Blackburn Rovers made a profit of more than £8 million last season, writes PETER WHITE.

And that's despite finishing in their lowest position since becoming founder members of the Premier League in 1992.

It compares with a loss of £8,391,534 on the previous year.

The huge surplus of £8,060,279, and £16 million turnaround, is solely down to transfer income with the accounts - for the year ending June 30, 1997 - including the first half of the world record £15 million fee from Newcastle for Alan Shearer.

Rovers' only major incoming transfer during the period covered was Per Pedersen, signed from Odense for £2.5 million.

The dramatic change in circumstances surrounding transfer dealing is underlined by the figures.

In 1996-97, they showed a net income on transfer fees and associated costs of £8,532,798 against a net expenditure the previous year of £10,042,967 - a difference of more than £18 million.

On day-to-day trading, before transfer fees, the club would have shown a loss of £439,519, against a profit of £1,651,433. That is not a bad result, however, considering the club's turnover decreased significantly with no income from the European Champions' League.

Turnover totalled £14,302,220 - a reduction of £2,264,645 on 1995-96.

Income from sponsorship and other commercial activities held up reasonably well at £4,646,415 (£5,053,012 in 1995-96), despite a 10 per cent fall in attendances.

Match receipts brought in £5,304,007 (£6,152,172) and television, broadcasting and FA distributions yielded £4,351,798 (£5,361,681).

General overheads have been maintained at similar levels despite a huge increase in wage costs from £10,843,501 to £14,336,629.

In his annual report, chairman Robert Coar explains: "Whilst part of the wage increase was attributable to a contractual payment to a player following his transfer to another football club, players' wage costs continue to escalate over and above the rate of inflation as a result of increased competition amongst Premier League clubs to attract and retain the best players."

The average number of employees during the year was virtually unchanged at 204 (203). The club and its caterers also employ around 600 staff on matchdays, a similar number to the previous year.

Since the end of the year covered by the accounts - and not yet shown - Rovers have made more than £20 million from transfers with the second half of the Shearer fee plus the millions brought in by Roy Hodgson's dealings.

In the notes to the financial statements, an amount of £20,707,642 (£21,008,424) is shown as owing to Rovers' parent company of Rosedale (JW) Investments Ltd.

That company, like the club, is owned by Jack Walker and almost three-quarters of the amount £14,936,080 is interest free and has no fixed date for repayment.

A bank loan of £5 million was also due to be paid within one year of the end of last June. The balance sheet shows that total assets less current liabilities are £37,078,996 (£29,386,844), primarily the value of the stadium.

Net assets had increased from £5,633,621 to £13,693,900 at the end of the last financial year.

On the football side, the chairman's report adds: "Since Roy Hodgson's arrival, after the end of the year covered by this report, there have been many changes at the club - changes which we believe have left us stronger and better equipped to more forward both on and off the field.

"After the struggles of last season, Jack Walker made it clear that the club must learn the lessons of those experiences and, as he stressed to supporters, we must not allow ourselves to slip into such a situation again.

"His ambitions remain undiminished and will not be satisfied until Blackburn Rovers are again competing for the major honours in this country as well as European trophies."

And, on last season's struggle, Mr Coar adds: "It was to prove a traumatic experience in many respects but one which eventually could well have served as a salutory lesson and made the club even stronger for the challenges which lay ahead."

None of the directors received any payment for their services but their respective companies completed work for the club during the year.

Caton and Duckworth (Mr Coar) provided work valued at £328,124, Neales Waste Management (Richard Matthewman) £12,092, SG Aluminium (Iain Stanners) £2,549 and Miss Carter Publications (Keith Lee) £5,487.

The annual meeting of shareholders will be held in the Red Rose Suite at Ewood on Thursday, January 29 (8pm), when Mr Coar and Mr Matthewman retire by rotation and stand for re-election.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.