[Archived] Rovers £54.5m in debt.

[broadsword]

So does admin mean the definitive end of venky's? There's no possible way they could hang onto us?

[yoda]

No idea what you mean

he who must not be named

[thenodrog]

Surprised how few responses to your post there are Theno.

It's all been written before Den so scaremongering stories are nothing new on here. I don't really want to do a PhillipL but because of the source this is very different.

[broadsword]

From the chicken's mouth?

[den]

I guess a quickly orchestrated Administration this season might be attractive because it would nullify the fine for the FFP.

[thenodrog]

I presume so. Big money that isn't it? What would you do if you'd bought some nondescript small town Indian cricket team and it had gone sour with the only prospect being of it getting much much sourer?

[den]

I presume so. Big money that isn't it? What would you do if you'd bought some nondescript small town Indian cricket team and it had gone sour with the only prospect being of it getting much much sourer?

Put it in the hands of the administrator, then walk away.

[thenodrog]

The only downside to that might be the situation with player registration and contracts.

[den]

I meant after giving it away to the first interested party.

Maybe JA. would step forward? He's always wanted involvement in a football club. How about a Kean/Anderson consortium? Would that get support from the fans? - probably, yes.

[Paul]

The only downside to that might be the situation with player registration and contracts.

That's the problem with the self-interested football administrators in this country - football debts must be paid in full if the club wants to continue. Bloody iniquitous. The little print company knocking out the programmes, the milkman and countless other small businesses get bugger all and the highest paid get 100%.

[thenodrog]

That's the problem with the self-interested football administrators in this country - football debts must be paid in full if the club wants to continue. Bloody iniquitous. The little print company knocking out the programmes, the milkman and countless other small businesses get bugger all and the highest paid get 100%.

I can't work out how that is legal. btw does that mean 'football debt' comes above the HMRC for example?

[Bucksrover]

As there seems to be a very real danger this may be the club's last season i hope fans get to matches in big numbers.

Those staying away to make there point might miss there last chance to cheer rovers on at ewood.

[FGS5635]

In theory this is why the the Indian bank may have to keep supporting us. If we do go into admin then they are way down the list in creditors who will get their cash 1st. They would likely get nothing by the time football debts and the HMRC have been paid

[thenodrog]

But would they throw more at it? The situation means they might have to. Anyway is the Bank of India debt actually with BRFC or the Venkymob?

[darrenrover]

I'm pretty certain normal rules apply in terms of the pecking order of payment of creditors whether in full or in part. that being the case, football related creditors fall in line with the others that are unsecured as with any other failed business that has limited liability.That is the legality.

The football anomaly surrounds the right to continued League membership of the individual entity post the fateful day. So if some status was to be preserved then the trade off is the settlement of the football related debts and contractual obligations.

Without that being secured the likely dividend in the pound to unsecured creditors would probably be zilch anyway.

[EgyptianPete]

As there seems to be a very real danger this may be the club's last season i hope fans get to matches in big numbers.

Those staying away to make there point might miss there last chance to cheer rovers on at ewood.[/qute]

What a load of tosh read the mail on Sunday re QPR much worse than Rovers by a long way

[chaddyrovers]

I guess a quickly orchestrated Administration this season might be attractive because it would nullify the fine for the FFP.

who says the club is going into Administration at the end of the season???

of the 54.5 million pounds Rovers debt, 36.1 million pounds is owned to Venkys London Limited, so the owners could write that Loan off so reduced the Rovers debt. this is option for the owners. not saying this will happen tho. just something that could happen.

Will the FFP rule come in? will they been legally challenge in the UK courts?

how many clubs will not be able to meet the FFP rules? I suspect at least 6 or 7 Championship clubs will not meet them. what will the Football League do then? enforce the rules or given Clubs another year to meet the rules?

In theory this is why the the Indian bank may have to keep supporting us. If we do go into admin then they are way down the list in creditors who will get their cash 1st. They would likely get nothing by the time football debts and the HMRC have been paid

The loan from the Indian Bank is secure against Venkys Assets in India and NOT AGAINST BRFC!!!

[den]

I can't work out how that is legal. btw does that mean 'football debt' comes above the HMRC for example?

Para 2. Football creditors rule. BTW, look at the list of clubs that have entered Administration.

http://en.wikipedia.org/wiki/Administration_(British_football)

[Stuart]

who says the club is going into Administration at the end of the season???

of the 54.5 million pounds Rovers debt, 36.1 million pounds is owned to Venkys London Limited, so the owners could write that Loan off so reduced the Rovers debt. this is option for the owners. not saying this will happen tho. just something that could happen.

It's easy to say could - hypothetical - I could win the lottery. Do you really believe they would though Chaddy? If so, based on what?

I might have looked at the signing of Rhodes as a potential for optimism on that front but, on the face of it, that has just been added to our debt as well.

[broadsword]

The owners could just write that money off, could they? Simple as that? I suspect not, because then their own finances will be shory.

What we have here is a high turnover low margin business taking over a high cost loss making concern that kept its head above water by shrewd management. With the hopeles management we've seen they've screwed it so bad it can't recover. Don't imagine they'd put their core business at stake to try to bring a dead duck back tp life. Even these morons should realise that they need to get out befote they lose their golden goose

[den]

who says the club is going into Administration at the end of the season???

of the 54.5 million pounds Rovers debt, 36.1 million pounds is owned to Venkys London Limited, so the owners could write that Loan off so reduced the Rovers debt. this is option for the owners. not saying this will happen tho. just something that could happen.

Will the FFP rule come in? will they been legally challenge in the UK courts?

how many clubs will not be able to meet the FFP rules? I suspect at least 6 or 7 Championship clubs will not meet them. what will the Football League do then? enforce the rules or given Clubs another year to meet the rules?

We're discussing an earlier post from Theno, Chaddy.

For me, the key phrase is that the financial position is unrecoverable. Now that's not too difficult to accept is it? At the last count the debt was £54.5m. It must be significantly higher than that now and rising by the day. So you say the owners could pay it off, but why would they bung sixty million quid in, while still seeing the debt rise by two million a month? Only idiots would do that. Again, for me, and I've said it before, the finances are out of control. There's nothing they can do to halt the losses, at least in the short term. I don't see how they get out of this situation without putting much, much more than 60 mill in. They really won't do that, will they? You tell me the answer Chaddy.

[broadsword]

Remember, cash is king, lack of cash can kill a business even if it has lots of illiquid assets. Rovers are now a basket case. The situation is hopeless, it could be a choice between binning rovers and pumping good money after bsd and having Rovers and their core business fail. Jesus, alarm bells must be ringing big time

[Stuart]

I think Chaddy is referring to Venkys [supposed] personal wealth.

[broadsword]

Yes but wealth isn't just cash

Yes but wealth isn't just cash

[Stuart]

Hence 'supposed'. The hope is that it is cash.

Even then I don't believe they would pump it in.

It seems to be the conventional wisdom that Balaji bought Rhodes with some spare change that he had. I suspect that too is actually debt.