Steve Waggott and Venky’s clashed over Blackburn Rovers investment offer before CEO’s exit

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Blackburn Rovers pulled funding for their women’s teams despite the Venky’s ownership group having personally rejected an offer of external investment last season, EFL Analysis can exclusively reveal.

Even by their standards, it has been a turbulent few days for Blackburn Rovers.

News that the EFL club was withdrawing the funding necessary for the women’s team to compete in the WSL 2 on Tuesday has been followed today with the departure of Steve Waggott as Blackburn CEO.

Waggott was deeply unpopular among the fanbase at Ewood Park but his exit, which was announced with a prosaic two-sentence statement at 11.00am, has come as a shock.

The 70-year-old had been considering retirement and Blackburn’s 2023-24 financial statements showed increased pension contributions from the club, indicating that the CEO was getting his affairs in order.

That said, EFL Analysis understands that Waggott had indicated that he would stay on for at least another season.

The tone of the statement meanwhile does not suggest that the former Coventry, Charlton and Gillingham executive’s exit was planned in advance.

It is not known whether the situation with the women’s team and the backlash from supporters, champions of the women’s game and the national press has led directly to his fall.

The latest details, however, shed some light on Waggott’s role in the saga.

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Steve Waggott was keen for investment in women’s team but Venky’s overruled him

It’s a fact that most of women’s football loses money – but not nearly as much money as the men’s game, where the numbers in the Championship in particular simply don’t add up.

Blackburn Rovers have lost £204.4m since Indian poultry firm Venky’s took over from the Jack Walker Trust in 2010. By contrast, the women’s team reported a loss of £937,000 in the last financial year.

The men’s team turned a profit but only because of the sale of academy product Adam Wharton to Crystal Palace for £20m, as well as the seven-figure fees they recouped for Ash Philips and Thomas Kaminski.

The underlying numbers paint a much bleaker picture, albeit one that is not at all uncommon in the Championship. Their operating losses totalled £19.5m.

One would think, therefore, that the club’s owners would be open to external investment in the women’s team, especially after they retained their WSL 2 status last season despite having the league’s smallest budget.

EFL Analysis understands that Steve Waggott held talks with a specialist women’s football investment group last season about a potential deal that would have seen them acquire equity in the women’s team.

Waggott himself is said to have been keen on the proposal.

However, sources directly involved in the discussions say that the Venky’s vetoed it due to fears that external investment in the women’s but not the men’s team could spark a backlash among fans.

Now, Blackburn’s women’s team has been administratively relegated from WSL 2.

Players were due to find out about the decision online until head coach Simon Parker took it upon himself to pre-emptively inform his team of the club’s decision.

The Venky’s decision to reject investment the previous season – seemingly for no reason other than optics – will sting even more as a result.

“The growing financial and operational constraints tied to Tier 2 status, including the requirement to move to a fully-professional model, have reached a point where they can no longer be sustained under the club’s current financial framework,” the club wrote in its official statement.

“Key factors influencing this decision include the significant rise in minimum criteria set by the league, including extended contact hours for players and the requirement for a full-time professional contract model, an increase in staffing levels, leading to further escalating wage costs, and a greater strain on training ground and stadium facilities.”

Have Venky’s received offers for Blackburn Rovers takeover?

In March, EFL Analysis exclusively reported that Venky’s were not actively looking to sell Blackburn Rovers.

Sources said that the company had not invited offers for the club and were happy to continue to maintain their passive benefactor model.

That was confirmed in a rare sit-down interview with Waggott, COO Suhail Pasha and director of football Rudy Gestede in April.

Reading, who have since been taken over by US investor Rob Couhig, and Sheffield Wednesday, who are attracting interest from Saudi Arabia, were at that point seen as more attractive prospects within the football finance industry.

Under John Eustace and later Valerian Ismael, Blackburn exceeded expectations in the Championship in 2024-25, finishing two points outside the play-offs.

On the final day, they were in the top six for nine minutes. It is the second time in three seasons they have just fallen short, though 2023-24 saw them survive relegation on the final day.