8:18am Thursday 23rd February 2012 in News
By Andy Cryer, Blackburn Rovers reporter
BLACKBURN MP Jack Straw is among a group of high-profile Rovers fans who have given their backing to plans for a supporters’ trust takeover of the club.
Plans to buy Blackburn Rovers from Venky’s and put it into community leadership were officially launched yesterday, after businessman Wayne Wild declared his ambitions earlier this month.
While the funds needed to facilitate a takeover would depend on Rovers’ league position, with Venky’s still adamant they are not for sale, Wild believes the best ownership model for the club is to be entirely owned by the supporters through a trust.
They have targeted raising an initial £10m through a share issue – aiming to sell 10,000 shares at £1,000 each – as frustrations grow over the Venky’s regime at Rovers.
Straw has joined a number of prominent Rovers supporters who have backed the plans and are willing to help bring it to fruition and provide expert support where needed.
He said: “The work has been done by Wayne Wild but I am supporting it.
“I think if you can find agreement with the Venky’s and we are able to raise sufficient funds, which is a big if, then it is a sensible approach.
“It is going to be very hard to get it off the ground but I applaud Wayne Wild’s efforts and those of everyone else involved.”
As well as Straw, local MPs Jake Berry and Graham Jones and former leader of Blackburn council and chairman of Blackburn college, Sir Bill Taylor, have voiced their support.
Kate Hollern, leader of Blackburn with Darwen council, is also said to be on board.
Sir Bill Taylor said he wrote to the Venkys last year “because I thought they were completely disconnected from the fan base.”
He said: “I support the trust plan but hope that the Venky’s start a dialogue with the fans and come to understand that there is a huge number of people in this town to whom Rovers is the whole of their life outside their family.”
The Blackburn Rovers Supporters Trust has set up a working party comprising of Rovers fans with backgrounds in various business sectors.
Prominent fans groups are backing the bid and a website has been launched at www.brsit.co.uk together with social media campaigns on Facebook and twitter.
Wild, the group director of Rovers’ main sponsor WEC,is the brainchild of the plans, along with Swedish-based American finance expert Daniel Grabko.
Wild said: “At some point, and maybe soon, we believe Blackburn Rovers will be put up for sale. We believe the best ownership model is to be entirely owned by the supporters through a trust.
“We are seeking to engage with the current owners to advise them of our plans and we ask that they consider our proposals seriously as a credible and respectful way to pass on ownership of the club.
“At this stage we are asking Blackburn Rovers supporters if they would be willing to buy a share in their club. The more fans to buy a share, the stronger and more credible our bid will be.
“The aim of the trust is to establish a truly democratic ownership model, which can be independently monitored and held to account by the people who really matter - Blackburn Rovers supporters.”
For more information and to make a pledge of financial support, you can visit www.brsit.co.uk.
Comments(77)
Morst The 88th Min Heartbreaker of Dingles!
says...
8:42am Thu 23 Feb 12
RoversSwiss
says...
8:45am Thu 23 Feb 12
craftandgraft
says...
8:54am Thu 23 Feb 12
calirover
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9:02am Thu 23 Feb 12
midas
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9:19am Thu 23 Feb 12
rover77
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9:21am Thu 23 Feb 12
Daniel Louis Grabko
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9:25am Thu 23 Feb 12
RoversSwiss wrote:I appreciate your apprehension, Swiss, but it seems like you are not taking into consideration that the Club does indeed have a very substantial revenue stream of its own in addition to its expenses, and would not rely on outside funding for its day to day expenses - cash inflows and outflows are not synchronized, of course, but on balance, can be managed just the same as any other business.
The motives of a Rovers Trust are great - although some like the local politicians are just jumping on the popularity bandwagon - but realistically 10 million pounds is nowhere near enough to run a Premiership football club, it's less than 3 months wages. Ask Dave Whelan after spending 100 million pounds at Wigan and Craig White at Rangers, he thought he was rich until he realised the costs of running a top flight football club.
I would be suprised if there were 10,000 Rovers fans who could afford to lose 1000 pounds within months of investing.
The fact is that the modern football club owners are foreign, they are divorced from the club and really couldn't care less about the fans, the Glazers and Abramovich are typical, unfortunately they are the only people with the money. If there is a real Rovers fan with a couple of hundred million to spare that would be great.
