http://www.telegraph.co.uk/sport/football/teams/blackburn-rovers/8924269/Blackburn-Rovers-owners-Venkys-under-the-microscope-as-Barclays-Bank-demands-reduction-in-clubs-debt.html
Blackburn Rovers’ owners are under pressure from Barclays Bank to reduce the club’s debts, Telegraph Sport can reveal. The club owe at least £21 million to Barclays, and it is understood that Venky’s - which is owned by the Rao family - agreed to reduce the debt when they took control at Ewood Park. A year later that has not happened though, prompting the bank to demand more security against its loans as the club face possible relegation.
The bank’s position will increase concern among supporters about the financial situation at the club, and raises fresh questions about the owners’ strategy and their readiness to meet the financial demands. Venky’s paid £23 million to buy the club from the Jack Walker family trust last year, assuming responsibility for £21 million of debt to Barclays that the club were already carrying. The debt was secured against Ewood Park and all the club’s other property assets, as well as Venky’s’ newly-purchased shares in Blackburn, and it is understood that an undertaking was also given to reduce the size of the debt.
With the club facing possible relegation and no reduction in the size of the debt, Barclays demanded additional security to protect its position. To satisfy Barclays, all the club’s centralised television income for this season and beyond has also been provided as security. That deal, struck in August, means that all of Blackburn’s assets have been put up as collateral against existing loans. Since then Telegraph Sport understands that Venky’s have taken no steps to reduce the debt.
Barclays’ concern is understandable given the club’s perilous league position and the increasingly risk-averse position of lenders in the current financial climate. Newcastle faced similar pressure from the bank to reduce the size of their overdraft following relegation to the Championship two years ago. Relegation would massively impact on Blackburn’s ability to reduce the debt further, which explains the bank’s demand for the security of future television income and parachute payments.
Venky’s initially offered the club’s stadium and property assets, as well their shares in Blackburn, as security. The security is detailed in documents filed by the club’s holding company, Venky’s London Ltd, on the day of the takeover, Nov 19 2010. The additional security was provided by the club in an agreement registered on Aug 25. This season’s broadcast revenue of at least £30 million, and a minimum of £48 million in parachute payments over four years should they be relegated, has been offered as collateral. Sources have indicated that the club have not been forwarded any money in loans as a result of the latest arrangement with Barclays.
Barclays’ concerns will heighten worries over Venky’s’ stewardship of what was once a stable, if loss-making, club. They have certainly not delivered on the expectation of the club board and the Walker Trust, which agreed to sell this time last year. In last year’s accounts, completed before the deal was struck, Blackburn’s then chairman John Williams wrote: “If the sale is concluded there is an opportunity to take the club forward, to consolidate our position in the league and look for year-on-year improvement.” The reality has proved very different. The club have just a league single win this season and manager Steve Kean is under huge pressure from disgruntled supporters unconvinced at his ability to stee the club out of its current predicament. Venkys did invest £10 million in equity last January for transfers, but despite a welter of promises, the investment in star names never materialised.
Since then they have made a net profit on transfers and the club’s best player, Phil Jones, was sold to Manchester United for what already looks like a bargain £16.5 million. While Jones went six players came in, two of them on free transfers, with Scott Dann, Yakubu and Jordan Slew signed on deadline day for a total of £10.5 million. With pressure from the bank to reduce debts, it is unclear what, if any, funding Venky’s are willing to make available to Kean for signings in the forthcoming January transfer window.
They are also likely to come under pressure to sell their remaining valuable players including Christopher Samba, likely to be a target for Tottenham and Arsenal among others. Resisting offers for Samba will be a further test of the owners’ credibility with supporters.
A spokesman for Venky’s did not respond to a request for comment. A Blackburn Rovers spokesman said the club were unable to respond to questions about the nature of their financial arrangements with Barclays.
___
And ...
Blackburn owners Venky's hoped to use free R&B concerts to woo fans
• Venky's wanted Akon as headliners at Ewood Park
• Emails reveal extravagant failed pop plans
Daniel Taylor
guardian.co.uk, Thursday 1 December 2011 22.30 GMT
It was an unusual strategy even by the standards of Venky's, the poultry group that took over Blackburn Rovers promising "beautiful football" and has overseen a year of strange and frequently bewildering goings-on at Ewood Park.
The Venky's way is clearly an eccentric one given that they have just awarded their manager, Steve Kean, a pay rise despite being bottom of the league, with seven points from 13 games and weekly protests from supporters calling for him to be sacked. However, what has not been revealed until now is the lengths to which the one-time small family business were willing to go at the start of the season to ingratiate themselves with Rovers fans.
The Guardian has been shown emails revealing plans to stage a free concert at Ewood Park in which Blackburn wanted Akon, with over nine million albums sold worldwide, to be the headline act at a ground where the nearest thing to R&B is usually provided by the man with a drum in the Ronnie Clayton End.
Kelly Rowland and David Guetta were also approached to see if they could be persuaded to head to Lancashire for a one-off gig, pencilled in for 11 August, two days before the start of the season.
What these category-A stars thought about performing in front of 20,000 Blackburn supporters is not entirely clear but, perhaps unsurprisingly, the idea never got off the ground, with none of the acts agreeing to perform. Instead the most audible noises inside Ewood that week were the jeers that followed the 2-1 defeat to Wolverhampton Wanderers.
Music insiders estimate the concert would have cost a seven-figure sum to stage but that there was almost no chance of attracting such an ambitious lineup, in much the same way that Venky's has talked about trying to recruit Ronaldinho and David Beckham to help a losing team. Fans fearing a long relegation battle will hope the money can be used instead to bring in some new players in the January transfer window.
http://www.guardian.co.uk/football/2011/dec/01/venkys-blackburn-free-concerts
____
Going to be rough times for Blackburn supporters.
