Paper Round: Blackburn risk financial meltdown
Sun, 11 Dec 02:51:00 2011
Blackburn Rovers may not be able to pay their players in the New Year according to a report in the Mail On Sunday.
In a piece written by the highly respected Nick Harris, it is alleged that Barclays have demanded the club deposit £10 million in their account by New Year’s Eve or the bank will refuse to extend the credit needed to pay the players’ wages beyond January.
The piece explains that: "The crisis is the result of Barclays running out of patience with the failure of Venky’s, the Indian poultry conglomerate who own the club, to honour contractual obligations made when they bought Rovers in November last year."
The club's co-owner Anuradha Desai is believed to have no interest in paying the money, "believing Blackburn can fund themselves without fresh cash from India."
The paper goes on: "She has the final say at Rovers and if her stance on funding is maintained, the club’s overdraft at Barclays, currently around £6m, could burst beyond its agreed limit on January 23, when wages totalling £4m-5m are due to be paid.
"The club could then face meltdown within a month. If the overdraft limit is exceeded and there is no sign of a cash injection, Barclays can stop funding the club, which could then technically become insolvent."
Eurosport
http://uk.eurosport.yahoo.com/11122011/58/paper-round-blackburn-risk-financial-meltdown.html
