[Archived] Venkys wealth

[Exiled in Toronto]

As I suspected, they are so wealthy that the losses are just a decimal point to them, so it's all about pride.

As to the question about why do they have debt, it's what rich people do, use other people's money. Onassis never spent a drachma of his own buying ships.

Kinda puts paid to the promotion or bust, need to sell Rhodes at a car boot sale nonsense peddled on here.

[ABBEY]

Let's sweep the 120million losses and embargo under the carpet then ..loadsa money 😡

[Amo]

As I suspected, they are so wealthy that the losses are just a decimal point to them, so it's all about pride.

As to the question about why do they have debt, it's what rich people do, use other people's money. Onassis never spent a drachma of his own buying ships.

Kinda puts paid to the promotion or bust, need to sell Rhodes at a car boot sale nonsense peddled on here.

It doesn't matter how much they're worth when none of that money has been invested to the betterment of the club. And now with FFP they can't just pump money into the club even if they wanted to, and they sure as hell don't seem to have the nous to abuse the system.

We're still £100m in debt and under a transfer embargo. To prove we're compliant with FFP we'll have to reduce costs, which will probably mean selling our most expensive assets. The debts are unserviceable and if Venky's decide to pull the plug we would end up in the same position as Portsmouth or worse.

[longsiders1882]

For good or ill I'm glad we are owned by 'local lads' who were, to a man, fans first:

In the Premier League and Championship combined, there are 27 clubs of 44 (that’s 61 per cent) with a foreign owner or co-owner, with 33 different parties with a collective fortune of £69.85billion involved.

Of those clubs, 24 are controlled by foreign owners, who collectively paid £2.765bn for those clubs, now worth an estimated £5.788bn, the MoS can reveal

[TBTF]

According to Harris they are both. Funnily enough though they never seem to show up on Indian rich lists.

400 mill cash in the bank he replied to someone on twitter.

they have spent a quarter of that on their baby, then

I am also trying to understand the £23 million pound figure, maybe it includes assets such as Ewood Park, Brockhall, value of players etc to get to this £23 million valuation?

What I will say is that no way would Nick Harris get involved in any Venky's propaganda. He looks at these kind of issues in a very serious manner and has exposed allsorts of wrong doings in the past related to Football finance.

They bought it for £23m plus the Barclays borrowing of £18m from the walker Trust didn't they? So basically he is saying its not moved one way or the other taking the bank out of the equation.

Personally I think its moved down by £23million and is worth zero!!!

[davulsukur]

they have spent a quarter of that on their baby, then

They bought it for £23m plus the Barclays borrowing of £18m from the walker Trust didn't they? So basically he is saying its not moved one way or the other taking the bank out of the equation.

Personally I think its moved down by £23million and is worth zero!!!

In its current state, its completely unsellable. So yer, worth zero.

[EgyptianPete]

Tom I can categorically swear there was a lot of love on the bbe for them v Liverpool .

How can it be fact we are still worth 23 million ?

Well Abbs, I am on the BBE and have been for many years and in a section that shall we say is not PC, i never heard anything related to Venky love at the liverpool match.

[riverside returns]

Who is the debt owed to? If it is owed to Venky's then it is not a real debt. Our problem seems to be higher costs than takings

[scotchrover]

Who is the debt owed to? If it is owed to Venky's then it is not a real debt. Our problem seems to be higher costs than takings

If they have the wealth stated in this article, and from what I've heard before, the debt belongs to them. I can't see them wanting to pay the bank to service the debt, especially if they have this £2billion available.

[ABBEY]

All suss to me

[Athlete]

All suss to me

always from day one...

[tomphil]

If they have the wealth stated in this article, and from what I've heard before, the debt belongs to them. I can't see them wanting to pay the bank to service the debt, especially if they have this £2billion available.

According to the last accounts just over half the 80 mill is owed to them but the rest is/was external. It's enough and it's that bit that will continue to rise until they pay it down.

[Exiled in Toronto]

It doesn't matter how much they're worth when none of that money has been invested to the betterment of the club. And now with FFP they can't just pump money into the club even if they wanted to, and they sure as hell don't seem to have the nous to abuse the system.

We're still £100m in debt and under a transfer embargo. To prove we're compliant with FFP we'll have to reduce costs, which will probably mean selling our most expensive assets. The debts are unserviceable and if Venky's decide to pull the plug we would end up in the same position as Portsmouth or worse.

Nothing new then.

The point is that if they pull the plug it'll be because they want to, not because they are forced to, which has been the narrative on here for quite a while, unsustainable losses etc. If they are worth two billion then it's probably going up 200 million a year!

Personally I think they will hang around till costs are somewhat in line with income, write off the debt and sell the club for a song

[RevidgeBlue]

If Harris is correct about Venky's approximate net worth then that would tend to corroborate what I've been saying recently about the local businessperson who was of the view that Venky's are immensely wealthy.

