepared to write off the debt.

[tomphil]

If they've borrowed to the tune of 100 mill or near that then they can't walk that's the problem.