Venky's controversial reign at relegated Blackburn Rovers is under renewed scrutiny following the emergence of an extraordinary letter from the club's deputy chief executive that urges the owners to sack Steve Kean as manager, settle a £10m debt to avoid the threat of administration and lays bare the dysfunctional relationship between the owners and the club's board.
The letter, from the deputy chief executive, Paul Hunt, to the Rovers co-owner Anuradha Desai and dated 21 December 2011, delivers the prescient warning that Blackburn are heading for relegation under Kean – an outcome confirmed by defeat by Wigan Athletic on Monday night – and risk being foreclosed by the banks or HMRC. Hunt feared that he and his fellow directors could lose their homes should Rovers enter administration.
Venky's have since settled their entire overdraft with Barclays and have no outstanding debt with that bank but failed to heed much of Hunt's advice. The former commercial director at Leicester City has led the executive team at Ewood Park since June 2011 following the departures of the long-serving former chairman John Williams and managing director Tom Finn.
Hunt's letter outlines the extent of the distance and disharmony between the India-based owners and the executive team at Ewood Park and illustrates why Rovers supporters have been so vociferous in their protests against the poultry giant and the manager Kean. The letter was revealed on Tuesday on the website sportingintelligence.com.
In a 10-point plan proposing "significant changes to save the club, perhaps from relegation but also perhaps from administration", Hunt requests:
• His promotion to CEO to avoid confusing staff, supporters and media, including a modest increase in salary. "I am currently the lowest paid senior club official in the Premier League," he writes.
• A £10m loan from Venky's as Barclays are "very quickly losing patience as we cannot give answers". He also states: "The position with the finances is a cause for grave concern. Auditors KPMG have put as many obstacles as they can in the way of signing off the accounts due to their concerns." Money is also required in January 2012 to pay players' wages.
• A change of manager who, Hunt claims, has lost the crowd and the dressing room. The letter is dated the day after Blackburn's 2-1 home defeat by fellow strugglers Bolton Wanderers when supporters' criticism of Kean reached its height.
• That the executive team at Blackburn receive authority to run the club and greater trust from the owners in India. "With our fiduciary responsibilities as directors, if the club goes under, the directors (including Vineeth [Rao], Mahesh [Gupta] and Gandhi Babu) are all potentially personally liable for that failing and the courts could take our houses from us. My family do not deserve this."
• An end to public statements being issued by Venky's in India and not from Blackburn.
• Regular visits to meet the owners in India. Six months after his appointment as deputy CEO, Hunt reveals, he has not met Desai.
• At least one representative of Venky's turn up for "at least a quarter of games". The Indian owners have rarely been seen at Ewood Park in the past 12 months and were absent when Blackburn's relegation was confirmed against Wigan.
• Responsibility to "hire and fire staff", naming a club executive who Hunt says "is against the owners and spreads the word wherever he can".
• Action be taken to prevent the club "losing sponsors and suppliers". Hunt claims an £800,000 a year contract with Umbro is in jeopardy due to the manufacture of Rovers shirts in India and that "the Blackburn Rovers and Venky's brands are both suffering terribly".
The Guardian has not received a response from Hunt or Venky's on the contents of the letter.
Venky's purchased Rovers from the Walker family trust in a £44m deal in November 2010 and the club's fortunes have subsequently plummeted, with the defeat on Monday sealing relegation from the Premier League for the first time in 11 years. Kean rejected calls for his resignation following the defeat and despite the evidence of a dismal campaign, a run of seven losses in the last eight matches and mass protests against his reign from Rovers' suffering supporters, claimed he retained Venky's backing and could oversee immediate promotion next season.
Kean is a client of the SEM sports agency, who advised Venky's on its takeover, and refused to apportion blame on the owners for relegation. Instead, he called on them to ensure the bulk of the Blackburn squad remains intact for next season and is enhanced by "one or two experienced players", even though he defended the departures of Ryan Nelsen, Chris Samba and Jason Roberts. Michel Salgado has not played this year as the club seeks to avoid handing the former Real Madrid defender an automatic 12-month extension to his contract.
The manager's rebuilding plans appear optimistic at best. Junior Hoilett is out of contract this summer and has been linked with Arsenal and Bayern Munich, while doubts surround the futures of Steven Nzonzi, Gaël Givet and Paul Robinson among others.
