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

[RoversClitheroe]

2 minutes ago, J*B said:

When you sell a house, do you get one estate agent around and immediately put it up for sale at whatever they recommend? Or do you ask 3 agents round and get a consensus? Assuming your not an estate agent!!

Do you think it's a sale then? 

[J*B]

Just now, RoversClitheroe said:

Do you think it's a sale then? 

Not at all! The point I'm trying to make is when joe public sells their house (something of high value to them, but they're not clued up on) they go to estate agents. If they're clever, they get more than 1 estate agent in and review all the prices before choosing who to go with.

The bank are doing the exact same. They lend to Venkys, who have a football club that is massively in debt. The bank need assurances the club is still solvent. So they are getting assessments from people that understand football. Like the house sale scenario, they don't know enough about football to just go with one assessment, so they get two to make sure there's no big differences. Undoubtably it's not going to come back good news - but Venkys are huge clients. So they will ask Venkys to plug to gap to make it sustainable. 

[1864roverite]

It doesn't make any sense at all no matter which way you look at it.

We have all read and heard rumour and speculation and some utter rubbish YET there is nothing, I repeat NOTHING that we as fans can go on other than rabid speculation.

2 sets of accountants doesn't make sense for a review, I don't accept it and I believe there may be slightly more to be read towards a sale rather than not. I am just giving my opinion and nothing more. The rumour mill is in overdrive and in this close season, Rovers fans are already ruining the summer break for themselves as a result of this.

Its time to take a break from football. Whatever happens will happen, its no good trying to work out conspiracies or theories with this set of runts in charge, its not good getting one self worked up as the persistent wall of silence from Ewood, Cheston and co can take a running jump from Blackpool pier, he is just as culpable as that lot of clowns from India for the current state of BRFC.

The club is in the last throes of life, its waiting for the last rites or alternatively the much needed CPR may be just around the corner to breathe new life and revive the soul and heartbeat of the club.

Enjoy summer people, its going to be a long hard drag.

[Pedro]

Depends how many parties own the club I suppose ?

[Dunnfc]

Just now, Pedro said:

Depends how many parties own the club I suppose ?

2! Given Suhail was at Kentaro/Crescendo offices months before the takeover, going to games with JEROME and all sorts of ex staff signed up with Crescendo contracts before the takeover then it could be both!

[cesus]

The harshest part of our demise under the ownership (I'm struggling to call it that trust me) of these leeches is that they actually purchased us when just running us correctly with everything that was in place would have literally earned them "free money".

Nick Harris the journalist has released a report tonight on twitter (think he writes for the mail) showing Man United have earned £1 Billion in Premiership prize money alone. What really caught my eye and most certainly made them water was in our 18 years as a Premiership club we amassed £407.4m in prize money, our friends down the road have made £277.4m in 3 seasons in the premiership. This season has made them circa of £109.5m alone. We literally fell away when survival season on season would have made them even richer and they could have actually made cash from the club, certainly more than any agent could have ever made them (unless we negotiated Paul Pogbas deal every season!)

[blueboy3333]

http://www.lancashiretelegraph.co.uk/sport/football/rovers/news/15299298.Rovers__parent_company_Venky_s_London_Limited_increases_share_capital_by_almost___6m_in_last_two_months/?ref=mac

THE share capital of BRFC parent company, Venky’s London Limited (VLL), has increased by almost £6m in the last two months.

What does this actually mean in practice? They've put money in to Rovers? They've turned debt into shares?

[yoda's brother]

6 hours ago, blueboy3333 said:

http://www.lancashiretelegraph.co.uk/sport/football/rovers/news/15299298.Rovers__parent_company_Venky_s_London_Limited_increases_share_capital_by_almost___6m_in_last_two_months/?ref=mac

THE share capital of BRFC parent company, Venky’s London Limited (VLL), has increased by almost £6m in the last two months.

What does this actually mean in practice? They've put money in to Rovers? They've turned debt into shares?

they've put a bob in the meter

[Tyrone Shoelaces]

Just now, yoda's brother said:

they've put a bob in the meter

You're showing your age there.

