VENKY’S CONTROVERSIAL reign at Blackburn Rovers is under renewed scrutiny following the emergence of an extraordinary letter from the club’s deputy chief executive that urges the owners to sack Steve Kean as manager, settle a £10 million (€12.4m) debt to avoid the threat of administration, and lays bare the dysfunctional relationship between the owners and the club’s board.
The letter, from the deputy chief executive, Paul Hunt, to the Rovers co-owner Anuradha Desai and dated December 21st, 2011, delivers the prescient warning that Blackburn are heading for relegation under Kean – an outcome confirmed by defeat against Wigan on Monday – and risk being foreclosed by the banks or HMRC. Hunt fears that he and fellow directors could lose their homes should Rovers enter administration.
Venky’s have since settled their entire overdraft with Barclays and have no outstanding debt with that bank but failed to heed much of Hunt’s advice. The former commercial director at Leicester City has led the executive team at Ewood since June 2011.
Hunt's letter outlines the extent of the disconnect between the India-based owners and the executive team at Ewood Park. The letter was revealed yesterday on sportingintelligence.com.
In a 10-point plan that proposes “significant changes to save the club, perhaps from relegation but also perhaps from administration”, Hunt requests:
His promotion to CEO to avoid confusing staff, supporters and media, including a modest increase in salary. “I am currently the lowest paid senior club official in the Premier League,” he writes.
A £10 million loan from Venky’s as Barclays are “quickly losing patience as we cannot give answers”. He also states: “The position with the finances is a cause for grave concern. Auditors KPMG have put as many obstacles as they can in the way of signing off the accounts due to their concerns.”
A change of manager who, Hunt claims, has lost the crowd and the dressingroom. The letter is dated the day after Blackburn’s 2-1 home defeat by fellow strugglers Bolton when supporters’ criticism of Kean reached its height.
That the executive team at Blackburn receive authority to run the club and greater trust from the owners. Hunt’s letter states: “With our fiduciary responsibilities as directors, if the club goes under, the directors (including Vineeth, Mahesh and Gandhi Babu) are all potentially personally liable for that failing and the courts could take our houses from us. My family do not deserve this.”
An end to public statements being issued by Venky’s in India and not from Blackburn.
Regular visits to meet the owners in India. Six months after his appointment as deputy CEO, Hunt reveals, he has not met Anuradha Desai.
At least one member of Venky’s turn up for “at least a quarter of games”. The Indian owners have rarely been seen at Ewood Park and were absent when Blackburn’s relegation was confirmed on Monday.
Responsibility to “hire and fire staff”, naming a club executive who Hunt says “is against the owners and spreads the word wherever he can”.
Action be taken to prevent the club “losing sponsors and suppliers”. Hunt claims a £800,000 (€992,000) a year contract with Umbro is in jeopardy due to the manufacture of Rovers shirts in India and that “The Blackburn Rovers and Venky’s brands are both suffering terribly.”
Neither Hunt nor Venky’s have yet commented on the contents of the letter.
Venky’s purchased Rovers from the Walker family trust in a £44 million (€54.5m) deal in November 2010 and the club’s fortunes have subsequently plummeted, with Monday’s defeat sealing relegation from the Premier League for the first time in 11 years. Kean rejected calls for his resignation and despite a dismal campaign and mass protests against him from supporters, claimed he retained Venky’s backing and could oversee promotion next season.
Kean is a client of the SEM sports agency, who advised Venky’s on their takeover, and refused to apportion blame for relegation with the owners on Monday. Instead, he called on Venky’s to ensure the bulk of the Blackburn squad remains intact for next season and is enhanced by “one or two experienced players”, even though he defended the departures of Ryan Nelsen, Chris Samba and Jason Roberts. Michel Salgado has not played this year as the club seeks to avoid handing the former Real Madrid defender an automatic 12-month extension to his contract.
The Blackburn manager’s rebuilding plans appear optimistic at best. Junior Hoilett is out of contract this summer and has been linked with Arsenal and Bayern Munich, while doubts surround the futures of Steven Nzonzi, Gael Givet and Paul Robinson.
Guardian Service