Daniel Louis Grabko
says...
9:32am Thu 23 Feb 12
midas wrote:Understand your point, Midas, but how much of that was a cash outlay? (I have no idea, haven't looked it up)
Put £10 million into context. TSI paid £25 million for 51% of Reading!
Ronaldpetercooper
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9:45am Thu 23 Feb 12
craftandgraft
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9:46am Thu 23 Feb 12
Daniel Louis Grabko
says...
9:54am Thu 23 Feb 12
craftandgraft
says...
10:00am Thu 23 Feb 12
Between_the_lions
says...
10:07am Thu 23 Feb 12
Robbie
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10:12am Thu 23 Feb 12
Robbie
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10:22am Thu 23 Feb 12
pepperpot2296
says...
10:32am Thu 23 Feb 12
Morst The 88th Min Heartbreaker of Dingles! wrote:It is an insult to the name of Jack Walker,they should be known as the JUDAS TRUST
What a pity the Walker Trust did not honour Jack Walker's achievements by creating a fans trust instead of selling to Venkys?
.
Perhaps they will now consider getting involved with some support for this initiative and help its transition if the oppotunity arises?
.
33rd....
bring back the good old days
says...
10:32am Thu 23 Feb 12
tiojo
says...
10:41am Thu 23 Feb 12
bring back the good old days
says...
10:42am Thu 23 Feb 12
Daniel Louis Grabko wrote:Dan, isn't this the crux of the issue i.e. potential 'owners' going to the banks/financial institutions for a loan to actually buy the club.
midas wrote:Understand your point, Midas, but how much of that was a cash outlay? (I have no idea, haven't looked it up)
Put £10 million into context. TSI paid £25 million for 51% of Reading!
In the case of Venkys, they paid 17.17 pence for each share, totaling £23m and assumed the debt of the Club at that time, which was approx. £20m, for a total reported purchase price of £43m. It is also reported that Venkys didn't actually pay any cash for the club, but borrowed what they needed in cash.
Readings extrapolated £50m value, and that in the Championship, shows you that it is very difficult to compare the assessment of value between different clubs, and there are many many factors to take into consideration.
pepperpot2296
says...
10:45am Thu 23 Feb 12
Daniel Louis Grabko
says...
10:53am Thu 23 Feb 12
Robbie wrote:Hi Robbie,
sorry.. also
would it not be a better idea to say... for 1 share its a minium donation of 1k... fans who can afford to pay 1.5k,10k etc may offer more.. meaning more money is raised?
Daniel Louis Grabko
says...
11:02am Thu 23 Feb 12
bring back the good old days wrote:bb god -
Daniel Louis Grabko wrote:Dan, isn't this the crux of the issue i.e. potential 'owners' going to the banks/financial institutions for a loan to actually buy the club.
midas wrote:Understand your point, Midas, but how much of that was a cash outlay? (I have no idea, haven't looked it up)
Put £10 million into context. TSI paid £25 million for 51% of Reading!
In the case of Venkys, they paid 17.17 pence for each share, totaling £23m and assumed the debt of the Club at that time, which was approx. £20m, for a total reported purchase price of £43m. It is also reported that Venkys didn't actually pay any cash for the club, but borrowed what they needed in cash.
Readings extrapolated £50m value, and that in the Championship, shows you that it is very difficult to compare the assessment of value between different clubs, and there are many many factors to take into consideration.
Yes, all businesses run along these lines of 'loans', but with the debacles of previous takeovers scattered around and within football wouldn't you think someone would have by now put some proper guidelines down.
What the supporters are wondering is why can't we/the consortium do similar? I know the answer is you have to have some sizeable capital asset to 'back it up', but although Venkys claimed to have, it seems to us that they have not used any, instead it appears they have 'pillaged' the club to satisfy the debt.
Please note I say 'appears' as that is what it is looking like from the outside.
bring back the good old days
says...
11:12am Thu 23 Feb 12
Daniel Louis Grabko wrote:Dan,
bring back the good old days wrote:bb god -
Daniel Louis Grabko wrote:Dan, isn't this the crux of the issue i.e. potential 'owners' going to the banks/financial institutions for a loan to actually buy the club.
midas wrote:Understand your point, Midas, but how much of that was a cash outlay? (I have no idea, haven't looked it up)
Put £10 million into context. TSI paid £25 million for 51% of Reading!