Blackburn Rovers’ owners are under pressure from Barclays Bank to reduce the club’s debts, Telegraph Sport can reveal. The club owe at least £21 million to Barclays, and it is understood that Venky’s - which is owned by the Rao family - agreed to reduce the debt when they took control at Ewood Park. A year later that has not happened though, prompting the bank to demand more security against its loans as the club face possible relegation.
The bank’s position will increase concern among supporters about the financial situation at the club, and raises fresh questions about the owners’ strategy and their readiness to meet the financial demands. Venky’s paid £23 million to buy the club from the Jack Walker family trust last year, assuming responsibility for £21 million of debt to Barclays that the club were already carrying. The debt was secured against Ewood Park and all the club’s other property assets, as well as Venky’s’ newly-purchased shares in Blackburn, and it is understood that an undertaking was also given to reduce the size of the debt.
With the club facing possible relegation and no reduction in the size of the debt, Barclays demanded additional security to protect its position. To satisfy Barclays, all the club’s centralised television income for this season and beyond has also been provided as security. That deal, struck in August, means that all of Blackburn’s assets have been put up as collateral against existing loans. Since then Telegraph Sport understands that Venky’s have taken no steps to reduce the debt.
Barclays’ concern is understandable given the club’s perilous league position and the increasingly risk-averse position of lenders in the current financial climate. Newcastle faced similar pressure from the bank to reduce the size of their overdraft following relegation to the Championship two years ago. Relegation would massively impact on Blackburn’s ability to reduce the debt further, which explains the bank’s demand for the security of future television income and parachute payments.
Venky’s initially offered the club’s stadium and property assets, as well their shares in Blackburn, as security. The security is detailed in documents filed by the club’s holding company, Venky’s London Ltd, on the day of the takeover, Nov 19 2010. The additional security was provided by the club in an agreement registered on Aug 25. This season’s broadcast revenue of at least £30 million, and a minimum of £48 million in parachute payments over four years should they be relegated, has been offered as collateral. Sources have indicated that the club have not been forwarded any money in loans as a result of the latest arrangement with Barclays.
Barclays’ concerns will heighten worries over Venky’s’ stewardship of what was once a stable, if loss-making, club. They have certainly not delivered on the expectation of the club board and the Walker Trust, which agreed to sell this time last year. In last year’s accounts, completed before the deal was struck, Blackburn’s then chairman John Williams wrote: “If the sale is concluded there is an opportunity to take the club forward, to consolidate our position in the league and look for year-on-year improvement.” The reality has proved very different. The club have just a league single win this season and manager Steve Kean is under huge pressure from disgruntled supporters unconvinced at his ability to stee the club out of its current predicament. Venkys did invest £10 million in equity last January for transfers, but despite a welter of promises, the investment in star names never materialised.
Since then they have made a net profit on transfers and the club’s best player, Phil Jones, was sold to Manchester United for what already looks like a bargain £16.5 million. While Jones went six players came in, two of them on free transfers, with Scott Dann, Yakubu and Jordan Slew signed on deadline day for a total of £10.5 million. With pressure from the bank to reduce debts, it is unclear what, if any, funding Venky’s are willing to make available to Kean for signings in the forthcoming January transfer window.
They are also likely to come under pressure to sell their remaining valuable players including Christopher Samba, likely to be a target for Tottenham and Arsenal among others. Resisting offers for Samba will be a further test of the owners’ credibility with supporters.
A spokesman for Venky’s did not respond to a request for comment. A Blackburn Rovers spokesman said the club were unable to respond to questions about the nature of their financial arrangements with Barclays.
___
And ...
Blackburn owners Venky's hoped to use free R&B concerts to woo fans
• Venky's wanted Akon as headliners at Ewood Park
• Emails reveal extravagant failed pop plans
Daniel Taylor
guardian.co.uk, Thursday 1 December 2011 22.30 GMT
It was an unusual strategy even by the standards of Venky's, the poultry group that took over Blackburn Rovers promising "beautiful football" and has overseen a year of strange and frequently bewildering goings-on at Ewood Park.
The Venky's way is clearly an eccentric one given that they have just awarded their manager, Steve Kean, a pay rise despite being bottom of the league, with seven points from 13 games and weekly protests from supporters calling for him to be sacked. However, what has not been revealed until now is the lengths to which the one-time small family business were willing to go at the start of the season to ingratiate themselves with Rovers fans.
The Guardian has been shown emails revealing plans to stage a free concert at Ewood Park in which Blackburn wanted Akon, with over nine million albums sold worldwide, to be the headline act at a ground where the nearest thing to R&B is usually provided by the man with a drum in the Ronnie Clayton End.
Kelly Rowland and David Guetta were also approached to see if they could be persuaded to head to Lancashire for a one-off gig, pencilled in for 11 August, two days before the start of the season.
What these category-A stars thought about performing in front of 20,000 Blackburn supporters is not entirely clear but, perhaps unsurprisingly, the idea never got off the ground, with none of the acts agreeing to perform. Instead the most audible noises inside Ewood that week were the jeers that followed the 2-1 defeat to Wolverhampton Wanderers.
Music insiders estimate the concert would have cost a seven-figure sum to stage but that there was almost no chance of attracting such an ambitious lineup, in much the same way that Venky's has talked about trying to recruit Ronaldinho and David Beckham to help a losing team. Fans fearing a long relegation battle will hope the money can be used instead to bring in some new players in the January transfer window.
http://www.guardian.co.uk/football/2011/dec/01/venkys-blackburn-free-concerts
____
Going to be rough times for Blackburn supporters.
