Player sales push Blackburn Rovers into profit for first time in years
Blackburn Rovers football club made a profit for the first time in at least five years following the sales of its two best players last season.
The accounts filed at Companies House reveal that day to day revenue at the promotion chasing Championship club increased a small amount at £21.4m, but wages outstripped that by £3m at £25.4m.
However the pay package for the highest paid director, likely to be chief executive Steve Waggott soared to £592K, mostly bolstered by a rise to £433,028 for his basic salary from £308,888, and increased contributions to his pension of £159,002.
Chief executive Steve Waggott (in tie) meets fans
The club is still reliant on funding by owners Venky’s, an Indian poultry and pharma company, who have loans of £148m on the balance sheet.
The sales of Adam Wharton to Crystal Palace and Sammie Szmodics to Ipswich Town amounted to £23.8m.
A footnote to the accounts confirmed that an amount of additional funding will be required, but is dependent on the net proceeds of any player trading, on field performance, and availability of bank facilities.
Ultimate parent company, Venky’s (or Venkateshwara Hatcheries Private Limited to give them their full name) has confirmed it has sufficient funds and is willing to provide such additional financing as may be required.
In addition the notes include reference to ongoing legal action in the Indian courts, following a government query over the amount of money leaving the country.
“The directors are pleased to confirm that the ED issued a No Objection Certificate, dated 12 March 2024, which confirmed that VHPL has been granted permission to make a remittance of £15 million to its wholly owned subsidiary, namely Venkys London Limited, the immediate parent of BRFC. This permission is subject to certain conditions which have been met already or that will be met prior and subsequent to the remittance being made.”
In September 2023 TheBusinessDesk.com reported that Venky’s had nine properties worth £7m, across two different Indian states, seized by the government as part of a crackdown on money leaving the country.
Following raids by the Directorate of Enforcement, foreign exchange management and seizing the assets of fugitives, assets worth more than £7m were seized by the Indian government.
The latest development was described at the time as the latest extraordinary twist in a bizarre ownership story, even in the context of British football. The Rao family haven’t attended a game at Ewood Park since Mrs Desai’s husband was hit on the shoulder by a snowball thrown by a protesting fan in January 2013, angered at relegation from the Premiership the previous season and the ensuing chaos at the club.
The accounts also record several high level departures from the backroom staff at the club, including Mike Cheston, Finance Director, after 10 years’ service along with Club Secretary lan Silvester who had spent 11 years at the club.
The club will also try to increase commercial revenue streams under a new structure of a Chief Operating Officer and Head of Commercial. “Key to any growth plan will be the further development of our Business Club, improving match day experience and attendance levels where and whenever possible,” the notes said.