[jim mk2]

8 hours ago, cesus said:

The harshest part of our demise under the ownership (I'm struggling to call it that trust me) of these leeches is that they actually purchased us when just running us correctly with everything that was in place would have literally earned them "free money".

Nick Harris the journalist has released a report tonight on twitter (think he writes for the mail) showing Man United have earned £1 Billion in Premiership prize money alone. What really caught my eye and most certainly made them water was in our 18 years as a Premiership club we amassed £407.4m in prize money, our friends down the road have made £277.4m in 3 seasons in the premiership. This season has made them circa of £109.5m alone. We literally fell away when survival season on season would have made them even richer and they could have actually made cash from the club, certainly more than any agent could have ever made them (unless we negotiated Paul Pogbas deal every season!)

Yep, it's galling for us and them - though their arrogance is such I doubt they would admit to making any mistakes since taking over.

The Walker Trust must be kicking themselves too. 

[Stuart]

Burnley aside, how many of the club's listed are making a profit? Or aren't in massive debt?

It says more about the state of football that there is so much money being doled out but it is "leaving football" as obscene wages or obscene agents fees, while the club's operate on huge debt stacked against the club.

The bubble seems unbreakable but when it does finally pop it will wipe out football as we know it.

[blueboy3333]

9 hours ago, blueboy3333 said:

http://www.lancashiretelegraph.co.uk/sport/football/rovers/news/15299298.Rovers__parent_company_Venky_s_London_Limited_increases_share_capital_by_almost___6m_in_last_two_months/?ref=mac

THE share capital of BRFC parent company, Venky’s London Limited (VLL), has increased by almost £6m in the last two months.

What does this actually mean in practice? They've put money in to Rovers? They've turned debt into shares?

Could the board experts on finance please answer. Genuinely interested to know. 

[Dunnfc]

47 minutes ago, blueboy3333 said:

Could the board experts on finance please answer. Genuinely interested to know. 

If you go to that post then the next page or so plenty got answered on there i think.

[blueboy3333]

Just now, Dunnfc said:

If you go to that post then the next page or so plenty got answered on there i think.

They don't unfortunately which is why I asked the specific questions. You'll be answer them, you know your stuff.

"THE share capital of BRFC parent company, Venky’s London Limited (VLL), has increased by almost £6m in the last two months......VLL, who own a 99.99 per cent stake in Rovers, have now issued share capital of over £132m" - from the article

What does this actually mean in practice? They've put money in to Rovers? They've turned debt into shares?  Do BRFC owe Venky's £132m?

 

[Sparks Rover]

Looks like funding on paper

[Dunnfc]

Just now, blueboy3333 said:

They don't unfortunately which is why I asked the specific questions. You'll be answer them, you know your stuff.

"THE share capital of BRFC parent company, Venky’s London Limited (VLL), has increased by almost £6m in the last two months......VLL, who own a 99.99 per cent stake in Rovers, have now issued share capital of over £132m" - from the article

What does this actually mean in practice? They've put money in to Rovers? They've turned debt into shares?  Do BRFC owe Venky's £132m?

 

It's a capital injection, so VLL being the parent company of BRFC, has meant Venkys have purchased 5.7 milion of £1.00 shares in VLL for director funding, that in turn will allow the capital to be dripped into BRFC which will be done by subscribing for more shares in BRFC. 

As opposed to loaning the money and adding to the 87.5 million they are owed, they've just taken the hit straight up. No different to what the walkers used to do, it just means effectively you have 132 million of £1.00 shares in issue of the parent company and xxxx amount in BRFC, the shares as it is in our current predicament are worthless, and only serve in the accounts to hit the P&L of capital and shareholders deficit. 

Expect to see a new shares document for BRFC filed shortly.

[Exiled_Rover]

14 hours ago, cesus said:

The harshest part of our demise under the ownership (I'm struggling to call it that trust me) of these leeches is that they actually purchased us when just running us correctly with everything that was in place would have literally earned them "free money".

