[Archived] Letter To Venky's Shareholders

[Brfcrule1]

Great work Kamy sums up perfectly the mood in the fanbase I just hope they act & listen hopefully now it's been proof read & re-sent it has the desired effect!

[Stuart]

Would the shareholders want our £100m debt paying off? Whatever the goodwill?

[arbitro]

Well done Kamy. Can you please keep us updated of any progress?

[Kamy100]

Thanks for the comments.

I am getting the spelling and grammatical errors sorted and then will send it out again this morning/early afternoon.

This is a complete punt really as I don't know if it can or will lead to anything, however there does seem to be some tension between the Rao family and the Venky shareholders so it is worth a try to see if they can apply some internal pressure.

The very good news is having talked to the 2 Ian's over the last few days they remain interested in buying the club or failing that to work with Venky's to sort out the mess, they have a clear strategy on how they would turnaround the club. I also have heard that there are other consortiums interested, so there are options out there if Venky's decide to sell the club.

[DE.]

The very good news is having talked to the 2 Ian's over the last few days they remain interested in buying the club or failing that to work with Venky's to sort out the mess, they have a clear strategy on how they would turnaround the club. I also have heard that there are other consortiums interested, so there are options out there if Venky's decide to sell the club.

Then it's clear we as the supporters must do everything we can to get Venky's to sell, however long it takes. It may be a step into the unknown but it can't be much worse than this slow, lingering death.

Good work on the letter. The focus on Venky's as a company is important, as the shareholders themselves probably won't care a huge amount about the club's history, and so on. To that end I would probably end the letter mentioning Venky's, rather than talking about the club, but either way the letter gets the point across.

[Stuart]

The very good news is having talked to the 2 Ian's over the last few days they remain interested in buying the club or failing that to work with Venky's to sort out the mess, they have a clear strategy on how they would turnaround the club. I also have heard that there are other consortiums interested, so there are options out there if Venky's decide to sell the club.

Good to hear. Just somebody with a clear strategy, with the good of the club seperate from the good of the owners at heart, is a bonus at this stage. How long that strategy continues to be viable - the longer Venkys run the club so badly - is obviously the concern, and the reason we need to force them to sell/leave; regardless of what certain quarters (fifths?) of the fanbase think.

[SIMON GARNERS 194]

Good work Kamy.

Is there any indication the Raos are willing to sell? to my knowledge every approach made to these people has been ignored,appears a consistent theme with their dealings with people on all levels...they simply will NOT listen.

The club is in a straight Jacket.

[bob fleming]

Would the shareholders want our £100m debt paying off? Whatever the goodwill?

I very much doubt it but that would be the best we could hope for. No point having an opening "low" target. Aim high, negotiate and potentially meet somewhere in the middle. Oh we can dream.

[Athlete]

Thanks for the comments.

I am getting the spelling and grammatical errors sorted and then will send it out again this morning/early afternoon.

This is a complete punt really as I don't know if it can or will lead to anything, however there does seem to be some tension between the Rao family and the Venky shareholders so it is worth a try to see if they can apply some internal pressure.

The very good news is having talked to the 2 Ian's over the last few days they remain interested in buying the club or failing that to work with Venky's to sort out the mess, they have a clear strategy on how they would turnaround the club. I also have heard that there are other consortiums interested, so there are options out there if Venky's decide to sell the club.

Cheers for clarifying that Kamy as another poster said there are 3 parties interested in taking the club

[punerover]

Excellent effort Kamy. Gotta give credit where credit is due.

This observations are just my personal opinion and I am NOT trying to belittle your efforts.

Having known first hand how shareholders think, I would be very surprised if you got any reaction at all. Smaller shareholders are mostly insignificant and mostly buy shares based on recommendations, hardly ever read annual reports nor ever attend a AGM. As for the larger ones they are mostly happy to rubber stamp anything the "management" proposes.

Sincerely hoping your letter will bring about some winds of change though. Again, great effort.

[BigUts]

Well done Kamy. A sensational effort to produce a reaction.

Any, good or bad, would be a start somehow!

[chor808]

Good work Kamy, thanks for putting the effort in.

[Ivorsemion]

Great stuff Kamy, well done & thanks

[T J Hooker]

Debt aside, how much do people think the clubs realistically worth? The venkys initially got itdirt cheap i thought and they sold our most valuanle playing assets in the first 12 months, so the club should(youd think) be worth far less now.

[Biddy]

If the club is really losing £1m per month then it's worth nothing. Venkys should be paying someone to take it off their hands (ie write off the debt and get shut!)

[DE.]

With the debts, I can't see anybody willing to buy it. Without, Venky's could probably only realistically ask for the £15-£20m required to cover the "external" debts. A new owner would still be taking on a loss making club with facilities that require solid investment to maintain, plus the small matter of appointing an entire boardroom and rebuilding a decimated playing squad.

[T J Hooker]

Id say its now only worth the value of the land its built on at ewood and brockhall and the scrap metal value of the stadium

[ABBEY]

.

[booth]

Id say its now only worth the value of the land its built on at ewood and brockhall and the scrap metal value of the stadium

Much less I'd say. They'd need to offer it for a pound with those debts and even then they'd have to write some of it off.

If there really is three interested parties wanting the club then the Venkys are even more despicable.

