Blackburn Rovers’ chief executive Steve Waggott has assured supporters of the stability of the club’s financial situation.

The sale of Adam Armstrong to Southampton in the summer of 2021 has helped Rovers to comply with the EFL’s financial regulations for the coming year.

The sale of the club’s Senior Training Centre has also helped to avoid any kind of embargo or financial penalty for this season, despite Blackburn continuing to suffer a deficit.

Waggott has cited continuing costs across the club as a big reason for the importance of player trading in the transfer market.

While ticketing has brought in an increase in revenue, this has not been enough to offset the current cost of running Blackburn.

The CEO has claimed that the maintaining of a Category One academy has proven an expensive endeavour but that he remains committed to bringing through young stars into the first team squad.

“We’re okay for this year,” said Waggott, via the Lancashire Telegraph.

“We have to be careful with what fans want, which I get, because they want competitive ticket pricing, beer to be discounted, food not too expensive, but a successful team on the pitch and a Category One Academy coming through.

“All of that adds up to a number, and we have to be P&S [Profit & Sustainability] compliant.

“It’s delicate, and it has to be a balanced view of how we operate, understanding the socio-economic climate we’re in, but working alongside the owners who have been absolutely steadfast, right through Covid, the economic climate and what’s gone on in the world.

“They have been steadfast.

“We’re trying to develop a competitive, but Jon has been brought in, Gregg as well, and looking to accelerate the pathway and an asset base.

“My first game was at Northampton five years ago and if you look at the profile of that squad to the profile now, the value of the asset base is quite interesting.”

Blackburn are currently 3rd in the Championship table, just two points adrift of the automatic promotion places.

Jon Dahl Tomasson’s side returns to action on 10 December when they face Preston  North End at Ewood Park.

The Verdict

Maintaining a healthy balance sheet in the second division has proven incredibly difficult for many clubs.

The desire to get into the Premier League has seen a lot of teams gamble on heavy spending in order to gain promotion, but that has not always succeeded, leading to a lot of financial pain in the long run.

Blackburn needs to avoid those kinds of mistakes while still being competitive, having seen in the past what can happen with a difficult financial situation.

Maintaining the academy is a point of pride for the club, so accounting for that may hurt the club in the transfer window in the short-run but could prove very valuable over the long-run.