Venky’s close buddy has been appointed Director of Blackburn Rovers.
Sreenivasa Rao has been appointed as a Director of Blackburn Rovers.
Rao has over 35 years of experience with the Venky’s company and is currently the General Manager of Finance for Venkateshwara Hatcheries Private Limited (VHPL). Venky’s London Limited, which owns Blackburn Rovers, is the parent business.
Rao will work inside the current management structure and is a Venky’s loyal ally. Given the recent geopolitical financial concerns, it is expected that Rao would work with the board to help manage the club’s finances.
New Indian tax laws have limited the owner’s spending ability in the UK. This had an impact on Rovers’ summer business, and as a result, all club finances are being scrutinized.
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Chief Executive Steve Waggott indicated that monies were being divided between on-field and off-field overheads to ensure Rovers ran smoothly. Despite the club’s financial difficulties, Leopold Wahlstedt and Semir Telalovic were signed during the transfer window.
Rao will be headquartered in India alongside colleague Director Ghandi Babu, creating yet another direct link between the UK and Indian operations. It gives CEO Waggott and Finance Director Mike Cheston an additional point of contact with the owners. Suhail Shaikh, a consultant, and Robert Coar, a non-executive director, remain on the board.
According to the Lancashire Telegraph, this appointment has been in the works for some months and is not a direct result of last week’s revelations about Venky’s assets being taken by the Indian government.
Due to a tax issue, the Bank of India claimed assets from VHPL worth £7.3 million last week. This revolves around Venky’s purchase of a Lancashire home from Gary Neville in 2011.
To accomplish the purchase, VHPL formed a new business, Venky’s Overseas Limited. It is reported that it was formed as an agriculture and mining firm with the Bank of India with the intention of growing its portfolio internationally. However, an inquiry into the business revealed that Venky’s Overseas Limited paid money to purchase the property.
Although VHPL paid off the debt, the authorities saw it as a potential tax concern. The Indian government has tightened its grip on money leaving the country for offshore investment, which has hurt Rovers’ transfer market operations.
Gregg Broughton, Rovers’ Director of Football, will meet with The Lancashire Telegraph on Wednesday to discuss the club’s summer transfer window. Questions concerning India’s geopolitical concerns and the club’s funding should shed additional light on the situation.