Now what we could do with (apart from an effective manager) is for the FFP rules to be successfully challenged to give us a bit more leeway.

Does anyone know if "income" for FFP purposed has to be derived directly from football related activities? Could Venky's theoretically market a new wonder drug in the name of the holding company that own Rovers and treat the revenue as that of the Club?

Or could QPR similarly build and sell billions of quids worth of housing in London and treat that as income for FFP purposes?

[Iceman]

Nice. we are rich... we love you Venkys right Abbey?

on a serious note, if they have that amount of money, or valued at that much, its probably one of the reasons why they are staying longer than expected. Im guessing they are looking at it, and saying well we have x amount of money, and we are losing so much at Rovers. However it does not really dent them that much, so they can hold on and see if we can somehow get back into the PL.

[Kamy100]

If Harris is correct about Venky's approximate net worth then that would tend to corroborate what I've been saying recently about the local businessperson who was of the view that Venky's are immensely wealthy.

Now what we could do with (apart from an effective manager) is for the FFP rules to be successfully challenged to give us a bit more leeway.

Does anyone know if "income" for FFP purposed has to be derived directly from football related activities? Could Venky's theoretically market a new wonder drug in the name of the holding company that own Rovers and treat the revenue as that of the Club?

Or could QPR similarly build and sell billions of quids worth of housing in London and treat that as income for FFP purposes?

QPR's legal challenge to their FFP fine is the one to watch over the next few weeks, Tony Fernandes et al put in a £60 million cash injection which effectively writing off loans, which the Football League auditors deemed not to be within the FFP regulations. If their judicial review is successful it will effectively open the door to other owners doing the same thing.

[Iceman]

QPR's legal challenge to their FFP fine is the one to watch over the next few weeks, Tony Fernandes et al put in a £60 million cash injection which effectively writing off loans, which the Football League auditors deemed not to be within the FFP regulations. If their judicial review is successful it will effectively open the door to other owners doing the same thing.

i dont get this Kamy, if you put in your own cash to clear your debt, how is that deemed an issue? surely you are not taking out loans to clear up existing loans and creating more debt to service the short term. It doesnt make sense at all.

[davulsukur]

i dont get this Kamy, if you put in your own cash to clear your debt, how is that deemed an issue? surely you are not taking out loans to clear up existing loans and creating more debt to service the short term. It doesnt make sense at all.

FFP is based on losses, not overall debt. In the BBC article it says that they posted a loss of circa £10million but Fernandes cleared a further £60million, which were loans, with his (and shareholders) cash.

I'm guessing that these accounts are for their promotion year, which means they made a loss of £70million in that season. Obviously that falls way outside of the permitted amount allowed.

[Iceman]

FFP is based on losses, not overall debt. In the BBC article it says that they posted a loss of circa £10million but Fernandes cleared a further £60million, which were loans, with his (and shareholders) cash.

I'm guessing that these accounts are for their promotion year, which means they made a loss of £70million in that season. Obviously that falls way outside of the permitted amount allowed.

aah okay that makes a bit more sense davulsukur... i was under the impression, that it revolved around overall debt which included losses. But im hoping that Tony Fernandes takes them on, and clubs follow him. We know Shaw wont do anything, but i hope the other clubs can challenge this

[ABBEY]

... we love you Venkys right Abbey?

from the heart of my bottom

[rickard]

With so much money you have to wonder why they persist running the football club into the ground with bad decision after bad decision.

Get a manager that can get us out of this league, give him a 5m bonus if he gets us up, job done.

But no, they hire a rookie and give him nothing to spend....

The Venky's "logic" that you have to have a young manager to get the best out of young players... As proven by GB's fantastic record of using the players from the youth squad.

[47er]

QPR's legal challenge to their FFP fine is the one to watch over the next few weeks, Tony Fernandes et al put in a £60 million cash injection which effectively writing off loans, which the Football League auditors deemed not to be within the FFP regulations. If their judicial review is successful it will effectively open the door to other owners doing the same thing.

Sadly I don't believe our owners will be among them.

[Roverall]

If Venky's really are worth that much, what are the chances that they will hold onto the club ad infinitum?

Slash the wage bill reducing them to a truckle (in relative terms) and 'save face' forever...

Sorry, I meant 'reduce the losses to a trickle...'

[chris_h]

If Venky's really are worth that much, what are the chances that they will hold onto the club ad infinitum?

Slash the wage bill reducing them to a truckle (in relative terms) and 'save face' forever...

Sorry, I meant 'reduce the losses to a trickle...'

I like to hope that an exit strategy allowing Venkys some dignity is more likely. What's the point of hanging on when they see no benefit for the money the club costs them?

[Roverall]

Your guess is as good as mine but barring a return to the PL it's difficult to see any way they could exit without the world being reminded of the sheer incompetence and farce of their ownership.

One would think that they would go for a top calibre manager to try and get us up if they were set on that particular 'dignified' exit strategy...