Blackburn Rovers upbeat despite £6.5m loss (From Lancashire Telegraph)

Blackburn Rovers upbeat despite £6.5m loss

10:40am Saturday 28th November 2009

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By Andy Cryer »

BLACKBURN Rovers have revealed a £6.5million operating loss in their 2008/09 accounts but remain in an upbeat mood about the club’s future.

In his chairman’s report, John Williams insisted Rovers could return to a ‘trading’ rather than ‘net selling’ club come 2010/11 – provided they finish this season around mid-table.

The operating loss, compared to the £6.6m profit made the previous season, has been put down to finishing six places below budget, coupled with lower TV appearances and an increased wage bill.

The accounts showed the sale of Roque Santa Cruz to Manchester City offset the loss in cash terms, with a £3.6million profit after taking into account player trading.

Other standout figures in the accounts included a 90.6 per cent wage bill to turnover ratio, with Williams stating they hoped to bring that down without ‘fundamentally weakening the squad” and a drop in turnover from £56.4m to £50.9m.

It was also revealed the club’s bank debt would increase at the end of this season from around £14m to around £20million, a level that is described as manageable but cannot be allowed to increase further.

Williams said in his report: “Provided we can finish around mid table, I do not envisage any forced sales the following year (season 09/10).

"In which case ‘trading’ as opposed to ‘net selling’ will be the order of the day.

“Relatively small adjustments to the wage bill will have to be made but can be achieved without materially weakening a competitive squad.

“Wages continue to be far to high in relation to turnover but we stretch ourselves to remain competitive.

"Using capital receipts in this way (to fund the wage bill) may not be the perfect model, but it works for us.

“We have started the 09/10 campaign proud of the longest stint in the top flight since 1936.

"So well done to Sam, his staff and the players.”

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