[Archived] 40 Venky's Premises raided by Indian Tax Officials

[tomphil]

The BOI or Venkys send first lot in to get books in order and give them a review then FA or similar send next lot in to ease any suspicions and see if they'll ok lending another 5 mill for tjis season.

Could be as long and short as that .

[broadsword]

After seven years of false hope, I refuse to get excited. 

If  they do ever depart the scene of the crime, I expect none of us will see it coming beforehand. 

It's surreal to think that next year we'll be in the third tier. We were nowhere near there when these morons turned up. I don't think they can cut costs much further. Unless cheston becomes manager and does the cleaning

[tomphil]

Yes if they did sel it's likely the first anyone would know about it would be when the phone rang in Chestons office and Pasha said good morning Magic I'm passing you over to Mr XYZ he's your new boss and new owner of the club please register thde paperwork im faxing !

[Brian-Potter]

1 hour ago, Randy_Synge said:

So...

No comment about 'fully supporting' the club as per previous years.

Radio silence from all at Ewood in stark contrast to the soundbytes we have grown accustomed to from the likes of Cheston.

Two sets of accountants at Ewood.

Are the awful Raos on their way?

The fact that they have just injected close to £6m makes me think otherwise

[JHRover]

Are there other examples of clubs for sale/being bought that publicly have 2 sets of major accountants parachuted in for weeks on end to go through the fine details?

I've never heard of anything like this at any other football club. Usually when a club is being bought, especially by a foreign buyer, things are very much kept under wraps and due diligence can be carried out from afar by inspecting the books from anywhere in the world. They don't usually need a team of accountants costing half a million quid to spend a month at the club itself looking at everything. The selling party certainly shouldn't need it.

The fact that someone at the club, most likely Cheston, has confirmed this to the Telegraph (as no story is published without agreement from the club it appears) also suggests this is something they are happy to be made public and isn't some highly confidential sale process underway.

[AllRoverAsia]

Yet another Statement from the Owners.

Rovers are our Baby. We Are Coming For You.

[tomphil]

I think it's certain one of those firms involved will be acting for a 3rd party not the Vs or their bankers and no way would that come out in public at a time the club is desperate to sell early bird STs.

The FA, taxman, other authorities or potential financiers would all come before a new buyer in the guessing stakes imo. Maybe just a coincidence but  its odd that  team goes in Rovers then a few days later Venkys India gets a massive pull from their tax people. With all the crap and cloak and dagger stuff that's gone on for the last 7 years maybe just maybe something has prompted someone to finally take a close look. 

[gumboots]

Just now, JHRover said:

Are there other examples of clubs for sale/being bought that publicly have 2 sets of major accountants parachuted in for weeks on end to go through the fine details?

I've never heard of anything like this at any other football club. Usually when a club is being bought, especially by a foreign buyer, things are very much kept under wraps and due diligence can be carried out from afar by inspecting the books from anywhere in the world. They don't usually need a team of accountants costing half a million quid to spend a month at the club itself looking at everything. The selling party certainly shouldn't need it.

The fact that someone at the club, most likely Cheston, has confirmed this to the Telegraph (as no story is published without agreement from the club it appears) also suggests this is something they are happy to be made public and isn't some highly confidential sale process underway.

Its "the what the heck is going on?" that is causing the speculation. It cant simply be looking for ways to cut costs, surely. Has to be something bigger, but what? In the absence of fact speculation abounds and the lack of interest from the press because were now an insignificant 3rd division club makes it harder to get at the truth

[MCMC1875]

Just now, tomphil said:

I think it's certain one of those firms involved will be acting for a 3rd party not the Vs or their bankers and no way would that come out in public at a time the club is desperate to sell early bird STs.

The FA, taxman, other authorities or potential financiers would all come before a new buyer in the guessing stakes imo. Maybe just a coincidence but  its odd that  team goes in Rovers then a few days later Venkys India gets a massive pull from their tax people. With all the crap and cloak and dagger stuff that's gone on for the last 7 years maybe just maybe something has prompted someone to finally take a close look. 

