Football
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05 Nov 13
12:00
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Date Joined:
16 Nov 10
BLACKBURN Rovers are £54.5m in debt after posting a pre-tax loss of £36.5m for last season.
Managing director Derek Shaw insisted the club was working hard to put its ‘house in order’ after a disastrous first year in the Championship.
Owners Venky’s state in Rovers’ latest annual accounts that they are willing to provide additional funds should the club’s overdraft with the State Bank of India not be renewed – and should the club fail to win promotion.
But the accounts, for the year ending June 30, 2013 and which cover the 2012-13 season, reveal:
Rovers posted a pre-tax loss of £36.5m after losing £11.7m on player trading – more than the £30m predicted by supporters’ group The Rovers Trust last month. The previous year – the club’s last in the Premier League – Rovers posted a pre-tax profit of £4.3m after making £14.1m profit on player trading;
Net debt has shot up from £24.5m to £54.5m – £36.1m of which is owed to Venky’s;
Turnover was down £27.3m from £54.2m to £26.9m after a drop of £23.2m in TV money;
Wages were down from £50m to £36m. However the wage-to-turnover ratio rose from 92.2 per cent to 136.1 per cent;
The club lost £1.1m in ticket sales and £3m in commercial income as average attendance fell 33.5 per cent from 22,551 to 14,997.
How can you let your wages to turnover ratio get to 136%?!!
Managing director Derek Shaw insisted the club was working hard to put its ‘house in order’ after a disastrous first year in the Championship.
Owners Venky’s state in Rovers’ latest annual accounts that they are willing to provide additional funds should the club’s overdraft with the State Bank of India not be renewed – and should the club fail to win promotion.
But the accounts, for the year ending June 30, 2013 and which cover the 2012-13 season, reveal:
Rovers posted a pre-tax loss of £36.5m after losing £11.7m on player trading – more than the £30m predicted by supporters’ group The Rovers Trust last month. The previous year – the club’s last in the Premier League – Rovers posted a pre-tax profit of £4.3m after making £14.1m profit on player trading;
Net debt has shot up from £24.5m to £54.5m – £36.1m of which is owed to Venky’s;
Turnover was down £27.3m from £54.2m to £26.9m after a drop of £23.2m in TV money;
Wages were down from £50m to £36m. However the wage-to-turnover ratio rose from 92.2 per cent to 136.1 per cent;
The club lost £1.1m in ticket sales and £3m in commercial income as average attendance fell 33.5 per cent from 22,551 to 14,997.
How can you let your wages to turnover ratio get to 136%?!!
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Relegation without relegation clauses.
All Premier League contracts (except maybe the top 4-5) should include a relegation reduction clause of about 40%. |
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Agreed. For me the parachute payment thing has never worked, as there are still so many clubs that go into free fall, whilst carrying players on huge wages when they get relegated from the Prem.
In my opinion they should introduce a rule for all 92 clubs where they have to give players a four tiered contract. If we're in the Prem you get paid this, but if we're in the Champ you get no more than this, L1 no more than this etc. That way a club should be able to continue to function after relegation without racking up huge debts trying to pay wages that don't reflect their position. |
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This was always going to happen I don't even go ewood park anymore :(
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Hi Smithy,
I remember talking about all this with you on a relegation thread nearly two years ago, and you were in despair at the situation then. It seems to have been all downhill since - selling chickens in India must be a very simple business if the Venkys are making millions out of it! |
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Venky's are clowns. They took over a fairly well established premier league club and are now in the championship losing 100k a day.
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What the cluck is going on?
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Relegation reduction clauses wouldn't save Blackburn. They bought Jordan Rhodes for £8 million and, what, £25k a week AFTER being relegated.
They deserve zero sympathy. I'm not saying relegation reduction clauses aren't a good idea, but the problem is someone above their station like West Ham will decide that they won't put them in to attract some over-rated player, and then nobody will be able to do it. |
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Oh and Blackburn also shelled out on Danny Murphy, Leon Best and Nuno Gomes all on Premier League wages post relegation as far as I know.
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And the parachute payments end next season I think? Ruh-Roh!
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sorry for not replying theanorak I was at work! basically the clubs hopes are for us to go this season which we won't so we are doomed. I reckon perhaps two more seasons we'll be in league one with loan players as our wage bill completely crippled us. also I can see venkys doing a runner within the next 12 months leaving us absolutely goosed
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be selling jordan rhodes to qpr in january, that will help a bit. though not enough.
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If you had those clauses then it would be harder for bottom half EPL teams to get players without paying them over the odds for taking the risk
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Pure BOLLY-EWOOD
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They are also in the she height cos they dont play city, united, liverpool, everton who would sell the end out..
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very true malady we have Barnsley bringing 150 fans instead
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all very sad that this should happen to one of our oldest english clubs
love of money and all that venkys are a total disgrace, fulham and cardiff wont be far behind rovers i reckon |
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Blackburn wil be the new Portsmouth....
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shoulb be a blanket ban of foreign ownership in english clubs..
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never going to happen barney , free trade and all that, i blame the previous owners who sell out for greed to thses idiots
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Shame all clubs aren't run like Blackpool. They make a profit ever year and are still very successful for a club of their size. Amazing
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Yes, great shame that more football clubs aren't run by people like the cuddly Owen Oyston.
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They will change their name to Blackburn Rangers....and they will move to Glasgow whilst still playing in the english football league.
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SEVCO (SOUTH) - The new name for Blackburn Rovers
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Blackburn have been in a dicey position for years. They weren't particularly well run in the premier league - they had a a very high wage to turnover in the premiership but kept going as they sold players for big money. Santa Cruz, Bellamy, Jones etc.
Eventually they ran out of luck coupled with some appalling mismanagement. The money they through at players last year was ridiculous - Danny Murphy on a two year deal at 40k a week was a perfect example they had to pay him up twelve months early. Realistically last seasons efforts were just the last throw of the dice. Unless they go up this year then oblivion awaits. |
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^^^ spot on mighty whites
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NOW WE KNOW-What the cluck is going on?
backs burnley for the title at 250/1 and now makes fun of Blackburn NOW WE KNOW is a dingle 1.01 nap |