In the case of Venkys, they paid 17.17 pence for each share, totaling £23m and assumed the debt of the Club at that time, which was approx. £20m, for a total reported purchase price of £43m. It is also reported that Venkys didn't actually pay any cash for the club, but borrowed what they needed in cash.
Readings extrapolated £50m value, and that in the Championship, shows you that it is very difficult to compare the assessment of value between different clubs, and there are many many factors to take into consideration.
Yes, all businesses run along these lines of 'loans', but with the debacles of previous takeovers scattered around and within football wouldn't you think someone would have by now put some proper guidelines down.
What the supporters are wondering is why can't we/the consortium do similar? I know the answer is you have to have some sizeable capital asset to 'back it up', but although Venkys claimed to have, it seems to us that they have not used any, instead it appears they have 'pillaged' the club to satisfy the debt.
Please note I say 'appears' as that is what it is looking like from the outside.
This is absolutely a major point - the BRSIT and any potential partners out there that might want to join forces with it absolutely will not want to actually increase the debt of the Club through any acquisition process.
It is of course resigned to the fact that taking on whatever current debt is there is a forgone conclusion, the bank must be paid. But a debt acquisition is just not an option as the BRSIT would never condone putting substantial new debt on the Club's shoulders.
makaveli96
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11:12am Thu 23 Feb 12
eddyo
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11:17am Thu 23 Feb 12
makaveli96
says...
11:20am Thu 23 Feb 12
craftandgraft wrote:He was always my favorite Jockey
remember the ' money's no object ' days under jack? THEY WILL RETURN. frank carson rip. 'it's the way i tell 'em' ultra international blackburn rovers olympic rescue. watch and learn kentaro. wez. sofu ltd. (Smiles On Faces Unlimited ) walking in a shearer wonderland
RupertsReason
says...
12:14pm Thu 23 Feb 12
Between_the_lions wrote:What does it matter which set of self centred, truth fabricators gets involved. I seem to remember that a certain Mrs M Thatcher being an Honorary member of the clubs board but whenever the issue of Blackburn becoming a city was ever broached, the town was dismissed, as per. They're all as cringe-worthy as each other when it comes to trying to garner support from the local population. Pun intended!
Now the Liebour Party is involved........ say goodbye to your rovers.
nontetleydrinker
says...
12:20pm Thu 23 Feb 12
Morst The 88th Min Heartbreaker of Dingles! wrote:Hi Derek . Me and Derek have just met for a pint in the postal order and have agreed that we need to find a grand each to support the cause, But the problem is we are both unemployed scroats
What a pity the Walker Trust did not honour Jack Walker's achievements by creating a fans trust instead of selling to Venkys?
.
Perhaps they will now consider getting involved with some support for this initiative and help its transition if the oppotunity arises?
.
33rd....
carlmc
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12:30pm Thu 23 Feb 12
eddie the eagle
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12:51pm Thu 23 Feb 12
Shear_Brilliance
says...
12:58pm Thu 23 Feb 12
stick to football
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1:31pm Thu 23 Feb 12
vic56
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1:40pm Thu 23 Feb 12
vic56
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1:44pm Thu 23 Feb 12
givet82
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2:08pm Thu 23 Feb 12
Daniel Louis Grabko
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2:11pm Thu 23 Feb 12
eddie the eagle wrote:Sprayed coffee all over my desk at this one, Eddie!
It might be possible that Jerome Anderson would come on board as an advisor.The first thing if it came off would be how to get rid of Kean without a pay off,it would be ironic if the fans had to pay him off.
Daniel Louis Grabko
says...
2:14pm Thu 23 Feb 12
stick to football wrote:StF, the Working Group of the BRSIT along with its Chartered Accountants and Legal reps as well as a partnering bank/brokerage would be provided full confidential access to all accounts in the event that actual negotiations began for an acquisition, at which time it would be revealed that actual state of assets and liabilities.
Great idea but who will do due dilligence on the Venkys situation re finance and true liabilities - it will be a bit like the PR as to truth or not sure.
Do you think Venkys would yes or maybe or possibly change their minds and how do you get them to answer a question to start with
Daniel Louis Grabko
says...
