'Significant doubt' Leeds United's promotion rivals issued with alarming warning over future

Leeds United's Championship promotion rivals Blackburn Rovers are facing a difficult financial future if legal issues in the owners' native India are not resolved.

The former Premier League champions submitted club accounts this week, in which Blackburn director Jitendra Desai wrote "a material uncertainty exists" over the club's ability to continue operating. The accounts submitted by Blackburn's parent company, Venky's London Limited, showed a £1.8million profit for the last financial year ending March 2024.

The fact the club registered a profit was due to £22.9m in player sales with the likes of Adam Wharton, Thomas Kaminski and Ash Phillips sold. Without the player sales the club would have registered a loss similar to the £21m loss reported 12 months ago.

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Those figures are nothing new for Championship clubs who often lose far more money, but the financial report highlighted the problems Venkys are experiencing in India. The Directorate of Enforcement in India have banned the Venkys' parent company from transferring money overseas and as such they are unable to bankroll Rovers with the current ban in place.

The Directorate of Enforcement did allowed Venkys to make two payments of £3.5m and £11m to Blackburn in 2023 after they pleaded for an exception to help keep the club afloat, but no such payments have been allowed since. Blackburn's account auditors also issued a similar wanting in the accounts, saying; "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."

The team continue to do their part on the pitch with the club currently ninth in the Championship table, but just a win off a plat-off position. Blackburn host Leeds United at Ewood Park on Saturday November 30, with a 1:30pm kick-off for the game.