The FA - not interested in BRFC

HMRC - send in their own people ref. Newcastle & West Ham

Other authorities - wouldn't be allowed in.

Potential financiers - not attractive enough

New buyer - only suggestion that makes sense

[Bigdoggsteel]

Getting massively ahead of myself. Should the new billionaire owners keep Mowbray? I definitely think they should. The few months he has spent here evaluating what we had is irreplaceable and invaluable. 

*post semi-tongue in cheek 

[USABlue]

20 hours ago, West Yorks Rover said:

New first choice shirt for next season ? maybe the Chinese think blue is unlucky.

All rumour about the Chinese but are there any Chinese ownerships that have gone well for the football teams.  Seems like I hear horror stories.

[PAFELL]

37 minutes ago, Brian-Potter said:

The fact that they have just injected close to £6m makes me think otherwise

Maybe this money is just to pay for these accountants

[Dunnfc]

Just now, USABlue said:

All rumour about the Chinese but are there any Chinese ownerships that have gone well for the football teams.  Seems like I hear horror stories.

I think the lad at villa is a decent type and then WBA seems ok

[tomphil]

21 minutes ago, MCMC1875 said:

The FA - not interested in BRFC

HMRC - send in their own people ref. Newcastle & West Ham

Other authorities - wouldn't be allowed in.

Potential financiers - not attractive enough

New buyer - only suggestion that makes sense

The FA had a loan in BRFC didn't they ? Therefore i'd say they might have an interest especially if we are after more.

[Dunnfc]

1 hour ago, Brian-Potter said:

The fact that they have just injected close to £6m makes me think otherwise

I wouldn't be so sure, you'll understand this.

Looking at the VLL accounts for up to March 31st 2016 then to the BRFC ones 30th June 2016 - look at the overdraft positions in both, add the fact a 1.8 million mortgage was taken out against future revenues then add up the amounts it's a very similar figure to what has just been put in 5.7million. And that is before we've had to pay the mortgage of in this calendar year and possible KPMG fee's now being potencially offset by the drop in wages. I'm of the opinion a figure of this region was always needed. Especially when you forecast quite accurately what turnover against expenditure possibly looks like this season just been.

 

 

[RoversClitheroe]

2 hours ago, tomphil said:

The BOI or Venkys send first lot in to get books in order and give them a review then FA or similar send next lot in to ease any suspicions and see if they'll ok lending another 5 mill for tjis season.

Could be as long and short as that .

Wouldn't come here for 2-4 weeks if it was that! 

[Brian-Potter]

6 minutes ago, Dunnfc said:

I wouldn't be so sure, you'll understand this.

Looking at the VLL accounts for up to March 31st 2016 then to the BRFC ones 30th June 2016 - look at the overdraft positions in both, add the fact a 1.8 million mortgage was taken out against future revenues then add up the amounts it's a very similar figure to what has just been put in 5.7million. And that is before we've had to pay the mortgage of in this calendar year and possible KPMG fee's now being potencially offset by the drop in wages. I'm of the opinion a figure of this region was always needed. Especially when you forecast quite accurately what turnover against expenditure possibly looks like this season just been.

 

 

Yes looking at both sets of accounts that does seem to be a logical explanation. Looking at the financial commitments and dates it does fit.

[funny-old-game]

Just now, Brian-Potter said:

Yes looking at both sets of accounts that does seem to be a logical explanation. Looking at the financial commitments and dates it does fit.

So in  layman's terms what does it mean ?

[Brian-Potter]

Basically that they were well aware that this cash injection would be needed well in advance and that it was made to ensure the club remained operating within its bank facilities and met its other financial obligations as they became due.

Technically that they had no choice other than to invest.

Again there is an element of speculation and drawing of conclusions, as with this whole saga.

[tomphil]

Where do the silent partners fit into all this i wonder ?  Crescendo and the others formerly known as SEM & Kentaro and of course Dick Dasterdly himself all who have had such a say ( and possibly money ) in the club and who were/are contracted to basically run the show.

