[Archived] The Rao's : We need a statement of intent for next Season.

[DE.]

What is your take on the debt? Genuine question, I really don't know. I've read that Venkys own the debt and it is ring fenced from the club. Others have tried to debunk that theory, I'm still none the wiser.

No lesser source than Nick Harris has said that Venkys are worth billions. How do you reckon that impacts on our debt situation?

It's difficult to speculate on the nature of our debt, as we don't really know exactly how it's going to be financed or reduced going forward - to be honest I see no way to reduce it significantly. Player sales will barely make a dent at this point.

All we can say is that if Venky's decide they no longer want the club we could be in huge trouble. Being in debt to this degree is a disaster and I can't see it ending well.

Is it having an impact right now? Probably not. Our operating losses of circa £2m p/m are the cause of our current embargo, though Venky's weren't exactly splashing the cash beforehand either. Didn't we make a net profit from transfers when we were in the Prem?

Have Venky's actually spent any of their own cash on us, or has it all come from the Bank of India? Either way, unless we get promoted or a wealthy tycoon comes in to bail us out, it seems impossible now to remove the debt. It's a big concern which will become critical whenever Venky's decide they've had enough.

[Exiled in Toronto]

It's difficult to speculate on the nature of our debt, as we don't really know exactly how it's going to be financed or reduced going forward - to be honest I see no way to reduce it significantly. Player sales will barely make a dent at this point.

All we can say is that if Venky's decide they no longer want the club we could be in huge trouble. Being in debt to this degree is a disaster and I can't see it ending well.

Is it having an impact right now? Probably not. Our operating losses of circa £2m p/m are the cause of our current embargo, though Venky's weren't exactly splashing the cash beforehand either. Didn't we make a net profit from transfers when we were in the Prem?

Have Venky's actually spent any of their own cash on us, or has it all come from the Bank of India? Either way, unless we get promoted or a wealthy tycoon comes in to bail us out, it seems impossible now to remove the debt. It's a big concern which will become critical whenever Venky's decide they've had enough.

Nobody on here has a clue, and I don't think it really matters. The Bank of India aren't just their bank for Rovers; they have a gigantic, sprawling business and will have countless interactions with the Bank of India. No doubt the Rovers losses are rolled up with other elements of their business to offset taxes on profits made elsewhere.

My bet is that, at some stage, they will write the debt off. It'll never get paid back as firstly they don't need the money and secondly it's very hard to see how more than a fraction of it could ever be paid back anyway. Will Eddie's Bolton debt ever be paid back? Or Chelsea's?

To put Athlete's mind at rest, cash-rich people and companies borrow money when they think they can get a greater return on it than they pay in interest, thus making them even more money. The global company I worked at made a profit in every one of its 160-year existence and was awash with cash but it always had an overdraft. Goldman Sachs have borrowings in the gazillions because they invest $30 of borrowed money for every $1 of their own, thus multiplying many times over their profit on their $1. Obviously on the Rovers money borrowed (and we don't know how much that is) there is no return, but that will be lost in the myriad of other borrowings hard at work making money in vaccines, chickens etc.

[DE.]

My bet is that, at some stage, they will write the debt off. It'll never get paid back as firstly they don't need the money and secondly it's very hard to see how more than a fraction of it could ever be paid back anyway. Will Eddie's Bolton debt ever be paid back? Or Chelsea's?

You don't become rich by just writing debts off, though. Generally speaking most businesses will try and recoup as much money as possible before writing off a debt, regardless of how much cash they have available. Is there any reason to believe Venky's won't get as much back out of the club as possible before leaving, beyond "they're so wealthy they don't need to bother" ?

[Exiled in Toronto]

You don't become rich by just writing debts off, though. Generally speaking most businesses will try and recoup as much money as possible before writing off a debt, regardless of how much cash they have available. Is there any reason to believe Venky's won't get as much back out of the club as possible before leaving, beyond "they're so wealthy they don't need to bother" ?