Nick Harris the journalist has released a report tonight on twitter (think he writes for the mail) showing Man United have earned £1 Billion in Premiership prize money alone. What really caught my eye and most certainly made them water was in our 18 years as a Premiership club we amassed £407.4m in prize money, our friends down the road have made £277.4m in 3 seasons in the premiership. This season has made them circa of £109.5m alone. We literally fell away when survival season on season would have made them even richer and they could have actually made cash from the club, certainly more than any agent could have ever made them (unless we negotiated Paul Pogbas deal every season!)

It's all relevant though.

Emerton et al were on less than £40k a week I'd guess.

Now you have Rooney on £250k per week and dross like Zaha demanding £110k per week. 

That's before you look at the absurd transfer fees being paid out. 

 

[tomphil]

I would imagine one of these sets of accountants will be going through every pen, paper clip, ball and blade of grass to get an a precise exact value on the whole club just incase Vs don't or can't stump up. The liquidiser will be fired up then with a gradual desposal of assets.

[AggyBlue]

2 hours ago, tomphil said:

The liquidiser will be fired up then with a gradual desposal of assets.

The Rao's might be looking at the disposal of assets

[1864roverite]

10 hours ago, AggyBlue said:

The Rao's might be looking at the disposal of assets

There NONE at the club, they have all been sold apart from the Premier League trophy and the steel that holds the stadium together, oh yes I almost forgot, the Jack Walker memorial garden and statue !

VENKYSOUT

[joey_big_nose]

19 hours ago, tomphil said:

I would imagine one of these sets of accountants will be going through every pen, paper clip, ball and blade of grass to get an a precise exact value on the whole club just incase Vs don't or can't stump up. The liquidiser will be fired up then with a gradual desposal of assets.

If that was the case why pump 6m in?

[tomphil]

Just now, joey_big_nose said:

If that was the case why pump 6m in?

Think that's been answered numerous times, no choice @#/? or bust.  There is still a 15 mill overdraft facility to the bank plus whatever othr borrowing they used from them to run the club so the BOI will want to know there is enough to cover their bit should it become necessary to quickly grab it back i reckon.

[JHRover]

It's safe to assume that had Venkys not put that £6 million in that at the very least we'd be in administration now and probably have the gates at Ewood Park padlocked.

Whilst they might not be comfortable pouring millions more into the club the way it is operating means that they simply had to. Outside of a transfer window and with no players of value close to that left to sell their choice was a simple one. Stump up the money themselves or lose the club by dropping it into administration.

People have been expecting administration for several years and every time they do just enough to keep us out of it. I think that will continue.

The accountants sent in are possibly a case of Venkys wanting a complete thorough breakdown of everywhere their money goes on a monthly basis and if any of that can be saved. Short of selling land (lengthy and complex process) there isn't really much more can be done. Widespread redundancies won't save them £6 million if they're getting rid of cleaners and shop staff.

The question is will they be able or prepared to shovel another few million in later this year or will enough be enough when the report lays it bare before them what this is going to cost moving forward.

[tomphil]

Imo if say Lowe was still contracted and there were clubs sniffing around him and maybe a fit Evans with real intent to bid then there'd have been no 6 mill injection the bank would probably have been happy to stretch it out until the window opened knowing full well there'd be another influx of transfer money.

It's the most they've whacked in one go since before Cairney was sold i think so it was a case of necessity not generosity or fowrad planning i think we can be sure of that. 

[Dunnfc]

Okay straight from the club, they've come back to me with the following statement:

Quote

 

I understand there any many rumours circulating presently with regard to Deloitte and KPMG carrying out work at the club.  In answer to your questions I can confirm both companies are carrying out their work over a four week period and will then submit individual reports.  They have both been appointed on the same terms by Blackburn Rovers Football Club on behalf of the owners.  Their remit is to look at all areas of the business in order to identify areas where the club could be more efficient, which would involve identifying  areas requiring further investment and to benchmark against other clubs.

 

I hope this clarifies the matter.