[Archived] Venkys London Ltd Accounts

[tomphil]

Few initial points:

- Even with no money spent on transfers and the efforts to reduce wages, there was still a £25m shortfall in cash. So the "losing £2m a month" line is worryingy accurate.

- This was covered by £7m extra cash put in from the owners in the year to March 2016 and £19m cash generated from player sales..

- Bank of India are still owed the £10m overdraft. There's also another 'other loan' which is charging a very high rate of interest of 14% because interest cost is £1.3m.

- Again significant funding is required to continue until June 2017. There is again a letter of support from the Venkatesh top company saying they will provide share captial if needed. Nothing legally binding though.

- Overdraft due March 2017

- I don't agree with the idea that Balaji has taken control. He didn't sign the accounts. He has equal control of the Venkys top company. I genuinely think it was an error on that particular submission to companies house.

- Laughably the Directors believe that the value of BRFC has increased since March 2015 and that there is "continued improving performance" Who has written that?? Shou;d be challenged at the next supporters' meeting.

- Commercial turnover up £3.5m to £3.6m

- Pension costs down massively £410k to £190k - who left in the year? Was it shaw/myres? That shows how much they were getting paid.

- Also received £58k of KPMG tax advise which is a lot for a small company

- Leon Best etc previously provided for have been paid off in the period.

- Without Rhodes/Hanley/Duffy the wage bill is probably down a bit, but then so will revenue, so its probably safe to say that we're losing c.£1m a month still. This £12m a year needs to either come from player sales or share capital. The £10m sales in summer + £2m share capital in November 2016 (?) will probably cover the club until March. After that it is hard to see where the money is going to come from.

- Overall given the wages are in the top 8/10 of the league, the excuse of not having the finances to compete is shown to be complete nonsense. It is just criminal mismangement of the resources that has caused the team to keep slipping downwards.

A massive summer scale down maybe that's why Mr Sporting and associates are here. Another huge struggle awaits next season if we stay up.

Also noticeable is despite the continual downscale wages never drop very much. How many staff do we have on the books these days i wonder ? Is that still rising as well......

[ABBEY]

so theres more evidence of akon job

[tomphil]

The hitlab incvestment was in 2011, been mentioned on here before

http://in.reuters.com/article/idINIndia-56189220110407

How to we know all the share capital actually finds it's way into Rovers in terms of cash anyway ? Apart from the stake in Akon of course

[den]

Thanks OJ.

Without continued "investment", we're down with the dead men. Anyone like to thank the owners for keeping us afloat?

[Dunnfc]

Few initial points:

- Even with no money spent on transfers and the efforts to reduce wages, there was still a £25m shortfall in cash. So the "losing £2m a month" line is worryingy accurate.

- This was covered by £7m extra cash put in from the owners in the year to March 2016 and £19m cash generated from player sales..

- Bank of India are still owed the £10m overdraft. There's also another 'other loan' which is charging a very high rate of interest of 14% because interest cost is £1.3m.

- Again significant funding is required to continue until June 2017. There is again a letter of support from the Venkatesh top company saying they will provide share captial if needed. Nothing legally binding though.

- Overdraft due March 2017

- I don't agree with the idea that Balaji has taken control. He didn't sign the accounts. He has equal control of the Venkys top company. I genuinely think it was an error on that particular submission to companies house.

- Laughably the Directors believe that the value of BRFC has increased since March 2015 and that there is "continued improving performance" Who has written that?? Shou;d be challenged at the next supporters' meeting.

- Commercial turnover up £3.5m to £3.6m

- Pension costs down massively £410k to £190k - who left in the year? Was it shaw/myres? That shows how much they were getting paid.

- Also received £58k of KPMG tax advise which is a lot for a small company

- Leon Best etc previously provided for have been paid off in the period.

- Without Rhodes/Hanley/Duffy the wage bill is probably down a bit, but then so will revenue, so its probably safe to say that we're losing c.£1m a month still. This £12m a year needs to either come from player sales or share capital. The £10m sales in summer + £2m share capital in November 2016 (?) will probably cover the club until March. After that it is hard to see where the money is going to come from.

- Overall given the wages are in the top 8/10 of the league, the excuse of not having the finances to compete is shown to be complete nonsense. It is just criminal mismangement of the resources that has caused the team to keep slipping downwards.

Fantastic post!

There it is everything what i've been thinking about and more, I posted previously especially concerning the interest rate which I've queried on here before! Refer to the last accounts though and it would suggest it was interest free then. Really good post which i could never have put into those exact words myself.