2:18pm Thu 23 Feb 12
carlmc wrote:Absolutely spot on, Carl, with one exception.
I think the mechanics of this all sound right. As Daniel has previously posted, the initial funds required is to purchase the club and that will be based on what the current owners demand.
Once this has been done, the trust will then essentially receive all income ie Sky Money, prize money based on league position, Parachute money (Hopefully not) sponsorship money etc. Obviously a full analysis of the club would then be undertaken, as with any business, ie is our income exceeding our outgoings? is our assent base higher than our liabilities? If this is the case then, it will be addressed, perhaps over time.
One huge point mentioned by Daniel, is that we would then no longer have owners taking funds from the club, through the front door or the back door. We all suspect at the minute, certain players have been bought and sold, when it is not in the best interests of the club.
I don't have loads of money, but would be very happy to buy a couple of shares and support the club I love. I can't stand being as detached as I feel under the current regime and longer.
carlmc
says...
2:29pm Thu 23 Feb 12
Daniel Louis Grabko wrote:Excellent stuff Daniel, I admire your tenacity. Count me in for a couple of shares, I will register my interest.
carlmc wrote: I think the mechanics of this all sound right. As Daniel has previously posted, the initial funds required is to purchase the club and that will be based on what the current owners demand. Once this has been done, the trust will then essentially receive all income ie Sky Money, prize money based on league position, Parachute money (Hopefully not) sponsorship money etc. Obviously a full analysis of the club would then be undertaken, as with any business, ie is our income exceeding our outgoings? is our assent base higher than our liabilities? If this is the case then, it will be addressed, perhaps over time. One huge point mentioned by Daniel, is that we would then no longer have owners taking funds from the club, through the front door or the back door. We all suspect at the minute, certain players have been bought and sold, when it is not in the best interests of the club. I don't have loads of money, but would be very happy to buy a couple of shares and support the club I love. I can't stand being as detached as I feel under the current regime and longer.Absolutely spot on, Carl, with one exception. The BRSIT would not receive these moneys, the BRF&A PLC would receive them. Full account and financial result projections based on assumed income and expense levels from extrapolations from previous years' accounts have already been drawn up as a guide, so this is not a blind operation - true contents of the accounts would, as said be revealed during the due diligence process.
dad-jon123
says...
2:34pm Thu 23 Feb 12
dp1978
says...
2:48pm Thu 23 Feb 12
district01
says...
2:58pm Thu 23 Feb 12
Daniel Louis Grabko
says...
2:59pm Thu 23 Feb 12
dp1978 wrote:Hi, dp -
This is getting beyond ridiculous now.
Taken from the BRSIT website... "What happens after £10m ? That is up to the shareholders. Either more funds could be raised via borrowings, share issues or more realistically by sensible and effective management of the income."
Not being funny, but managing 'The Income' is the extent of the business plan that asks for £10,000,000 investment!! Where do i sign up?!?!?
CARover
says...
3:00pm Thu 23 Feb 12
Daniel Louis Grabko
says...
3:08pm Thu 23 Feb 12
bring back the good old days wrote:As a direct answer to your question, no, it could not be any worse :)
Daniel Louis Grabko wrote:Dan,
bring back the good old days wrote:bb god -
Daniel Louis Grabko wrote:Dan, isn't this the crux of the issue i.e. potential 'owners' going to the banks/financial institutions for a loan to actually buy the club.
midas wrote:Understand your point, Midas, but how much of that was a cash outlay? (I have no idea, haven't looked it up)
Put £10 million into context. TSI paid £25 million for 51% of Reading!
In the case of Venkys, they paid 17.17 pence for each share, totaling £23m and assumed the debt of the Club at that time, which was approx. £20m, for a total reported purchase price of £43m. It is also reported that Venkys didn't actually pay any cash for the club, but borrowed what they needed in cash.
Readings extrapolated £50m value, and that in the Championship, shows you that it is very difficult to compare the assessment of value between different clubs, and there are many many factors to take into consideration.
Yes, all businesses run along these lines of 'loans', but with the debacles of previous takeovers scattered around and within football wouldn't you think someone would have by now put some proper guidelines down.
What the supporters are wondering is why can't we/the consortium do similar? I know the answer is you have to have some sizeable capital asset to 'back it up', but although Venkys claimed to have, it seems to us that they have not used any, instead it appears they have 'pillaged' the club to satisfy the debt.
