When news happens, text LT and your photos and videos to 80360. Or contact us by email or phone.
Wall of silence greets £27m loss
BLACKBURN Rovers’ owners and club officials have chosen to stay silent over the £27m loss posted by Venky’s London Ltd (VLL).
VLL, the holding company which bought a 99.9 per cent stake in Rovers in November 2010, revealed a £27,120,769 loss in the last financial year.
Venky’s were unavailable for comment when contacted by the Lancashire Telegraph while Rovers’ managing director Derek Shaw remained tight-lipped on the news.
Shaw said: “It is difficult for me to comment because I’m not an officer of Venky’s London Ltd, I work for Blackburn Rovers, a subsidiary of them.”
The accounts are the second set to be filed by VLL since buying Rovers and cover the period between April 1, 2012 and March 31, 2013.
The company’s first set of accounts covered a longer period, between October 13, 2010 and March 31, 2012, and showed a small profit of £35,212.
The latest accounts show that VLL turnover is down from £80.45m to £35.68m.
That figure is explained by a loss of more than £35m in broadcasting rights since Rovers were relegated to the Championship. Gate receipts have also fallen – by more than £2m – while commercial revenue is down by a similar amount.
The accounts show that VLL slashed staff costs by nearly £30m while also cutting operating expenses by more than £7m.
During the 12-month period Venky’s put in £24.38m of their own money in the form of share capital – a sum on which they will not charge interest nor demand back.
Venky’s have put a plan in place covering the next 18-months and admit more money is likely to be needed to sustain Rovers.
But the report said any additional funding would be made available by the parent company Venky’s.
The report said: “The group will require significant funding in addition to the current facilities available to the group.
“The amount of additional funding required will be dependent on the net proceeds of any player trading and availability of bank facilities.
“The directors have received confirmation from the ultimate parent company (Venkateshwara Hatcheries Pvt. Ltd) that it has sufficient funds and is willing to provide such additional financing as may be required to fund the group to the extent necessary for the group to continue to trade and pay its liabilities as and when they become due, for the next 12 months and thereafter for the foreseeable future.”
The accounts also show that £2.79m was spent by VLL on terminating contracts early – including former manager Henning Berg.
Blackburn Rovers’ club accounts, which will be released later this year, will cover the period up to June 30, 2013 including the 2012-13 season.
Comments are closed on this article.