Blackburn Rovers recorded a loss of £21million for the 2022/23 season with their latest set of accounts underlining the precarious financial situation they found themselves in last year.
Venky's problems in India have been well documented after the government launched an investigation into their global company, Venkateshwara Hatcheries Private Limited. That is the parent company of Venky's London Limited, who own Blackburn Rovers.
As a result, Rovers have been impacted by the knock-on effects despite not being directly implicated by the investigation. It has made transferring funds from India to the UK far more difficult with the High Court of Delhi used to send £11.5million in November to support the club.
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The latest accounts, covering the 2022/23 season and signed off in December 2023, highlight the struggles Rovers have faced. The accounts and audit report state there is a 'material uncertainty over the ability of the club to trade as a going concern' due to the problems in India.
Unsurprisingly, it spells out that Rovers would struggle to trade if Venky's were blocked from sending money to cover their outstanding losses, as would be the case for most Championship clubs.
However, Steve Waggott revealed last month that Venky's can continue to fund Rovers without restrictions from India 'on the basis the owners match every £ of funding with a personal financial guarantee'. This was despite their court hearing, initially scheduled in January, being delayed until August.
The headline figure for last season shows the club made a loss of £21m, down three per cent. Revenue grew by 26 per cent to £21m whilst wages also rose by six per cent to £26m.
Rovers' revenue streams, through broadcast and commercial, rose significantly, with their run to the FA Cup quarter-finals likely to have played an influential role. Overheads increased too which meant operations losses remained the same.
The club spent a net of £4.5m on transfers including the likes of Dom Hyam, Sam Szmodics and Callum Brittain. Only 300K was recouped in player sales.
Rovers' wages to revenue turnover sat at £140 for every £100 earned, though this has reduced significantly after the exits of Bradley Dack, Ben Brereton Diaz and Daniel Ayala.
The club's wage bill (£25.8) is the 10th highest of Championship clubs who have disclosed their accounts for 2022/23. Considering they finished seventh in the table, it suggests a financial overachievement.
Rovers' debt currently stands at £141.5m after Venky's converted £21.7m owed to them into shares. Since the owners acquired the club, Rovers have lost over £200m.
Rovers are fully compliant with Financial Fair Play regulations and their 2023/24 accounts will look far healthier after the sale of Adam Wharton for a club-record fee. The club are hopeful of reporting a profit for 2023/24.
The accounts also state that Rovers have recorded £3.4million in net transfer fees since June 30, 2023, which is the sales of Ashley Phillips and Thomas Kaminski.
Gregg Broughton told The Lancashire Telegraph last month that the club should have money to spend this summer. Rovers will be due money this summer for David Raya's permanent move from Brentford to Arsenal and will benefit from the increased TV income from the EFL's new deal with Sky Sports.
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