[Archived] Venkys London Ltd Accounts

[MCMC1875]

I am not an accountant mate, I am a financial adviser, mainly dealing with Mortgages. I am used to looking at accounts for small Limited companies, but wouldn't like to say, I am an expert and certainly not on football clubs accounts. Things like amortisation for example, when it come to football clubs, leaves me baffled. I have only skimmed though them so far, but will have a proper look and pass comment. I think Mercer Man is the guy on here who has made most sense with accounts in the past, so perhaps his posting is the one to look out for. I am sure he will be making one about them soon.

His betting tips are cr@p though.

[eddy11d]

How much does The Blackburn Rovers Football and Athletic Limited actually owe? Isn't the £100 million everyone is taking about Venkys London Limited's debt and not ours? What would be the benefit to Venkys for us to go into administration? They aren't getting their money back whether we go into administration or not.

[Athlete]

How much does The Blackburn Rovers Football and Athletic Limited actually owe? Isn't the £100 million everyone is taking about Venkys London Limited's debt and not ours? What would be the benefit to Venkys for us to go into administration? They aren't getting their money back whether we go into administration or not.

They've nothing to get back it's the Boi

[tomphil]

Surely if VLL lends to BRFC it's then the clubs debt ?

[yoda]

Surely if VLL lends to BRFC it's then the clubs debt ?

Not when they have converted it to fully paid up shares

Yes. Is that not debt then?

No, they own the shares.

It would be "debt" if it appeared on the Directors account

[G Somerset Rover]

I have read right through this thread and even though I have a financial background, do find some of the posts a bit confusing. One big think that occurs to me, is the possibility of the club folding and having to start again, from the lowest tier. If that did happen (and I pray I won't) there are going to be a lot of people with a lot of questions to answer.

As we are all aware on here, the fans for starters, almost from the very start have been asking why Venky's, Anderson, Kean, the FA the football league ETC have been able to get away with what they have? It may be naïve, but with so much evidence, already out there, I can't see how certain individuals and organisation, could possibly allow that to happen. There would be such a huge enquiry that wrong doing is bound to come out and I am certain some of it would be so serious the custodial sentences, would surely be dished out.

If we go under I sure as sh!t hope we manage to drag the likes of JA, Kean and the V's with us. Seeing those guys with custodial sentences would at least give us something to smile about.

[eddy11d]

They've nothing to get back it's the Boi

The BOI lended the money to Venkys not Rovers though, I'm guessing the loans are secured against assets in India rather than our assets. Ewood and brockhall clearly aren't worth £100+ million.

[Mercer]

Have skimmed through this thread and also the accounts (comments therefore come with a health warning). I will try and have a look at the accounts in more detail over the next few days.

However, some brief points:

These accounts are for the year to March 2016 and comprise the company (VLL) and its subsidiaries (mainly Blackburn Rovers Football and Athletic Limited). You will see reference/statements to/for the consolidated group (VLL and its subsidiaries <Rovers>) and the company (VLL). In the consolidated accounts, interco stuff and balances between group cos are therefore eliminated/cancelled in their entirety.

First thing that struck me when looking at the company balance sheet (VLL) concerns VLL's debtors (what Rovers owe VLL) and when payment is due. In March 2015, £80.7m was due after more than one year. At March 2016, £86.7m is due in less than 12 months' time meaning VLL, theoretically, expect Rovers to repay the £86.7m BEFORE 31 March 2017 - in other words, in less than 12 weeks' time !!!!

I would estimate Rovers' debt, other than to VLL, to be approx. £25m.

For clarification, BOI overdraft is to Blackburn Rovers Football and Athletic Limited. Irrespective of whether BOI have land in India as security for these monies, Rovers are its debtor and BOI will come banging on Rovers' door first. At the end of the day, BOI may only enforce its security on the Indian land should all avenues to recover from Rovers be exhausted - in other words, if Rovers entered an insolvency process.

IMV, these accounts are a huge cause for concern and it might be the beginning of the end for Rovers.

[ABBEY]

venkys still here and coyle....so i wont be paying your ramblings any time.

[Mercer]

venkys still here and coyle....so i wont be paying your ramblings any time.

Do as you wish Abbey.

I've given a quick professional view on the accounts. If it's not appreciated, I wont bother any more. I've better things to do.

[JAL]

Could Owen Coyle become a debtor on April 1st ?

[yoda]

Do as you wish Abbey.

I've given a quick professional view on the accounts. If it's not appreciated, I wont bother any more. I've better things to do.

Have they not converted a portion of that debt to fully paid up shares since

Could Owen Coyle become a debtor on April 1st ?

He won't become a manager any time soon

[eddy11d]

Have skimmed through this thread and also the accounts (comments therefore come with a health warning). I will try and have a look at the accounts in more detail over the next few days.