They are unpredictable so they could do anything, but everything that has happened to date leads me to believe the debt is not onerous to them and that they value face-saving more than another decimal point on their vast fortune. As long as the pile keeps growing they probably won't want to publicly slink away in disgrace. Plus, every entrepreneur I have ever met ALWAYS externalises the reasons for their failures, so, other than blaming their so-called advisors, I don't expect to ever see an apology.

[DE.]

They are unpredictable so they could do anything, but everything that has happened to date leads me to believe the debt is not onerous to them and that they value face-saving more than another decimal point on their vast fortune. As long as the pile keeps growing they probably won't want to publicly slink away in disgrace. Plus, every entrepreneur I have ever met ALWAYS externalises the reasons for their failures, so, other than blaming their so-called advisors, I don't expect to ever see an apology.

An apology wouldn't be worth a thing at this point anyway. Nobody knows what will happen to our debt when the time comes for it to be dealt with, but I think there's every reason to be concerned about it. Short of promotion to the PL there is no feasible way for the club to get out of it, so we're basically relying on Venky's to write it all off if they ever leave. Not a comforting thought when, as you say, the owners are so unpredictable.

[Proudtobeblue&white]

The real intent will come when the bids for our Crown Jewels arrive? My belief is that the Loons will bankroll next sason and then decide. So a massive season awaits, @#/?s, QPR, and hopefully Geordies await. Can't sell our best players. We shall see?

[Athlete]

Nobody on here has a clue, and I don't think it really matters. The Bank of India aren't just their bank for Rovers; they have a gigantic, sprawling business and will have countless interactions with the Bank of India. No doubt the Rovers losses are rolled up with other elements of their business to offset taxes on profits made elsewhere.

My bet is that, at some stage, they will write the debt off. It'll never get paid back as firstly they don't need the money and secondly it's very hard to see how more than a fraction of it could ever be paid back anyway. Will Eddie's Bolton debt ever be paid back? Or Chelsea's?

To put Athlete's mind at rest, cash-rich people and companies borrow money when they think they can get a greater return on it than they pay in interest, thus making them even more money. The global company I worked at made a profit in every one of its 160-year existence and was awash with cash but it always had an overdraft. Goldman Sachs have borrowings in the gazillions because they invest $30 of borrowed money for every $1 of their own, thus multiplying many times over their profit on their $1. Obviously on the Rovers money borrowed (and we don't know how much that is) there is no return, but that will be lost in the myriad of other borrowings hard at work making money in vaccines, chickens etc.

Write debts off... The way these have gone about their business that I doubt very very much... But what about the external debt?

[ABBEY]

Debts good ha it cleanses the soul don't us lmow

[Exiled in Toronto]

Write debts off... The way these have gone about their business that I doubt very very much... But what about the external debt?

I don't know, you tell me, I have no idea how much they owe. I am pretty certain though that the Bank of India wouldn't jeopardise their entire relationship with the family and company over one debt that is a tiny fraction of their net worth and covered by assets in India anyway. If the debt becomes an issue it won't be because the Bank of India act unilaterally in calling it in.

[Plastic Head]

They are unpredictable so they could do anything, but everything that has happened to date leads me to believe the debt is not onerous to them and that they value face-saving more than another decimal point on their vast fortune. As long as the pile keeps growing they probably won't want to publicly slink away in disgrace. Plus, every entrepreneur I have ever met ALWAYS externalises the reasons for their failures, so, other than blaming their so-called advisors, I don't expect to ever see an apology.

They are very predictable. You can be sure they will not make a good decision when it comes to anything Blackburn Rovers.

Haven't done so far why do you think they would now?

[Exiled in Toronto]

They are very predictable. You can be sure they will not make a good decision when it comes to anything Blackburn Rovers.

Haven't done so far why do you think they would now?

You are saying the outcome of their decisions is predictable; I am saying the decisions themselves are unpredictable, or did you forsee the race for Ronaldo, promoting the third in command to manager, sending over a Malaysian tv pundit to run things, four managers in a year etc etc?

