Rovers Being Sold Or Put Into Administration?...LT Report

ElectroClaret · Post by **ElectroClaret** » Tue May 16, 2017 6:37 pm

LT reporting that TWO giant accountancy firms have been brought into Deadwood to carry out
an "overview". KPMG and Deloitte have other been engaged by the Vs to report over four weeks
to produce separate reports, supposedly to look at efficiencies in the running of the club.
Why would they bring two firms in, though, unless it's for due diligence for a buyer prior
to a sale? Or maybe sizing up the assets for creditors?

Is this common practice?

Rowls · Post by **Rowls** » Tue May 16, 2017 6:46 pm

You nailed the answers in your OP.

Other reason is that they have a credible document to back them up when the firesale starts and they have to justify it to their whining fans* and the media.

* all 5000 of them

Stayingup · Post by **Stayingup** » Tue May 16, 2017 7:18 pm

Prelude to administration. These two compnanies will be very costly. They will advise the Venkys of the most least costly way to extricate themsleves from this disastrous venture.

bfcjg · Post by **bfcjg** » Tue May 16, 2017 7:24 pm

I think due dilligence would involve a buyer as well.Can't understand two separate accountants perhaps the financialy astute posters such as royboy could offer an opinion. Could it be connected to the Indian tax raids ?

burnmark · Post by **burnmark** » Tue May 16, 2017 7:25 pm

Is there still a points deduction for a club who goes into administration?

Leisure · Post by **Leisure** » Tue May 16, 2017 7:32 pm

burnmark wrote:Is there still a points deduction for a club who goes into administration?

Hopefully!

ElectroClaret · Post by **ElectroClaret** » Tue May 16, 2017 7:33 pm

Yeah, either ten or twelve points, I think.

jedi_master · Post by **jedi_master** » Tue May 16, 2017 7:34 pm

Yep, 12 points I believe.

Sidney1st · Post by **Sidney1st** » Tue May 16, 2017 7:34 pm

Income in League 1 is reputed to be £7 million approx.

Current club running costs without wage bill is rumoured to be £11 million.
Wage bill is possibly around the £20 million but under league 1 rules it can't exceed a % of the club's income, 60-70% I think.

If you were the Venkys wouldn't you hire outside help to try and find ways to cut costs and make the club more cost efficient?

If they put the club into administration, does that solve anything when £100 million is owed to the Venkys themselves?
They can write that debt off anytime they like by converting it into shares like they've already done with some of it the other year.

Rovers is on its arse, is bloated and needs sorting out properly.
I'd expect to see Brockhall sold, or the other youth facility round the corner, maybe both.
The Academy the rovers fans all cream themselves over will probably be downgraded too, that's costing £2 million or so a year I think for a lower level Cat 1 academy.

Remember when we were fed the line about cutting our cloth accordingly, well this actually needs to be enforced down the road.

They could sell it, but they'll need to write off the money they're owed, I don't know if they'd want to do that yet.

I'd expect some low season ticket sales too, because reality is starting to sink in with the Rovers fans.

Vegas Claret · Post by **Vegas Claret** » Tue May 16, 2017 7:41 pm

how delightful

Royboyclaret · Post by **Royboyclaret** » Tue May 16, 2017 7:46 pm

Spot on summary by Sidney.

Wages in League One need to be LESS than 60% of Turnover (less than 55% the following year in League Two), otherwise they will re-enter embargo. I wonder if anyone has communicated to India that their Wage bill for next season can't exceed £4.5m?

Difficult to know what the Venky's are up to with this move, so it's watch this space.

Sidney1st · Post by **Sidney1st** » Tue May 16, 2017 7:48 pm

I always forget what the wages turnover needs to be.

I really should pay more attention to that one.

bfcjg · Post by **bfcjg** » Tue May 16, 2017 8:04 pm

I know some local contractors who wont work or supply them such are the problems getting paid.

IanMcL · Post by **IanMcL** » Tue May 16, 2017 8:24 pm

Rowls wrote:You nailed the answers in your OP.

Other reason is that they have a credible document to back them up when the firesale starts and they have to justify it to their whining fans* and the media.

* all 5000 of them

You are confusing the holes with the fan.

ElectroClaret · Post by **ElectroClaret** » Tue May 16, 2017 8:24 pm

That's inflation....

kaptin1 · Post by **kaptin1** » Tue May 16, 2017 8:28 pm

ElectroClaret wrote:LT reporting that TWO giant accountancy firms have been brought into Deadwood to carry out
an "overview". KPMG and Deloitte have other been engaged by the Vs to report over four weeks
to produce separate reports, supposedly to look at efficiencies in the running of the club.
Why would they bring two firms in, though, unless it's for due diligence for a buyer prior
to a sale? Or maybe sizing up the assets for creditors?

