Former Premier League winners risk going bust as director confirms ‘material uncertainty exists’ over club’s future
BLACKBURN have admitted there are major doubts over the club’s future as a result of the Venky’s legal battle with the Indian government.
In club accounts submitted this week Blackburn director Jitendra Desai writes that “a material uncertainty exists” over the club’s ability to continue operating.
Blackburn made a profit of £1.8m last year, but that was down to the sales of Adam Wharton, Thomas Kaminski and Ash Philips to Crystal Palace, Luton and Tottenham respectively raising almost £23m.
Without continued player sales the club need funding from the Venkys to stay in business, but the Indian government have blocked them from transferring money overseas.
The Venkys’ parent company are involved in a long-running legal case with the Directorate of Enforcement in India in an attempt to get the ban overturned, with a hearing due to take place in Delhi this month.
The Directorate of Enforcement are the branch of the Indian finance ministry in charge of investigating money laundering and breaches of foreign exchange laws.
The Directorate allowed Venkys to make payments of £3.5m and £11m to Blackburn in June and October 2023 respectively after they pleaded for an exception to help keep the club afloat.
No transfers have been since however, leaving Blackburn at risk of running out of money next year.
Blackburn’s accounts were audited by a firm of independent accounts, PM+M, who issued a similar warning.
They wrote: “Until such time as the legal matter is concluded satisfactorily, a material uncertainty exists that may cast significant doubt on this group and the company’s ability to continue as a going concern.”
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Blackburn currently sit ninth in the Championship table, three points adrift of the play-off spots.
They next face newly-promoted Portsmouth next weekend.