As Blackburn Rovers start to step up their preparations for the new season, chairman John Williams takes time out to discuss the financial state of the club. Here, he talks exclusively about wages, budgets, and the future.

Would you rate the 2009/10 season as a success? Are the club ahead of expectations compared to where you budgeted?

Most definitely, on and off the field.

Despite our financial constraints a top 10 finish; 50 points; a Carling Cup semi-final, beating Chelsea along the way; superb home form; beating Arsenal; draws with Man Utd, Liverpool and Chelsea; doubles over Villa and our local rivals Bolton and Burnley; three clean sheets; and only three home defeats.

Not bad!

Sam achieved an excellent return of 1.3pts per game in his first half season, we knew if we could sustain that level a mid-table finish was achievable.

Our wage costs also suggested mid-table.

We actually budgeted to finish 13th but Sam put up a compelling case for Michel Salgado.

This meant we had to re-forecast to 11th.

A tall order but we did it with a bit to spare and only goal difference denying us ninth.

There was a story in a national newspaper earlier in the season stating Sam Allardyce was close to the sack? It attracted huge interest but can you confirm this was nothing but gossip mongering?

It was exactly that – gossip mongering. I recall it starting after the defeat at Man City.

Sam was rightly upset and kept the players in the dressing room afterwards – the next thing you know we are in ‘crisis’.

I did like Sam’s reply to the question, something along the lines “if it were true I think I would know about it”.

I think that speaks volumes for his perception of the open relationship we have.

You must feel your decision to bring Sam Allardyce has been justified? He has turned things round remarkably in a short space of time?

Sam has done very well. He has certainly turned us around after the very disappointing half season with Paul Ince.

Sam’s initial focus was on keeping the club up. That initial target was achieved, he then needed to get us back to the level we have previously enjoyed. (seven top 10 finishes in nine years, six semi-finals, etc).

This season’s achievement needs to be viewed in the context of the Premier League getting stronger and stronger. Sam has delivered.

Rovers sold two key players last summer for considerable money, having sold a few the summer before as well. Has the money helped put Rovers back on an even keel or can we expect more sales this summer?

We have been through this before but let’s recap.

In 2008/9 we needed to sell Roque Santa Cruz to make up for a poor league finish against budget 9 v 15, increased wages and disappointing TV facility income.

The balance went essentially on funding Nikola Kalinic and Gael Givet and the change of management teams.

As we prepared budgets for this (2009/10) season we really needed to cut £5m for the wage bill.

After a series of comings and goings (10 in and 10 out) the new wage target was looking very difficult and we chose to raise funds by selling Stephen Warnock, instead of lowering wages.

I’ve said before selling players to maintain operating costs isn’t everyone’s cup of tea, to be truthful it’s not my preferred model, but it’s a model that works for us.

What’s changed is that since new enhanced broadcast revenues for the three-year cycle beginning 10/11 we can just about maintain wage levels without the need for capital receipts.

So in simple terms we become a trading club.

Some of our fans would prefer we could be a buying club but that’s not possible.

We do though have circa £50m of playing assets to trade with.

I still think wages need to come down but to preserve Jack’s legacy (and that’s my number one driving force) we need to make sure we stay in the Premier League.

A mid-ranking wage bill is important, particularly if net transfer funds are not available.

You must be the delighted with the response to the club’s ticketing initiatives last season? Do you anticipate a similar response next season? How long is it sustainable to keep offering tickets at the sort of prices you are?

I certainly hope so. But every year there is churn, and the percentage has been constant over the years.

If that continues then you have more to lose from the increased (19,000) base.

As supporters drop out one end of the tube we work hard to find new ones to replace them.

Having said all that, retention remains our key objective.

Excellent value for money, excellent home form, an improving atmosphere at the ground all helps.

The battle to take back Ewood has been almost won, we need to step up a gear and move from “Taking Back Ewood” to “Fortress Ewood”.

Our fans hold the key to how long we can sustain prices.

We are taking a circa £10m plus hit against many mid-ranking teams in the gate income and associated revenue lines.

But our model can accommodate this provided we keep selling tickets, and growing the attendance.

Rovers are constantly being linked with big-money strikers but is this slightly unrealistic given the club’s financial position?

Yes I’m afraid it’s totally unrealistic.

The wage to turnover ration has been an area for concern in recent times, what is the situation now?

As referred to earlier it’s too high, but for me it’s also a question of controlling all the other costs which we do well.

If we run at the often quoted more sensible 65-70% level we would have to make savings of approximately £7.5m.

That would mean moving down from mid-table in the wages league (12th at the moment) to a level where alarm bells would be sounding.

It’s a conundrum; it won’t go away we have to continue to manage our way through it.

How are the club off financially now? Is there any sign of the Walker Trust putting any more money into the club or is it a case of continuing to stand on your own two feet?

We run a tight ship but will still have to make adjustments as we prepare for the impact of UEFA’s new financial fair play rules – notably the ‘break even’ requirement.

Our owners have made it clear that they cannot see their way to provide funds as equity or donations.

This has been the position for some time now so self sufficiency is the order of the day. It’s a challenge!

Has there been any progress on the potential sale of the club? Are there any parties out there with any serious interest?

The situation is fluid, there is real interest and discussions continue.

What is the future for the club? Can you continue to compete with the millions of pounds being spent by your rivals?

I can only look medium term. For the next three years (TV cycle) I believe we can compete.

Not like for like with those who are spending millions but competing, where it matters, on the pitch.

These are good days, good years for Blackburn Rovers. History, I’m sure, will show that to be the case.

I believe we can continue to over perform against our relatively constrained funding.

Keep the passport handy – you never know!

TOMORROW: Andy Cryer takes your questions in a live 30-minute Rovers web-chat at 12.30pm.