All gears to March... Administration, said we only had the working capital from Duffy and Hanley to last until then at the current burn rate. Isn't the 27th the last day to lodge administration letter engagements to the FA too?

Strap yourselves in, it's going to be a bumpy ride and it will take years to re-build but it's the start of something when it happens and we will get the club back.

Need a community order on Brockhole like we have with Ewood (BRAG?), it will be sold to pay admin/running costs which i imagine will be leased back to the club whether favorable or not rates from whomever buys. We need to broach Blackburn/Darwen council and quire a community asset order which has first refusal on the training facilities so hopefully the council will "Purchase" these assets when the time comes which should lend more favourable lease rates and sensible buy back options. I have to quiery and many did at the time player contracts, they'd have to be TUPE'd over which i imagine many will reject therefore will leave under freedom/broke contracts of the former club/company a debt we won't have compared to Portsmouth etc.

No one is going to purchase VLL or Blackburn Rovers & Athletic Ltd out of administration, that company will go into liquidation and be no more, it holds the current "FL Golden Share" of where the football rights are placed so it might be more than a 10 point penalty as it's not a usual football administration. A newco (New company) will need to be formed by the "buyers" and aquire the assets and goodwill left over from the administrators prior to the appointment of liquidators of which we will need to re apply to the football league for re-entry as a newco which will ultimately hold BRFC 2017, i would imagine this will be league 2, see both Luton and Leeds what did similar and had a 30 point penalty. I'd be inquisitive to see VAT/Nat/PAYE payments when they are due in March as they may hold these back for working capital i.e wages. HMRC to actually get in ahead of SBOI and wind it up?

No debentures on the club registered so only preferential creditors at the minute whom would be HMRC & SBOI with unsecured being everyone else. Would be interesting to keep close eye on Companies House over the next months to see any debentures or fixed charges registered by Venkys.

As mentioned the other day, I'm convinced Senior the low grade appointment is here to shift what he can in January to prolong administration, Venkys appear to have no funds from March, he will shift what he can so the club limps on.

Bank overdraft & Debt facilities to be re-agreed in March? No way. Not one bank in the world would loan to a bankrupt football club without heavy securities and more so being provided again in March.

I'd urge anyone who want's a part to play no matter how big or small to get to the MC&PK 1875 meetings as supporters to realise the extent of what you might not necessarily understand previously posted by OJ etc.

[MGAndy]

But Elton is playing in June

[Dunnfc]

But Elton is playing in June

Anyone who bought tickets and Elton will simply be a creditor, but i imagine the administrators who will probably run the club then will see it as a money spinner. Also anything planned will be in the sale agreement of Ewood to the next party, hopefully the council of which would probably honour these arrangements.

Said it for twelve months but Liverpool based and ex Chelsea, Pompey & Bolton administrator Trevor Birch is potentially the man.

[Amo]

And still people see no reason to protest in any way, shape or form. GET BEHIND 'EM FFS!!!

[Dunnfc]

And still people see no reason to protest in any way, shape or form. GET BEHIND 'EM FFS!!!

In the interests of being fair not every fan will understand those figures and recent good posts by many. I would suggest more people get to the supporters evenings arranged by Mark and Paul who will consisley and succinctly put it in black and white for all to understand, maybe PhillipL and Daniel Grabko might via a post too.

[1864roverite]

Brockhall cannot be sold. The debt is Venkys and it seems to me all Rovers actually owe is £25m which, if right, isn't too bad a thing especially when the chicken farmers leave us. BRFC appears still to be an attractive punt for someone

[yoda]

Brockhall cannot be sold. The debt is Venkys and it seems to me all Rovers actually owe is £25m which, if right, isn't too bad a thing especially when the chicken farmers leave us. BRFC appears still to be an attractive punt for someone

The confused ones will probably want £248 million for their £124 million "worth" of shares

[Dunnfc]

Brockhall cannot be sold. The debt is Venkys and it seems to me all Rovers actually owe is £25m which, if right, isn't too bad a thing especially when the chicken farmers leave us. BRFC appears still to be an attractive punt for someone

Expect it to run up, non payment of HMRC will result in signifficant fines and chancing creditors. Administrators can still also chase "Subsidiary" companies of what is owed?

Best to start a newco, debt free and interestingly enough Leeds did this via the BVI (british isles) and the FA could not then distinguish whom owned them whilst Ken Bates was actually appointed chairman on behalf of those unidentified parties/companies. Also didn't they get the 10 points deducted in the current season?