Is this common practice?

Maybe they hired one, got fed up with them rea lily quickly when they hadn't produced a report in the first day, so sacked them and hired a second

Terrier · Post by **Terrier** » Tue May 16, 2017 8:42 pm

According to BRFC forum this is costing £850.000 plus, as a few fans on there have said if this had gone towards a player in jan they may still be in the championship!

DAVETHEVICAR · Post by **DAVETHEVICAR** » Tue May 16, 2017 8:51 pm

If they had sacked Coyle two weeks earlier they would still be in the Championship.

Dark Cloud · Post by **Dark Cloud** » Tue May 16, 2017 8:52 pm

Might it have something to do with the tax evasion investigation reputedly underway in India? They might be trying to prove (big) losses.

COYC73 · Post by **COYC73** » Tue May 16, 2017 9:00 pm

Terrier wrote:According to BRFC forum this is costing £850.000 plus, as a few fans on there have said if this had gone towards a player in jan they may still be in the championship!

Wasn't Wolves after one of their players for 3 million or something last week....?
That will be what is financing it....

AshevilleNCClaret · Post by **AshevilleNCClaret** » Tue May 16, 2017 9:08 pm

DAVETHEVICAR wrote:If they had sacked Coyle two weeks earlier they would still be in the Championship.

don't forget duffy's two own goals....

no one what to make of these accountants but the longer it drags out the worse it will be for them

Croydon Claret · Post by **Croydon Claret** » Tue May 16, 2017 9:16 pm

According to the football league they're allowed to spend 75% of turnover on players wages in the first year. Assume this is still the case?

http://www.efl.com/news/article/2015/fo ... 32728.aspx" onclick="window.open(this.href);return false;

Royboyclaret · Post by **Royboyclaret** » Tue May 16, 2017 9:49 pm

Looks like that is correct Croydon, but for one transitional season only. Then it's less than 60%.

So £5m now instead of £4.5m, they only have to reduce their latest Wage bill by £15m. Should be easy.

fatboy47 · Post by **fatboy47** » Tue May 16, 2017 9:52 pm

i swear all this stuff is giving me the horn big time.

I mean really...it's giving me the horn.

Spijed · Post by **Spijed** » Tue May 16, 2017 10:08 pm

On their website BRFCS someone has posted a highly amusing story about their demise:

https://www.brfcs.com/mb/index.php?/for ... ys-part-1/" onclick="window.open(this.href);return false;

I hope no Burnley supporter has an ounce of sympathy regarding their plight!

Buxtonclaret · Post by **Buxtonclaret** » Tue May 16, 2017 10:13 pm

DAVETHEVICAR wrote:If they had sacked Coyle two weeks earlier they would still be in the Championship.

So, by inference, he's not the classless buffoon we know him to be then....

ElectroClaret · Post by **ElectroClaret** » Tue May 16, 2017 10:13 pm

Yes, read that earlier today, Spijed. The incompetence is incredible.

As I said on another thread, Steve Kean must not have been able
to believe his luck at being given a contract by these loons.

dsr · Post by **dsr** » Tue May 16, 2017 10:17 pm

So they've got two accountancy firms in, to tell them whether they're in a mess? I reckon that's two firms more than they need. I blind man on a galloping horse (though being Blackburn, that could be taken two ways) could tell them that.

randomclaret2 · Post by **randomclaret2** » Tue May 16, 2017 10:29 pm

£850,000 for someone to tell you you don't have a pot to **** in ?

ElectroClaret · Post by **ElectroClaret** » Tue May 16, 2017 10:37 pm

dsr wrote:So they've got two accountancy firms in, to tell them whether they're in a mess? I reckon that's two firms more than they need. I blind man on a galloping horse (though being Blackburn, that could be taken two ways) could tell them that.

Make that three accountancy firms.

For there's also PM&M accountants, a Blackburn firm who do audits for Rovers as standard, three times a year.
With all those bean counters involved, how can they possibly fail?

MiltonKeynesClaret93 · Post by **MiltonKeynesClaret93** » Tue May 16, 2017 10:41 pm

I work for Deloitte and will keep an eye on this, interesting stuff.
All I know is our services aren't cheap so, hopefully Rovers fill their boots.