[JHRover]

I seem to recall in a recent set of accounts that external debt accounted for around about £10 million. The rest of the debt, about £60 million, is owed to Venkys with no interest or date for repayment attached.

My interpretation is that the £60 million for now is fairly secure. Venkys can clearly afford to put that money up otherwise the Bank of India wouldn't have lent it to them. The only realistic way for them to get that money back in the near future is to get us back to the Premier League. Player sales or asset stripping might recoup half of that amount but they wouldn't get close to £60 million for Ewood Park, Brockhall and every player on our books, and would be left with a worthless badge and nothing else.

If they are desperate to get that money back then the only solution really is to get back to the Premier League.

Lets remember that we are one good season away from the riches of the Premier League and the mega money that comes with it. Get there and the game changes completely. £120 million per season, potential buyers come sniffing. Three teams every year will get there, and we're in the top half or third of those competing to get there. People might not be confident of getting there soon but it can happen.

The £10 million 'external debt' is the bigger risk, however is less than the £20 million+ debt we had to Barclays when John Williams was chairman. In the grand scheme of a Championship football club a £10 million commercial debt is par for the course. Some clubs have much bigger obligations than that. In the event that debt was to get called in it is highly unlikely that Venkys would allow the club to unravel over a £10 million loan when they have £60 million tied up there themselves.

[ABBEY]

we are also 1 season off the 3rd division and two off the 4th which is more realistic under these moronic quarter wits.

[Iceman]

MAN UP VENKYS, and come forward and talk to the fans... Tell us everything will be alright

[Athlete]

There confused 😕

[ABBEY]

MAN UP VENKYS, and come forward and talk to the fans... Tell us everything will be alright

they are too chicken

[tomphil]

I seem to recall in a recent set of accounts that external debt accounted for around about £10 million. The rest of the debt, about £60 million, is owed to Venkys with no interest or date for repayment attached.

My interpretation is that the £60 million for now is fairly secure. Venkys can clearly afford to put that money up otherwise the Bank of India wouldn't have lent it to them. The only realistic way for them to get that money back in the near future is to get us back to the Premier League. Player sales or asset stripping might recoup half of that amount but they wouldn't get close to £60 million for Ewood Park, Brockhall and every player on our books, and would be left with a worthless badge and nothing else.

If they are desperate to get that money back then the only solution really is to get back to the Premier League.

Lets remember that we are one good season away from the riches of the Premier League and the mega money that comes with it. Get there and the game changes completely. £120 million per season, potential buyers come sniffing. Three teams every year will get there, and we're in the top half or third of those competing to get there. People might not be confident of getting there soon but it can happen.

The £10 million 'external debt' is the bigger risk, however is less than the £20 million+ debt we had to Barclays when John Williams was chairman. In the grand scheme of a Championship football club a £10 million commercial debt is par for the course. Some clubs have much bigger obligations than that. In the event that debt was to get called in it is highly unlikely that Venkys would allow the club to unravel over a £10 million loan when they have £60 million tied up there themselves.

Unless it's changed the external debt in the last accounts was far more than that. The Barclays overdraft at the time of takeover was 16 million.

[Athlete]

Unless it's changed the external debt in the last accounts was far more than that. The Barclays overdraft at the time of takeover was 16 million.

its highly likely to have gone up even further...

was looking at the football grounds group coments on FB regarding Portsmouth and how the fans owned club is paying the remaining debts and if they continue on the sound footing will be poised for a promotion push to League one and then who knows...was very interesting and good to read that they finally got rid of all the Charlatans

[1arC]

It is ridiculous that Portsmouth were taken for a ride by so many people. The so called authorities are supposed to protect their clubs, under what is deemed to be the fit and proper regime. I am sure if another sector, for example Banking was failed so badly by their regulator, they would have been brought to task by now.

We think that we had it bad with the people once involved and still to a degree do, with the owners lack of transparency, but compared to Portsmouth, we got away with it. If FFP can be brought in to stop clubs going out of business, then something more akin to real protection should be brought in to stop these rogues getting involved in our clubs.