I'd suggest that maybe the way forward. Will leave it to those whom possibly may have better nous.

The confused ones will probably want £248 million for their £124 million "worth" of shares

Think you and I both know this is an attempt from them understanding it isn't going to happen. Might put a rather large dent in the family wealth though

[J*B]

Haven't we had this before RE Brockhall? It CAN be sold, I believe?

[Dunnfc]

Haven't we had this before RE Brockhall? It CAN be sold, I believe?

Exactly so we need an order slapping on it for first refusal to the council for community and sporting needs.

Lowers the asking price from possible administrators to interested parties whilst meaning the players have a "Training Home" in the future. In addition BWDC purchase means lesser lease costs.

[gumboots]

Brockhall is in the Ribble Valley ie Lancashire. Does that matter?

[Athlete]

Brockhall is in the Ribble Valley ie Lancashire. Does that matter?

Yes cos it's under a different council authority

[gumboots]

That's what I thought when Dunn was going on about bwd buying it. It's not on their land

[Paul]

Exactly so we need an order slapping on it for first refusal to the council for community and sporting needs.

Lowers the asking price from possible administrators to interested parties whilst meaning the players have a "Training Home" in the future. In addition BWDC purchase means lesser lease costs.

The chances of achieving an Asset of Community Value (ACV) on Brockhall, which is what you appear to be suggesting, are, in my opinion, very slim. Almost to the point of not worth attempting.

It's in Ribble Valley not BwD.

[Dunnfc]

The chances of achieving an Asset of Community Value (ACV) on Brockhall, which is what you appear to be suggesting, are, in my opinion, very slim. Almost to the point of not worth attempting.

It's in Ribble Valley not BwD.

The governing council or borough, i used BWD as not from the area/ Maybe financial backer needs to do this. For all we know it goes to some Indian in Pune to then pay exorbitant rents against etc.

The covenants of the land Paul, suggest almost use for sports itself, my idea would have to be to get it tied to that 100% making it prosperous to further BRFC activities? It's leasehold though at the minute so may just require a simple switcheroo on that front.

Probably not explained it too well in writing, all to much in my head!

[Roverall]

Dunnfc, you seem pretty nailed-on about administration coming in March.

Is that truly your reading of it?

[yoda]

Probably the only hope for Brockhall is RVC not approving any change of use applications

[cesus]

The chances of achieving an Asset of Community Value (ACV) on Brockhall, which is what you appear to be suggesting, are, in my opinion, very slim. Almost to the point of not worth attempting.

It's in Ribble Valley not BwD.

Living in the area I know just how much Ribble Valley Council love giving planning permission for houses, I'd not hold out too much hope of them backing us over getting income from the land from properties! Many a Burnley fan over here too!

[McClarky]

Brockhall cannot be sold. The debt is Venkys and it seems to me all Rovers actually owe is £25m which, if right, isn't too bad a thing especially when the chicken farmers leave us. BRFC appears still to be an attractive punt for someone

I don't think it's that straight forward though. Vs have shown no sign of writing off their debt or selling the club snd unless they are willing to do that the club owes the full amount if £130m or so. More likely that they recoup as much as they can while they can and then keave their debt in the company that owns the club.

[bob fleming]

Living in the area I know just how much Ribble Valley Council love giving planning permission for houses, I'd not hold out too much hope of them backing us over getting income from the land from properties! Many a Burnley fan over here too!

Not quite that simple.

The Trust looked clarify the situation and released this back in Sept

http://www.roverstrust.com/2016/09/20/brockhall-ewood-ownership-briefing

[bob fleming]

I don't think it's that straight forward though. Vs have shown no sign of writing off their debt or selling the club snd unless they are willing to do that the club owes the full amount if £130m or so. More likely that they recoup as much as they can while they can and then keave their debt in the company that owns the club.

How do the Bank of India think they'll get their money back?

The assets of Blackburn Rovers? Er, erm, Ben Marshall and er.... ? After that, what exactly? Remember, I'm sure we all do, we're talking £130m here! Covered by assets of the club?? I'd suggest that someone at the BoI is going to be somewhat shocked if that really is the case.

We keep, hearing / reading that it's secured against land that Barry owns. Let's hope that is the case. I mean that must be the case right? No one at the BoI is that dumb are they? "Yes, Jason Steele, he's worth £12m, Jason Lowe, young player, Captain, £35m. In fact anyone called Jason is worth a fortune. Don't worry"