Football finance expert Kieran Maguire believes the impact new tax rules in India could have on Rovers have been “blown out of proportion”.

Earlier this month, reports in the national media claimed that the club’s budget had been affected by the new rules which affect overseas investment, but Maguire doesn’t think it is a major concern.

He feels the club’s reliance on continued funding from the ownership is more relevant.

“The Venky’s have been subsidising the club effectively since the day they walked through the door,” he told The Lancashire Telegraph.

“That is not a problem until it becomes a problem. It is like if I am paying my son’s rent - it only becomes a problem if I stop paying.

“It is a broader situation that the club is reliant on the continued level of funding from the Venky’s. They have been putting money in, they put some money in fairly recently as well.

“But what happens if their circumstances change or their feelings towards the club change? Then you have got an issue.

“If they were in a damaging cash position, they would have sold players in January.”

Rovers have previously stated they are in a position where they cannot spend transfer fees on new signings unless they sell players first.

Maguire says their current financial situation is in line with a larger trend across the entire division since the pandemic.

“They have not gambled on promotion for the last few seasons but they have had a reasonably competitive budget,” he continued.

“But the club is losing money and it is spending considerably more wages than it is generating in income. You cannot do that on a long-term basis unless you sell players for huge fees to cover those losses.

“I think in terms of the transfer spend, Blackburn – and the majority of the clubs in the Championship – are essentially in a position where they sell to buy.”

Maguire added: “It is not a unique situation for Blackburn and we have certainly seen – since Covid really – a substantial reduction in spending from Championship clubs.

“The net spend has tended to be negative because there are the likes of Joao Pedro going to Brighton for £30million. Leicester being relegated, they have sold players as well.

“It is a negative net spend position overall as far as the Championship is concerned and Blackburn are sort of caught in the middle of that.”

Rovers recently announced a new five-year sponsorship deal with their ownership that will sees the Venky’s logo featured on the playing kits.

“That is a positive,” Maguire stated. “There are other clubs not too far away who are sponsored by the owners,” he added.

“Accrington Stanley are sponsored by Wham, one of Andy Holt’s companies. You have got bet365 and Stoke, so it is something that occurs elsewhere.

“It can be beneficial in the sense that you can get a slight nudge upwards on what you would otherwise receive, so that could help out from a financial fair play position.

“It is a broad positive, it does suggest that the owners will continue to be in it for the long haul. But there are no guarantees in all aspects of football.”