[lraC]

Just now, tomphil said:

Where do the silent partners fit into all this i wonder ?  Crescendo and the others formerly known as SEM & Kentaro and of course Dick Dasterdly himself all who have had such a say ( and possibly money ) in the club and who were/are contracted to basically run the show.

They may have run away now, leaving the owners tied up in the murky world of football. Of course they may well have left some DNA around, which may well still incriminate them and could be the reason why the two forms of accountants are amongst us.

[tomphil]

Just now, lraC said:

They may have run away now, leaving the owners tied up in the murky world of football. Of course they may well have left some DNA around, which may well still incriminate them and could be the reason why the two forms of accountants are amongst us.

Certainly hope so.

[Dunnfc]

27 minutes ago, Brian-Potter said:

Basically that they were well aware that this cash injection would be needed well in advance and that it was made to ensure the club remained operating within its bank facilities and met its other financial obligations as they became due.

Technically that they had no choice other than to invest.

Again there is an element of speculation and drawing of conclusions, as with this whole saga.

I think it’s highly plausible and probable to be fair. The forecasted EOY accounts are pretty accurate and most figures taken are from 2016 except the wages in which Alan Nixon confirmed are around that mark down from 22million in 2016. Additionally an excepted 650k drop in match day revenue would be offset against the big pay day against Man Utd in the fa cup with similar results witnessed in the 2015 accounts from the Liverpool  game. I didn’t make a deduction on the commercial revenue side given the current Dafabet deal is still in place till June 2017 and is our big sponsor at around 1 million per annum. The solidarity and media costs are easily defined by the efl website (links previously posted) so I would say the costs of revenue are quite an accurate assumption.

 

Additionally expenditure is aligned with the 2016 accounts in which I’ve assumed given Cheston has made savings annually of around 700k 1.5 million in the last couple of years in operating expense that we would expect to see an incremental further saving of SAY 500k. Interest only payments can be calculated and have been from the data in the accounts available based on the publication of the amounts owed from 30^th June + and the respective APR levels. Additionally that has been replicated within the loans been repayed in a similar manner.

 

Conclusion - We had a current maxed out overdraft of 14 million in March, knocked back for a loan and the owners put the cash in to keep it going till end of June. 8 million required at least on top of the summer reveunes made to keep us ticking along.

 

[lraC]

Just now, Dunnfc said:

I think it’s highly plausible and probable to be fair. The forecasted EOY accounts are pretty accurate and most figures taken are from 2016 except the wages in which Alan Nixon confirmed are around that mark down from 22million in 2016. Additionally an excepted 650k drop in match day revenue would be offset against the big pay day against Man Utd in the fa cup with similar results witnessed in the 2015 accounts from the Liverpool  game. I didn’t make a deduction on the commercial revenue side given the current Dafabet deal is still in place till June 2017 and is our big sponsor at around 1 million per annum. The solidarity and media costs are easily defined by the efl website (links previously posted) so I would say the costs of revenue are quite an accurate assumption.

 

Additionally expenditure is aligned with the 2016 accounts in which I’ve assumed given Cheston has made savings annually of around 700k 1.5 million in the last couple of years in operating expense that we would expect to see an incremental further saving of SAY 500k. Interest only payments can be calculated and have been from the data in the accounts available based on the publication of the amounts owed from 30^th June + and the respective APR levels. Additionally that has been replicated within the loans been repayed in a similar manner.

 

Conclusion - We had a current maxed out overdraft of 14 million in March, knocked back for a loan and the owners put the cash in to keep it going till end of June. 8 million required at least on top of the summer reveunes made to keep us ticking along.

 

The knocked back for a loan is very significant, as once that happens with one lender, it often means struggling elsewhere too. So I guess it is either pump some more in, or start to default. We need more to be pumped in yet, as stated.

[chaddyrovers]

Nixon published the accountant story on Sunday. So it was in the public domain so the owners just confirmed it. And never said why..

I think these accountants are here to sort through the account book and make sure everything is right. And that a takeover can happen quick. Who these are potential new owners are we dont. 

Supposedly these accountants are here to end of May. So lets see what happens after they leave