Please note I say 'appears' as that is what it is looking like from the outside.
This is absolutely a major point - the BRSIT and any potential partners out there that might want to join forces with it absolutely will not want to actually increase the debt of the Club through any acquisition process.
It is of course resigned to the fact that taking on whatever current debt is there is a forgone conclusion, the bank must be paid. But a debt acquisition is just not an option as the BRSIT would never condone putting substantial new debt on the Club's shoulders.
But that is my point.
There is obviously much consternation that no matter how hard we try, is it feasible we are going to be able to raise the required monies.
If the answer is no, it would appear to be doomed to failure.
However, to bolster the bid it may well be that a loan would achieve the required finance in order to make a bid.
As anyone considered approaching the Walker family to ask if they would be prepared to 'stand' this loan. This, much in the same way the Trust acted in the past. It was my understanding that Jack left the edict that only interest upon the cash asset of 300mil could be used to finance the club.
There would be achartes between BRSIT and Walkers that would pledge to honour this debt within a given period.
In this period if assets had to be sold in order to honour it, so be it.
Could this be any worse than what we have now?
makaveli96
says...
3:45pm Thu 23 Feb 12
Tatts
says...
3:47pm Thu 23 Feb 12
gudari
says...
3:59pm Thu 23 Feb 12
Come the Revolution
says...
4:22pm Thu 23 Feb 12
notchuffed
says...
5:01pm Thu 23 Feb 12
pm1960
says...
5:09pm Thu 23 Feb 12
RupertsReason wrote:At least Jack Straw actually goes to many Rovers games and has the Club at heart. How many games did Mrs T go to ??
Between_the_lions wrote: Now the Liebour Party is involved........ say goodbye to your rovers.What does it matter which set of self centred, truth fabricators gets involved. I seem to remember that a certain Mrs M Thatcher being an Honorary member of the clubs board but whenever the issue of Blackburn becoming a city was ever broached, the town was dismissed, as per. They're all as cringe-worthy as each other when it comes to trying to garner support from the local population. Pun intended!
pm1960
says...
5:15pm Thu 23 Feb 12
dad-jon123 wrote:Unfortunately you are wrong dad-jon. Jack Straw hasn't 'jumped on the bandwagon' at all. He's been going to Rovers games since he became MP for Blackburn and has consistently voiced disquiet about the Venky's running of the Club. As has Graham Jones too.
Why is l.e.t not asking Keans opinion on the takeover they never ask questions like why Mr Straw are you jumping on the bandwagon not heard a mutter out of him on the venkys.Only one Graham Jones now he his a mp .
forever blue and white
says...
5:59pm Thu 23 Feb 12
Arthur Labore
says...
6:02pm Thu 23 Feb 12
district01
says...
6:52pm Thu 23 Feb 12
pm1960 wrote:Stop wriggling and face the facts.
dad-jon123 wrote:Unfortunately you are wrong dad-jon. Jack Straw hasn't 'jumped on the bandwagon' at all. He's been going to Rovers games since he became MP for Blackburn and has consistently voiced disquiet about the Venky's running of the Club. As has Graham Jones too.
Why is l.e.t not asking Keans opinion on the takeover they never ask questions like why Mr Straw are you jumping on the bandwagon not heard a mutter out of him on the venkys.Only one Graham Jones now he his a mp .
*
Well done Jack Straw & Graham Jones.
craftandgraft
says...
6:53pm Thu 23 Feb 12
whittaker0
says...
7:42pm Thu 23 Feb 12
pm1960 wrote:Mrs Thatcher was personally invited to become Hon.Vice President by Jack Walker. Jack Walker thought the world of her and this was very much against the wishes of the then board and in particular my good friend Bill Fox. There was no suggestion of any promises or favours anyway and it would be farcical to consider Blackburn becoming a city ahead say of Preston.
RupertsReason wrote:At least Jack Straw actually goes to many Rovers games and has the Club at heart. How many games did Mrs T go to ??
Between_the_lions wrote: Now the Liebour Party is involved........ say goodbye to your rovers.What does it matter which set of self centred, truth fabricators gets involved. I seem to remember that a certain Mrs M Thatcher being an Honorary member of the clubs board but whenever the issue of Blackburn becoming a city was ever broached, the town was dismissed, as per. They're all as cringe-worthy as each other when it comes to trying to garner support from the local population. Pun intended!