However, some brief points:

These accounts are for the year to March 2016 and comprise the company (VLL) and its subsidiaries (mainly Blackburn Rovers Football and Athletic Limited). You will see reference/statements to/for the consolidated group (VLL and its subsidiaries <Rovers>) and the company (VLL). In the consolidated accounts, interco stuff and balances between group cos are therefore eliminated/cancelled in their entirety.

First thing that struck me when looking at the company balance sheet (VLL) concerns VLL's debtors (what Rovers owe VLL) and when payment is due. In March 2015, £80.7m was due after more than one year. At March 2016, £86.7m is due in less than 12 months' time meaning VLL, theoretically, expect Rovers to repay the £86.7m BEFORE 31 March 2017 - in other words, in less than 12 weeks' time !!!!

I would estimate Rovers' debt, other than to VLL, to be approx. £25m.

For clarification, BOI overdraft is to Blackburn Rovers Football and Athletic Limited. Irrespective of whether BOI have land in India as security for these monies, Rovers are its debtor and BOI will come banging on Rovers' door first. At the end of the day, BOI may only enforce its security on the Indian land should all avenues to recover from Rovers be exhausted - in other words, if Rovers entered an insolvency process.

IMV, these accounts are a huge cause for concern and it might be the beginning of the end for Rovers.

Would the BOI come for our assets before the assets in India?

[chaddyrovers]

Do as you wish Abbey.

I've given a quick professional view on the accounts. If it's not appreciated, I wont bother any more. I've better things to do.

Keep posting please Mercerman.

Just ignore the others

[tomphil]

For the 25 million overdraft for day to day running costs they most certainly would.

[yoda]

Keep posting please Mercerman.

Just ignore the others

Can't help your self can you

[Dunnfc]

Keep posting please Mercerman.

Just ignore the others

Obviously Chadds you've listened with interest on this thread, what is your thoughts now a few have posted opinions concerning the accounts?

[tomphil]

To be fair I think the bank facility has been renewed certainly yearly over the Venkys ownership. Given cash flows submitted its going to show quite a decrease in turnover which is why I'm nervous the rug could possibly be pulled especially the brokhole rumours, venketash rumoured to flog some shares and Desai leaving the board.

Yes iv'e noticed that and it always seems to get sorted like everything else Vs tend to pull it out the fire at the last min. Suppose it's telling that the bank only commits to 12 months at a time these days considering Venkys keep telling us it's a long term project!

The thing for me is the utter wool pulling rubbish in the opening statement about going for the Prem when nothing could be further than the truth but that's probably the kind of flanneling lies they tell everyone.

Why don't they just say they remain committed to getting the club on a sound financial footing in the next couple of years by sensible prudent cost control and player trading where necessary whilst reinvesting what's available to rebuild a competitive young squad.

Is it so difficult to do that for the good of the club and actually be honest about it.

[eddy11d]

For the 25 million overdraft for day to day running costs they most certainly would.

So the £25 million the club actually owes is to the bank of india as well? I thought someone else on here said we only had a £10 million overdraft and have done since before Venkys?

[tomphil]

So the £25 million the club actually owes is to the bank of india as well? I thought someone else on here said we only had a £10 million overdraft and have done since before Venkys?

Bank of India handle the day to day finances for sure but not sure of the total amount. Maybe the 25 mill external isn't all to them but that's club debt whoever it's come from.

[Dunnfc]

When purchasing the club, they took on 21 million of debt. https://www.theguardian.com/football/2010/nov/19/venkys-completes-takeover-blackburn-rovers

[chaddyrovers]

Obviously Chadds you've listened with interest on this thread, what is your thoughts now a few have posted opinions concerning the accounts?

Well firstly I am not accountant but I would say they are mess and I feel that we are entering a period where I feel they will look to sell the club.

I dont see that putting the club in adminstration cos they lose control and that one thing they always have done and never trust a proper CEO to run the club for them.

Have Mrs D and Mr D washed their hands of the club and not allow any more money to put into the club?

Are Mrs D and Mr D still shareholders? Are Balaji and Venktash the only shareholders now?

Can Balaji run the club from his own personal wealth? Does he have a business brain to do it?

I would like to hear the thoughts of a qualified accountant like Philipl or Andy Neil on the accounts aswell?

[yoda]

Well firstly I am not accountant but I would say they are mess and I feel that we are entering a period where I feel they will look to sell the club.

I dont see that putting the club in adminstration cos they lose control and that one thing they always have done and never trust a proper CEO to run the club for them.

Have Mrs D and Mr D washed their hands of the club and not allow any more money to put into the club?

Are Mrs D and Mr D still shareholders? Are Balaji and Venktash the only shareholders now?

Can Balaji run the club from his own personal wealth? Does he have a business brain to do it?

I would like to hear the thoughts of a proper accountant like Philipl or Andy Neil on the accounts aswell?

What do you mean by a proper accountant Chaddy ?

[chaddyrovers]

What do you mean by a proper accountant Chaddy ?

Wrong word maybe. Qualified accountant

[yoda]

Wrong word maybe. Qualified accountant

No probs,

I see you still have me blocked from PM's