Blackburn Rovers are hopeful Asian poultry giants Venky’s will become the club’s new owners by the end of November.
The Indian conglomerate, the Venkateshwara Hatcheries Group, is expecting to complete a deal next month which would bring much-needed investment into Ewood Park.
Rovers and representatives from Venky’s have held detailed talks over the past few days and, after significant progress was made yesterday, now look ready to seal a deal.
Venky’s have already held successful talks with the Premier League and have gone through an extensive period of due diligence – an exploration of the club’s books.
While final discussions still need to take place, this is the furthest Rovers have ever been in their ongoing attempts to sell the club since the Walker Trust put them on the market back in 2007.
Rovers have always remained tight-lipped on the process but yesterday chairman John Williams confirmed to the Lancashire Telegraph “both parties are hopeful” the deal will go through in the next few weeks.
Ewood park
This is the most bullish statement the club have made on their future with Venky’s themselves claiming they ‘expect’ to buy the club next month.
Rovers chairman Williams said: “A series of meetings, including discussions with the Premier League, have followed an extensive due diligence process.
“Both parties are hopeful that the transaction will be completed in November.”
Venky’s is the third Indian group known to have shown an interest in the club over the past few months, with Ahsan Ali Syed and Saurin Shah previously declaring their interest.
Blackburn’s large Asian population is understood to be a draw for Indian buyers, while it is also believed there is an untapped Asian market for Premier League football.
Mr Ali Syed, who was favourite to buy the club back in August, declined to comment on the situation.
Ahsan Ali Syed
But the Lancashire Telegraph can confirm his bid for the club never reached the stage Venky’s is now at.
The size of Venky’s investment remains unknown but it is understood Rovers have been impressed by the credentials of the £1billion poultry conglomerate.
Rovers don’t expect an injection of funds to match the £300million Mr Ali Syed claimed he would invest, but believe Venky’s leadership will leave them in a healthy financial position.
Chairperson Anuradha J Desai, said: “We expect to be the first Indian company to acquire a Premier League team and we are particularly delighted that the team is Blackburn Rovers, with whom we believe we have many shared values and ambitions.”
It is also understood sports agency Kentaro could form a part of Venky’s ownership of Rovers, although this has not been confirmed by either party.
Worldwide agency Kentaro specialises in the acquisition and distribution of the international television rights of national football federations, football clubs and leagues.
Sam Allardyce
It also has a number of in-house agents who deal in talent management and last year sealed a corporate partnership deal with Jerome Anderson’s Sport Entertainment and Media Group.
SEM represents more than 150 professional footballers and clubs in Europe’s top leagues and has worked for top stars such as Rio Ferdinand, Thierry Henry and John Obi Mikel.
It is thought Kentaro could use the potential purchase as a way of introducing some of their top young foreign talent to the English game.
Blackburn home strip
The Indian-based chicken industry leaders will be at the head of any takeover, although the details of their future leadership are yet to be disclosed.
Rovers remain the only Premier League team not to receive any investment from their owners and have struggled in recent season to compete on a financial level with their rivals.
Manager Sam Allardyce will hope a change in ownership will allow him to spend reasonable funds in the transfer market after admitting last week the club needed investment to progress.
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THE Indian family set to buy Blackburn Rovers are not expected to attempt a Manchester City-style revolution at Ewood Park.
Transfer funds are understood to be available for the forthcoming January transfer window, but supporters should not expect the club to start extravagantly splashing the cash.
Rovers can expect signings to help them sustain their position as a top-half team pushing for the Europa League, rather than spending carried out in the past by the likes of Chelsea and Manchester City.
The owners of Indian poultry giant Venky’s are confident of sealing a £46million buyout of the club a week tomorrow, in a deal that will clear the club of existing £16million debts.
The Lancashire Telegraph understands the purchase would be done on an equity basis, rather than a controversial loan-based leverage deal of the type Tom Hicks and George Gillett used to buy Liverpool.
Manager Sam Allardyce’s position at the club is not believed to be in jeopardy, while sources close to the deal have indicated there would be little change to the current personnel running the club.
Blackburn today confirmed the takeover of the club by Indian poultry giant Venky’s is expected to be completed next month.
The deal with the Venkateshwara Hatcheries Group should see the Blackburn become the first Barclays Premier League club to be bought by an Indian company.
Venky’s chairperson Anuradha J Desai said in a statement: “We expect to be the first Indian company to acquire a Premier League team and we are particularly delighted that the team is Blackburn Rovers, with whom we believe we have many shared values and ambitions.”
Blackburn chairman John Williams added: “A series of meetings, including discussions with the Premier League, have followed an extensive due diligence process.
“Both parties are hopeful that the transaction will be completed in November.”
Venky’s have been one of a number of companies who have gone through the process of due diligence and inspected the club’s accounts.
The Jack Walker Trust put Blackburn up for sale two years ago in the hope of attracting buyers willing to invest in the club, but Venky’s is the first company to have satisfied club chiefs about their future intentions.
It is believed that international sports agency Kentaro, which specialises in selling international TV rights to football, could also be involved in the new ownership structure.
Venky’s were the third Indian company to have considered a takeover following businessmen Saurin Shah and Ahsan Ali Syed, whose moves for the club failed to materialise into anything concrete.
Blackburn manager Sam Allardyce has warned that investment is vitally needed.
Allardyce said last week: “I think it’s necessary there is a conclusion because it does leave the club in limbo.
“Investment is needed in every football club and recently that investment has dried up because the club is up for the sale and the Trust wanted to move it on.
“If it goes on any longer and you don’t get any investment it becomes a very dangerous and precarious situation. It needs investment to stay in this league, never mind achieving success.”
Venky’s are established as Asia’s largest poultry group and have an annual turnover of £1billion, last year recording a profit of £118million.
The group is now run by the founder’s 47-year-old daughter Anuradha Desai, who recently told Business Line of her approach to business, saying: “You have to invest in building up relationships with people, give them the freedom to work towards goals and when you spend time with them and understand them, they are ready to put in their best for you, be it man or woman.
“You can’t hold a stick and frighten anybody into working for you.
“Instead, if you sit with them and work with them, you can be assured of results.”