[DE.]

I seem to recall in a recent set of accounts that external debt accounted for around about £10 million. The rest of the debt, about £60 million, is owed to Venkys with no interest or date for repayment attached.

My interpretation is that the £60 million for now is fairly secure. Venkys can clearly afford to put that money up otherwise the Bank of India wouldn't have lent it to them. The only realistic way for them to get that money back in the near future is to get us back to the Premier League. Player sales or asset stripping might recoup half of that amount but they wouldn't get close to £60 million for Ewood Park, Brockhall and every player on our books, and would be left with a worthless badge and nothing else.

If they are desperate to get that money back then the only solution really is to get back to the Premier League.

Lets remember that we are one good season away from the riches of the Premier League and the mega money that comes with it. Get there and the game changes completely. £120 million per season, potential buyers come sniffing. Three teams every year will get there, and we're in the top half or third of those competing to get there. People might not be confident of getting there soon but it can happen.

The £10 million 'external debt' is the bigger risk, however is less than the £20 million+ debt we had to Barclays when John Williams was chairman. In the grand scheme of a Championship football club a £10 million commercial debt is par for the course. Some clubs have much bigger obligations than that. In the event that debt was to get called in it is highly unlikely that Venkys would allow the club to unravel over a £10 million loan when they have £60 million tied up there themselves.

IIRC your figures are way off. Double them and you're closer to our actual level of debt.

[tomphil]

its highly likely to have gone up even further...

was looking at the football grounds group coments on FB regarding Portsmouth and how the fans owned club is paying the remaining debts and if they continue on the sound footing will be poised for a promotion push to League one and then who knows...was very interesting and good to read that they finally got rid of all the Charlatans

Yes I can see them rising again on a better footing than they've had for a while. It'll take time of course but they'll be fully 'cleansed'. That will be a great feeling for the loyal fans that have stood by them in numbers.

[MCMC1875]

In the absence of any statement of intent from the Raos, the Venkys, Mr Shaw or Wendy Howard, I had a look into the future last week with mystic Bob Fleming and this is what I saw......

Venkys are still in charge.

Gary Bowyer is no longer - he left looking for stability at some big 2nd Division side in the East Midlands like Derby County or Nottingham Forest.

Rovers are back in the promised land - the top flight of English football.

The manager that won promotion is some fat bloke from Dudley.

ABBEY VILLAGE spends the next 10 years watching his beloved Bulls Head in the Combination (2nd Div) at Pleasy - no one else is there - they're all at Ewood.

The Final Countdown is no longer - Rovers run out to Neil Diamond and Cracklin' Rosie.

[yoda]

Jose preparing the ground for his arrival at Ewood

http://www.bbc.co.uk/sport/0/football/32850793

[MCMC1875]

In the absence of any statement of intent from the Raos, the Venkys, Mr Shaw or Wendy Howard, I had a look into the future last week with mystic Bob Fleming and this is what I saw......

Venkys are still in charge.

Gary Bowyer is no longer - he left looking for stability at some big 2nd Division side in the East Midlands like Derby County or Nottingham Forest.

Rovers are back in the promised land - the top flight of English football.

The manager that won promotion is some fat bloke from Dudley.

ABBEY VILLAGE spends the next 10 years watching his beloved Bulls Head in the Combination (2nd Div) at Pleasy - no one else is there - they're all at Ewood.

The Final Countdown is no longer - Rovers run out to Neil Diamond and Cracklin' Rosie.

.

[Tris]

In the absence of any statement of intent from the Raos, the Venkys, Mr Shaw or Wendy Howard, I had a look into the future last week with mystic Bob Fleming and this is what I saw......

Who on earth is "mystic" Bob Fleming?

Having just spent 6 hours in the pub with non-mystic Bob Fleming, let's be clear he wasn't there with you and didn't see anything.

I've never seen him so grumpy. Don't take his name in vain etc ... ...