Ryan Alebiosu deal speaks volumes about what Venky’s are planning at Blackburn Rovers, a £5m injection confirmed
In light of Venky’s financial limitations, Blackburn’s acquisition of Ryan Alebiosu demonstrates their new transfer policy of looking for
value overseas.
Blackburn Rovers has had a busy transfer window thus far, battling Portsmouth to acquire a “brilliant” Sunderland star and chasing a
“quality” Ajax midfielder who played in the Championship the previous season.
It is difficult to overlook the activities taking place behind the scenes with the club’s owners, the Venkys, as they attempt to add new
players before the season begins. A takeover was rumoured back in March, but the Venky’s are still at Ewood Park.
Adam Williams, our football finance specialist, has explained why the club’s owners’ continuous financial difficulties are connected to
their recent acquisition of Ryan Alebiosu, who played his youth at Arsenal.
Blackburn’s new transfer play, why they’re looking beyond the EFL
Williams clarified, “With the players Blackburn is pursuing and has signed in recent windows, we’re seeing a clear pattern.”
Instead of shopping in the EFL, they are examining markets where they believe there are deals to be found.
“The explanation is rather obvious. Up until recently, Venky’s, the proprietors, had to provide a personal guarantee to match every £1
they sent to Blackburn as part of an ongoing investigation in India.
“In layman’s terms, this has meant that the financial burden on them to fund Rovers has doubled. The good news is that the courts in
India ruled that the latest cash injection, which was worth £4.85m and was made last month, only required a 50 per cent guarantee.
“Hopefully, that will mean they are more inclined to send more money for more than just the bare minimum in terms of operating
costs. That’s why the Adam Wharton money hasn’t been reinvested in the transfer market – because it’s been needed to cover wages
while the cost of sending money from India has increased for the Venky’s.
“The largest expense for Blackburn, like almost every other EFL team, is not transfers, but rather the wage bill. Rovers’ transfer
amortisation, which is how teams account for player signings over time, was over £4 million per season when they returned to the
Championship, but it is currently nearly half of that amount. In comparison, their labour bill has stayed constant at about £25 million,
but I anticipate that it will have decreased somewhat in 2024–2025.
Players like Tavares, De Neve, and Alebiosu, in my opinion, make less money than a player with a similar profile who they might have
acquired in the EFL. Nevertheless, the fact that they are covering some players’ expenses suggests that the strain of sending money
from India has lessened to some extent.
In the end, though, they are at the Venky’s mercy. They appear to be merely keeping them on life support rather than providing them
with a legitimate platform to grow after losing more than £300 million at Ewood Park. Why? I don’t know. For them, it offers nothing.
Blackburn is a financial disaster.
Who are the Venky’s, and how long have they been at Blackburn?
This indicates that they have been in charge for almost 15 years. They have faced significant financial difficulties and criticism during
their term.
Venky’s ownership has seen Blackburn relegated twice, from the Premier League in 2012 and the Championship in 2017, after initially
pledging significant investment. The team spent a season in League One before returning.
Their financial load has occasionally been effectively doubled as a result of continuous financial limitations, including problems
transferring money from India because of an investigation.
Although they have invested large sums to cover expenses, especially salaries, estimates show they have lost more than £300 million
at Ewood Park, which frequently creates the impression that the team is struggling rather than being given a chance to grow.
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