Value of Rovers

Discuss all things Rovers related except...
doz_magic_man
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Re: Value of Rovers

Post by doz_magic_man » Thu May 11, 2017 2:20 pm

Nobody will pay Venky's the debt owed to them as a purchase price for the club, and Venky's would be foolish to expect anybody to. However, Venky's could demand cash equal to the value of assets left (the stadium etc) to save some face, whilst writing off the debt. Assuming they still make healthy profits in other parts of their group, then they can potentially set the losses and bad debt off against profits elsewhere within the Venky's group, thus saving tax. They are probably already doing this with the losses. This probably makes more sense than continuing to endlessly pump cash into a loss-making, brand-diminishing entity and may also be more attractive than liquidation (given that there's not much left to liquidate and that they could probably achieve more money by selling the club to a fan-backed consortium as a going concern).

Administration wouldn't be helpful given that Venky's are the main creditor.

I would hope that if a consortium offered Venky's £20m or so, they would seriously consider it. The pool of potential bidders for the club is now so small that they will never receive anywhere near what they once would have hoped for.

What we need is for Venky's to continue to act as our cash cow in the immediate future and then kindly agree to hand us over to more competent owners in due course, whilst swallowing the millions they have pissed away on the club. However, FFP has fucked up any hope of us soaring up the leagues, even with new owners, unless we find some future God-like coach who can work wonders with freebies and loans. Therefore, we are not in a good place for the next 5 years at least, no matter what happens. :cry: :cry: :cry:

But hey, at least we're now back at the level we "belong" and we don't have to worry about punching above our weight anymore... :roll:

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mrblackbat
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Re: Value of Rovers

Post by mrblackbat » Thu May 11, 2017 4:37 pm

Mark Hughes did fine at finding us cheapies and freebies back in the days when we had no money under the Walker Trust. Ryan Nelson anyone? Chris Samba? And Souness did well getting us Brad Friedel on a freebie.

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Re: Value of Rovers

Post by Thorisgodpoo » Thu May 11, 2017 4:56 pm

I always believe that if you have a good executive with a good manager, you can make something great. We just desperately need a good executive while we have Mowbray here. Managers shouldn't be tasked with finding players, they should be getting help from other people and given options for players.

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mrblackbat
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Re: Value of Rovers

Post by mrblackbat » Thu May 11, 2017 5:31 pm

I disagree. Managers know what's needed in a player best for their desired system; they should have scouts advising them of players they believe will fit their needs, but they should be the ones deciding who a team signs ultimately.

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Re: Value of Rovers

Post by yankfan » Fri May 12, 2017 5:57 am

Thorisgodpoo wrote:
Wed May 10, 2017 8:12 pm
It will be interesting what the taxes look like for the fiscal year. June 2016 was reported to having only £1.5m in the financial year compared to £17.3m in 2015.
And that was the last year of parachute payments. Now we're out this money to offset losses. http://www.blackburn.vitalfootball.co.u ... p?a=448095

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Re: Value of Rovers

Post by VincentV » Tue May 16, 2017 9:36 am

Ethiaa wrote:
Wed May 10, 2017 7:52 am
The average football team loses money. The average football team is really worth nothing.
Strange that none of these football teams can turn a profit. Clearly the staff i.e the players and managers are paid too much.

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Ethiaa
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Re: Value of Rovers

Post by Ethiaa » Tue May 16, 2017 9:44 am

VincentV wrote:
Tue May 16, 2017 9:36 am
Ethiaa wrote:
Wed May 10, 2017 7:52 am
The average football team loses money. The average football team is really worth nothing.
Strange that none of these football teams can turn a profit. Clearly the staff i.e the players and managers are paid too much.
In some cases that's clearly the case. You could argue there are also too many teams for the supporter base in this country. Also that the division of income between leagues is vastly unfair and needs more regulation in order to ease the issues of there being so many teams. And of course why should vastly rich people be stopped from investing their own money in a club if they want to - the FFP rules are nonsense and feed into the rich getting richer and the rest falling ever further behind.

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mrblackbat
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Re: Value of Rovers

Post by mrblackbat » Tue May 16, 2017 9:59 am

The last point feeds into the first, because those clubs at the top are so wealthy it drives up the wages of footballers across the system.

The clear solution is: stop watching the Premier League.

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Ethiaa
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Re: Value of Rovers

Post by Ethiaa » Tue May 16, 2017 10:05 am

And we are in the vanguard of that movement of course! :hyper:

Downwards for the good of football comrades!

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Re: Value of Rovers

Post by WacoRover » Wed May 17, 2017 1:51 am

Interesting, the top 7 PL clubs all have a gd of at least +20. The other 13 clubs all have negative gd's. I haven't checked on money, but I bet the top 7 spend a great deal more than the rest.

ManC spent £176 mil last year, & are said to be spending £200 mil this year. Obscene.

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Joe
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Re: Value of Rovers

Post by Joe » Thu May 18, 2017 12:37 pm

Anything in this story about two big accounting firms being at Ewood this week?

And any truth in something I read somewhere...... that FFP operates differently in league one. So venkeys could potentially put money toward transfers without breaking rules?
I'm asking this question completely naively when it comes to the legal/finance side of things.

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theadore
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Re: Value of Rovers

Post by theadore » Thu May 18, 2017 1:39 pm

Would have assumed that as they're all under the EFL it would be the same - but just as naive as you are.

I'm sure there are plenty of benign and legitimate reasons why accountants would want to come to ewood park... but I'm sure BRFCS can supply some hysteria if we need it. As a guess - if there has been tax raids on their indian businesses it seems a sensible time to audit the entire empire...

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Re: Value of Rovers

Post by yankfan » Fri May 19, 2017 11:14 pm

Not sure how accurate this is but there seems to be different rules in league 1. Maybe we should be in on Messi, then. http://www.financialfairplay.co.uk/scmp.php

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mrblackbat
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Re: Value of Rovers

Post by mrblackbat » Sat May 20, 2017 7:39 am

Weren't we spending something like 97% of turnover on wages when we were in the PL?

I think Messi's wage alone would be higher than our current turnover..... let alone 60%.

Though the description of how turnover is calculated might stop any equity injections from Venky's being classed as a bad thing, so lobg as they didn't loan it the club:

"However the Football League use a is broader definition of Turnover. Crucially, the FL Turnover figure includes donations from the owners to the club and injections of equity. Loans from club owners are understandably not included in the Turnover figure as these would result in growing club debts."

And of course, should you get promoted the Championship no doubt get all antsy in their pantsy abput it and slap FFP back in your face....

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Re: Value of Rovers

Post by yankfan » Sat May 20, 2017 4:38 pm

mrblackbat wrote:
Sat May 20, 2017 7:39 am
Weren't we spending something like 97% of turnover on wages when we were in the PL?

I think Messi's wage alone would be higher than our current turnover..... let alone 60%.

Though the description of how turnover is calculated might stop any equity injections from Venky's being classed as a bad thing, so lobg as they didn't loan it the club:

"However the Football League use a is broader definition of Turnover. Crucially, the FL Turnover figure includes donations from the owners to the club and injections of equity. Loans from club owners are understandably not included in the Turnover figure as these would result in growing club debts."

And of course, should you get promoted the Championship no doubt get all antsy in their pantsy abput it and slap FFP back in your face....
Couldn't you in theory gift enough to the club to bring in class talent, get promoted and go into embargo, but not care since you were able to make a splash in the transfer market the year prior...tge hard part would be to convince quality players that would perform at the higher level to join.

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