Spike · Post by **Spike** » Tue May 16, 2017 10:41 pm

Kenny Barsteward is on the touch line saying somethings not right
There's far more accountants than supporters in sight

ElectroClaret · Post by **ElectroClaret** » Tue May 16, 2017 10:44 pm

MiltonKeynesClaret93 wrote:I work for Deloitte and will keep an eye on this, interesting stuff.
All I know is our services aren't cheap so, hopefully Rovers fill their boots.

You're our new agent, MK.

Sidney1st · Post by **Sidney1st** » Tue May 16, 2017 10:47 pm

I'd be happy to take the £850k and tell them they're financially knackered.

Stayingup · Post by **Stayingup** » Tue May 16, 2017 10:55 pm

ElectroClaret wrote:Make that three accountancy firms.

For there's also PM&M accountants, a Blackburn firm who do audits for Rovers as standard, three times a year.
With all those bean counters involved, how can they possibly fail?

More bean counters than fans.

dsr · Post by **dsr** » Tue May 16, 2017 10:58 pm

Stayingup wrote:More bean counters than fans.

And more bean counters than beans, as well.

box_of_frogs · Post by **box_of_frogs** » Wed May 17, 2017 7:35 am

2017 just keeps on giving!

MACCA · Post by **MACCA** » Wed May 17, 2017 8:09 am

Sidney1st wrote:I'd be happy to take the £850k and tell them they're financially knackered.

You can take of the 0 and I'll do it!

In fact if they allow me to do it at half time, in the first home game complete with the news of a 12 point deduction, I'll do it for free!

FulledgeClaret · Post by **FulledgeClaret** » Wed May 17, 2017 8:58 am

Accountants brought in to find a spare plug socket and 50p for the meter

ElectroClaret · Post by **ElectroClaret** » Wed May 17, 2017 10:44 am

Quite a few Rovers fans on the LT message board saying Tony Mowbrays much-anticipated meeting
with the Venkys has now been cancelled. From previously-reliable sources on Facebook, apparently.

Things maybe moving rapidly.

MiltonKeynesClaret93 · Post by **MiltonKeynesClaret93** » Wed May 17, 2017 10:59 am

Auditing and consultancy from our side.
Could be some major cost cutting measures being taken soon.

Sidney1st · Post by **Sidney1st** » Wed May 17, 2017 11:02 am

ElectroClaret wrote:
Things maybe moving rapidly.

Downhill we hope.

Herts Clarets · Post by **Herts Clarets** » Wed May 17, 2017 11:19 am

MiltonKeynesClaret93 wrote:Auditing and consultancy from our side.
Could be some major cost cutting measures being taken soon.

Running costs 10m
Wages 22m

Income 7.5m

Balance -24.5m

Going to be a bloody sharp blade to cut that lot down

MiltonKeynesClaret93 · Post by **MiltonKeynesClaret93** » Wed May 17, 2017 11:25 am

You're not wrong.
Have to remember there are good, hard working people at that club who could be at risk of losing their jobs but, there are plenty of folks on the payroll earning far more they can get rid of first.

Sidney1st · Post by **Sidney1st** » Wed May 17, 2017 12:01 pm

Hence why there haven't been any contract negotiations for players yet, they've a decent number out of contract this summer, plus the ending of loan deals.

I think some of the lads they signed last summer were given £20k a week deals, they clearly didn't learn

Their youth team better be ready to step up.

randomclaret2 · Post by **randomclaret2** » Wed May 17, 2017 12:39 pm

Madame Rao has apparently contacted the Football League to confirm they can comply with League 1 wage regulations next season whilst keeping their best players, but has asked if it would be OK if they entered a 5 a side team.

Silkyskills1 · Post by **Silkyskills1** » Wed May 17, 2017 12:47 pm

I think it was Charlie Mulgrew who said after relegation was confirmed that they would let the dust settles, re-group and then go again. None of those situations are going to happen.

jlup1980 · Post by **jlup1980** » Wed May 17, 2017 12:49 pm

Lets see how many players they have who want to stay and put in a promotion push next season. I suspect we'll see players leaving at a rate akin to rats leaving a sinking ship.

bfcjg · Post by **bfcjg** » Wed May 17, 2017 12:51 pm

If I had the wings of an angel
The dirty black @rse of a crow
I'd fly over Ewood tomorrow
And sh1t on the Tesco below .

minnieclaret · Post by **minnieclaret** » Wed May 17, 2017 12:52 pm

Elton could well sing "Don't let the sun go down on me" to tears from the Wovers faithful. During his Deadwood appearance.