THE owners of Blackburn Rovers have recorded a post-tax loss of more than £27 million for the last financial year – but Venky’s insist they will continue to back the club.
The directors’ report and financial statements of Venky’s London Limited revealed the loss last night.
Rovers, which is a 99.99 per cent subsidiary of Venky’s London Limited, accounts for the majority of the group’s trading and the report says the owners will require “significant funding” as part of their cash flow forecast, especially with Financial Fair Play due to come into effect.
Venky’s London is currently operating with backing from the State Bank of India with that arrangement due for renewal on September 30, although directors Anuradha Desai, Venkatesh Rao, Balaji Rao and Jitendra Desai do not foresee any withdrawal of that facility.
The directors also state that parent company Venkateshwara Hatcheries Pvt Ltd has funds and will continue to finance Rovers where necessary in order for Venky’s London to continue to trade.
Relegation meant the loss of Premier League funds but player contracts did allow for reduction in salaries in the event of the club losing top flight status.
Venky’s are also working on increasing revenue streams to help the club make a push for a return to the Premier League.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel