THE full extent of Jack Walker's legacy to his beloved Blackburn Rovers was revealed for the first time today - his trust fund has given the club £9million since his death.

The £3-million-a-year donation was announced to shareholders today at Rovers' annual general meeting when they were told the trust fund had also given the club a £14m interest-free loan.

The importance of Jack Walker's support since his death in August 2000 was underlined as Rovers announced a £12m loss for the last season and revealed total debts of £26m.

Speaking before the AGM, chief executive John Williams said the £3m-a-year donation was vital in helping Rovers compete against big city clubs and represented between four and five thousand additional 'supporters' on the gate.

"We are very grateful it is there," he said. "In an ideal world, I would like us to have gates of 30,000 every home game and then we could spend the money on a new player. But with the gates we get, the money is needed to help run the squad we have got."

Shareholders at the club's annual general meeting were told that Rovers had made a small operating profit of £502,000 for the 12 months to the end of June 2003.

But with the club having to reduce the value of the players on its books by £11.6m, it made a pre-tax loss of £12m - more than £1m higher than the previous season.

In his report to shareholders, Mr Williams said the club's wage bill had risen from £29.7m to £35.5m and now accounted for 78 per cent of the £45.4m turnover.

"The major underlying problem for the club remains the relatively low gate receipts compared to our competitor clubs," he said.

"Despite a small year on year increase, our attendances were the third lowest in the league. By contrast, our wage bill is about the eighth highest. The club has shown unswerving support for the manager by continuing to pay wages at that level. It cannot go on in the long-term interests of the club.

"We have a deliverable strategy for the business going forward, but must reduce the wage/turnover ratio. Opportunities will be forthcoming as player contracts become shorter."

Rovers' accounts for 2003 show the club's debts totalled £26.4m -- £14 m of which is owed to the Jack Walker trust fund. At the year end, its bank loan and overdraft had soared from £2.4m to £12.1m and Mr Williams said the club was now under pressure to reduce the figure.

With Blackburn Rovers perilously close to the relegation zone, Mr Williams warned that the drop to the Nationwide League would cost the club more than £20m. "If the club gets relegated, I believe it would require a long and painful rebuilding before we could return to the top flight," he said.

"I think we would find it difficult to get back immediately."

The club's accounts underline how critical it is for Rovers to stay in the Premier League. The club's media income - largely from Sky BSB - rose from £18.8m to a record £24.1m. Even taking into account the £5m 'parachute payment' made by Sky to relegated teams for two seasons, relegation would clearly plunge the club into financial crisis.

Turnover for 2003 increased by £6.9m to £45.4m, boosted by gate receipts, up by 18 per cent to £6.2m. Income from cup competitions grew by 19 per cent, thanks to the good run in the Worthington Cup and the tie against Celtic in the UEFA Cup.