Blackburn Rovers manager Steve Kean insisted on Radio 5 this morning that there are no financial problems at the relegation threatened club. After the defeat at Sunderland yesterday, he appeared to know nothing about the financial situation. In any event, Barclays Bank clearly think otherwise. They sent a delegation of senior managers to Ewood Park last Tuesday, not to offer congratulations on Kean’s first year in management, which will be celebrated tomorrow, but demanding to see the colour of the club’s money.
Blackburn Rovers manager Steve Kean insisted on Radio 5 this morning that there are no financial problems at the relegation threatened club. After the defeat at Sunderland yesterday, he appeared to know nothing about the financial situation. In any event, Barclays Bank clearly think otherwise. They sent a delegation of senior managers to Ewood Park last Tuesday, not to offer congratulations on Kean’s first year in management, which will be celebrated tomorrow, but demanding to see the colour of the club’s money.
Barclays want the owners of the club, Indian poultry firm Venky’s, to pay £10m into Blackburn’s bank account by December 31 in line with arrangements they made with the bank when they bought the club in October last year. If they don’t, Barclays would be entitled to review the club’s overdraft and could ultimately deny the club access to the money they need to pay wages.
On the face of it it is difficult to see why Venky’s should not have the cash having already paid out £23m to buy the club. When a developing country becomes an emerging country, people start to eat more meat and the first meat they usually eat in any quantity is chicken. Of course, this is partly affected by national tastes so pork and duck are more popular in China. It is taboo for most Indians to eat beef, but the chicken is perfectly acceptable to the country’s growing middle class.
Blackburn Rovers appear to be annoyed with Barclays, insisting that cash flow is being maintained in terms of gate money and broadcasting revenue. However, things are not as simple as they seem. Ewood Park does not generate a lot of ‘walk up’ gate money compared with some clubs.
In a small or medium-sized business cash is king and many clubs have a problem towards Christmas. In the summer they receive season ticket money, a large tranche of broadcast money and income from the transfer market. Blackburn are due to receive £7.2m in television money next month, but that is short of the £10m Barclays want and, in any case, it won’t arrive in time.
It is likely that the club will be forced to make player sales in the January transfer window and will be unable to make hoped for acqusitions. This does not bode well for performance of the pitch. If I were a Blackburn fan, I wouldn’t be any more reassured by his financial pronouncements than what he has to say about team performances.