Rovers need ‘significant funding’

In a statement accompanying the release of the accounts for Blackburn Rovers, owners Venky’s admit that the club would require ‘significant funding’ in the short term.   Detailed cash flow statements have been prepared for the 18 months to June 2013.  

In a statement accompanying the release of the accounts for Blackburn Rovers, owners Venky’s admit that the club would require ‘significant funding’ in the short term.   Detailed cash flow statements have been prepared for the 18 months to June 2013.  


The statement continues, ‘The amount of additional funding will be dependent on the net proceeds of any player trading [implying sales in January] and availability of bank facilities.’   Negotiations with Barclays Bank about the renewal of the overdraft ‘and based on these discussions the directors are optimistic these facilities will be renewed on acceptable terms and conditions.’


‘In view of this, the directors have received confirmation from the ultimate parent company [Venkateshwara Hatcheries Pty Ltd] that it has sufficient funds and is willing to provide such additional financing as is required.’


The statement also confirmed that a number of players have clauses that would lead to significant reductions in their salaries if Rovers were relegated which is still a strong possibility despite the 1-1 draw at Liverpool.


The recorded loss of £18.6m to 30 June compares with only £1.9m in the previous year.  Net debt rose from £21m to £26.3m.   Turnover dropped narrowly from £57.8m to £57.6m, not a surprise in the economic climate.  Wages and salaries went up from £47.4m to £49.9m, leading the wages to turnover revenue to increase from 82 per cent to 86.6 per cent, although that was below the figure if 90.6 per cent two years ago. 


It should be noted that net transfer fees of £8.7 million were due after the end of the financial year, including the £16.5 million sale of Phil Jones to Manchester United, and were not included in the latest balance sheet.


The situation at Rovers has led to a feature length article in the New York Times.