[punerover]

Bloody hell! "7 amazing tricks to get any woman into bed? " Oh, sorry, the Venkys share price thing. How much was 5.5 billion INR's again. Did we ever find out? PuneRover - any ideas?

Anyway, it's very easy to sit here at this time of night and criticise, good on you Kamy for the idea and the effort and research. But I thought it was perhaps too long, do they even know about BRFC? Possibly not. What they do care about is cash, their cash and the reputation of the brand. Which is in tatters in the UK as a result of the Raos negligence / mismanagement.

Their way out and the only way to salvage Venkys rep in the UK?

"Put the club up for sale, pay off the debt - which has spiralled alarmingly during their disastrous ownership. This would be seen as a fantastic gesture not just by the Blackburn Rovers fans and the Blackburn public but by the wider general public. It would show just how generous Venkys can be and enable them to rebuild their reputation in the UK almost over night"

Like I said, just my twopenneth. I'm sure we could all write something slightly different (nothing would ever go out if we all had an input!) Fact is I didn't Kamy and you had the wherewithal to actually do something. Well played Sir!

30 odd million Pounds

[mhead]

Thanks Kamy. Anyone reading the letter will get the key messages.

I am sure you have thought about sending it to News Agencies and key Indian Newspapers.

I would think you could send it on behalf of Blackburn Rovers Supporters(Worldwide) without too many dissenting voices.

Thanks again.

[Leonard Venkhater]

Thanks for the comments.

I am getting the spelling and grammatical errors sorted and then will send it out again this morning/early afternoon.

This is a complete punt really as I don't know if it can or will lead to anything, however there does seem to be some tension between the Rao family and the Venky shareholders so it is worth a try to see if they can apply some internal pressure.

The very good news is having talked to the 2 Ian's over the last few days they remain interested in buying the club or failing that to work with Venky's to sort out the mess, they have a clear strategy on how they would turnaround the club. I also have heard that there are other consortiums interested, so there are options out there if Venky's decide to sell the club.

Thanks for all your efforts and thanks for coming back on the message board with the information...

[BlueMonday]

30 odd million Pounds

Small change in todays Billionaire market.

Thats why the Bank Of India are into it up to their nads.

The Raos are asset rich but cash poor.

[AllRoverAsia]

Thanks Kamy. Anyone reading the letter will get the key messages.

I am sure you have thought about sending it to News Agencies and key Indian Newspapers.

I would think you could send it on behalf of Blackburn Rovers Supporters(Worldwide) without too many dissenting voices.

Thanks again.

Damn fine idea

[Glosrover]

Excellent effort Kamy. Gotta give credit where credit is due.

This observations are just my personal opinion and I am NOT trying to belittle your efforts.

Having known first hand how shareholders think, I would be very surprised if you got any reaction at all. Smaller shareholders are mostly insignificant and mostly buy shares based on recommendations, hardly ever read annual reports nor ever attend a AGM. As for the larger ones they are mostly happy to rubber stamp anything the "management" proposes.

Sincerely hoping your letter will bring about some winds of change though. Again, great effort.

Hats off for trying, great initiative.

Trying to get my head around the potential risks as perceived by the Venkys shareholders though and whether the letter would prompt them to actually do anything.

The assets, balance sheet and debt relating to Rovers are as far as I know held by Venkys (London) limited, that enterprise is really a vanity project set up as a self-accounting subsidiary that has no capacity to actually 'hurt' the holding company, We're told that the loans of Venkys (London) ltd are secured against assets, future earnings and more recently against personal assets of one of the Rao familiy.

Other than the fact that the Venky name is being ridiculed in a country where they have very little revenue earning potential, unless there are accounting irregularities, evidence of unlawful activity or otherwise some indication that the directors are acting in a manner that would disqualify them from being fit to hold office; there isn't a smoking gun to use against the Raos.

I don't know if Venkys issue trade-able shares or if so, the quantity of these that would allow representation either in person or by proxy at a shareholders meeting so as to lodge questions in writing for submission to the board. It might be quite good fun to put the following to the board.

Gentlemen and Madam, - you have a subsidiary business [Venkys London Limited] whose performance we understand to be as follows -

the customer base has halved, its tradeable assets in the form of contracted employees progressively sold such that less than 10% of its original value remains, its' annual losses are accelerating and are currently over 20million pounds p.a. sterling against a declared £100M sterling debt, and its' fixed revenues in the form of payments from the English Football League will henceforth be substantively reduced . {Via he expiry of annual Premier League parachute payments and continued failure to achieve increased performance-related prize money].

The management structure has been decimated such that the local executive board that was up until the 2010 acquisition regarded as one of the 'best in class' does not function in a form that can adequate manage the business [save for production of the statutory accounts to Companys House -London, we note these are often late]. There is no coherent local decision making capacity, no accountability or responsibility, no expertise at any level of the sector in which this business operates, and no direction from the parent company.

The Directors would have appeared to have transformed a successful, well managed, highly regarded entertainment business and community asset into a loss-making laughing stock that has no sustainable business model or competent governance.

Could the Directors of Venkys please explain the justification for the continued ownership of this subsidiary, the extent to which the Directors are culpable for the current trading position and their statements of assurance that their lack of leadership, acumen and judgment will not eventually result in a similar decline of the core business in India.

We await your formal response

I haven't the first clue how I could even begin to get this into a shareholders forum, but it made me feel better writing it!