Blackburn Rovers have reported a £27m pre-tax loss last year. Accounts for the year to March show the business also had net liabilities of £26.3m at the end of the year. Strictly speaking, the accounts relate to parent company Venky’s London Limited, but that is responsible for all the financial activity of the club.
The newly-filed figures reveal revenues at the Championship club were £35.6m, down from £80.4m in an 18-month accounting period to March 2012 when it reported a profit of £35,000.
Blackburn Rovers have reported a £27m pre-tax loss last year. Accounts for the year to March show the business also had net liabilities of £26.3m at the end of the year. Strictly speaking, the accounts relate to parent company Venky’s London Limited, but that is responsible for all the financial activity of the club.
The newly-filed figures reveal revenues at the Championship club were £35.6m, down from £80.4m in an 18-month accounting period to March 2012 when it reported a profit of £35,000.
During the period player wages accounted for 110% of revenue, compared with 86% last time. There was a profit of £250,000 from player trading, down from £20.4m in the prior period.
Gate receipts were down to £5.1m from £7.8m while sponsorship fell to £697,140 from £2m. Broadcasting rights fell to £24.9m from £60.8m reflecting the club’s relegation from the Premiership.
Despite revenue decline the accounts have been prepared on a going concern basis after receiving assurances from Venkateshwara Hatcheries that it will provide additional financing when required. During the year it put in an extra £14.3m.
Championship clubs generally have particularly challenging finances as they seek to secure promotion to the Barclays Premier League or to avoid relegation to League 1. However, losses of around £7m-£8m a year would be more typical.