She hated football.
craftandgraft
says...
7:50pm Thu 23 Feb 12
Reg Rover
says...
8:48pm Thu 23 Feb 12
forever blue and white
says...
8:48pm Thu 23 Feb 12
district01 wrote:District01 you have just highlighted my point above perfectly well. Thank you.
pm1960 wrote:Stop wriggling and face the facts.
dad-jon123 wrote:Unfortunately you are wrong dad-jon. Jack Straw hasn't 'jumped on the bandwagon' at all. He's been going to Rovers games since he became MP for Blackburn and has consistently voiced disquiet about the Venky's running of the Club. As has Graham Jones too.
Why is l.e.t not asking Keans opinion on the takeover they never ask questions like why Mr Straw are you jumping on the bandwagon not heard a mutter out of him on the venkys.Only one Graham Jones now he his a mp .
*
Well done Jack Straw & Graham Jones.
You’ve been caught by the master political vote catcher who is forever trumpeting his political deeds. He’ll be telling you next he had nothing to do with Tony Blair’s illegal invasion of Iraq where thousands of innocents died as well as our own and you‘ll probably be believing him!
Jack Straw column 28.10.2010:
If the Venky’s deal for Rovers passes the remaining hurdles, then in my view it will be good news for the club and its loyal fans.
And it may too have the bonus of encouraging a trend already there, of seeing many more folk of Asian heritage at Ewood Park.
Which way is the wind blowing now Jack?
Reg Rover
says...
8:51pm Thu 23 Feb 12
Reg Rover
says...
8:55pm Thu 23 Feb 12
Reg Rover
says...
8:58pm Thu 23 Feb 12
gudari
says...
9:19pm Thu 23 Feb 12
Reg Rover wrote:Well said Reg. Obviously I have my own answers to your questions but I'll keep them to myself here. Hats off to you!
ARE BURNLEY NOW A BETTER CLUB THAN BLACKBURN ROVERS?
The question that all Rovers fans feared would happen, “are Burnley now a better club than Blackburn”?
Probably, they are certainly better run with Chairman Barry Kilby at the helm, they have a better manager in the up and coming Eddie Howe, their finances are stable and well managed.
Their team is probably better than Rovers and they could be heading back to the premiership via the play-offs and replacing Rovers. That would just about cap a nightmare season for all Rovers supporters, certainly the worst season I have experienced both on and off the field since first watching Rovers in 1957.
The news that the excellent Barry Kilby is battling cancer and will be standing down as Burnley chairman is very sad and we all wish him well.
Kilby, in a BBC1 TV interview last week, stated his love for the club and the people of Burnley, going on to say that the traditions of Burnley FC will be maintained and under no circumstances would ever pass into the hands of foreign ownership.
Watching the interview, Kilby reminded me very much of the late Jack Walker with his views and sentiments.
Pity the Walker Trust were not of the same mind when selling Rovers to the Venky’s.
Reg
FCBurnley
says...
9:20pm Thu 23 Feb 12
kiwipom73
says...
11:03pm Thu 23 Feb 12
craftandgraft
says...
1:41am Fri 24 Feb 12
bypass06
says...
3:25am Fri 24 Feb 12
icannotrace
says...
7:31am Fri 24 Feb 12
Robbie wrote:I hope this is a joke?
sorry.. also
would it not be a better idea to say... for 1 share its a minium donation of 1k... fans who can afford to pay 1.5k,10k etc may offer more.. meaning more money is raised?
Dan11
says...
8:04am Fri 24 Feb 12
Dan11
says...
8:05am Fri 24 Feb 12
gazzandste
says...
11:38am Fri 24 Feb 12
god Im bored
says...
5:30pm Fri 24 Feb 12
lancs1985
says...
4:01pm Sat 25 Feb 12
lancs1985
says...
4:01pm Sat 25 Feb 12
bankhall
says...
12:34pm Tue 28 Feb 12
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Morst The 88th Min Heartbreaker of Dingles! says...
8:38am Thu 23 Feb 12
.
But good luck guys - I hope you can raise enough to at least be in a position to act as a fans club owned group at the appropriate time in the future.
.
Long way to go though.
.
33rd......