Blackburn Rovers appoint Venky’s trusted ally as Director
Rao has worked within the Venky’s group for over 35 years and is currently the General Manager of Finance for Venkateshwara Hatcheries Private Limited (VHPL). That is the parent company for Venky’s London Limited which owns Blackburn Rovers.
Rao will work within the current management structure and is a trusted ally of the Venky’s. Considering the geopolitical financial issues that have arisen in recent months, it’s assumed Rao will work with the board to help manage the club’s finances.
New tax laws in India have restricted the owner’s spending power in the UK. That had a knock-on effect on Rovers’ summer business and all finances throughout the club are being scrutinised, as a result.
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Chief Executive Steve Waggott revealed that funds were being split between on and off-field overheads to ensure Rovers operated with no disruption. Despite the financial issues, the club spent transfer fees to bring in Leopold Wahlstedt and Semir Telalovic during the transfer window.
Rao will be based in India alongside fellow Director Ghandi Babu, providing another close link between the UK operations and India. It provides CEO Waggott and Finance Director Mike Cheston an extra contact close to the owners. Consultant Suhail Shaikh and Robert Coar remain Non-Executive Directors on the Board.
The Lancashire Telegraph understands that this appointment has been in the pipeline for several months and is not a direct reaction to last week’s stories about Venky’s assets being seized by the Indian Government.
The Bank of India claimed assets from VHPL to the tune of £7.3 million last week due to a tax issue. This centres around the Venky’s purchase of a Lancashire mansion in 2011 that used to belong to Gary Neville.
VHPL set up a new company, Venky;’s Overseas Limited, to make the purchase. It’s claimed that was set up as an agriculture and mining company with the Bank of India, with the aim of expanding its portfolio overseas. However, an investigation into the business has shown that money was spent by Venky’s Overseas Limited to purchase the property.
Although the loan was paid off by VHPL, the government has viewed this as a potential tax issue. The Indian government has tightened its belt over money leaving the country for overseas investment, which impacted Rovers’ business in the transfer market.
Director of Football Gregg Broughton will speak to The Lancashire Telegraph on Wednesday to review Rovers’ summer transfer window. Questions about the geopolitical issues in India and the club’s funding should provide more clarity on the situation.
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