ALK Capital or Farnell/Elkashashy takeover

[mill hill claret]

Sheff united ?

[Nonayforever]

Back in the old Teasdale days the articles of association insisted that you had a minimum of 100 shares to be a director. I don't think that's been removed, in fact I think it's been increased by a significant number.

700 ?

[FactualFrank]

'Burnley F.C is a Premier League football club from the town of Burnley in East Lancashire. Founded in 1892, it
was one of the first to turn professional in 1893, the same year the club moved to its home ground, Turf Moor,
making it the second-longest continuously used stadium in English professional football.'

Those dates aren't right are they? Also, who has the longest continuously used stadium? Good quiz question...

Deepdale I think is the longest.

[OffTheBar]

That was always going to happen. I think you will find he’s retaining some of his shares to enable him to do so.

Seems possible, though the press release does call them “former” shareholders.

[jedi_master]

I wonder if the clubs YouTube channel might have an interview up tomorrow with Alan?

I think that would be a great start to a (hopefully) transparent relationship with the fans if an interview along the lines of what they put out with Neil Hart recently was put up.

[Steddyman]

That was always going to happen. I think you will find he’s retaining some of his shares to enable him to do so.

Interesting. I wonder who elses shares they are buying to get to 84%. MG and JB alone don't make that much, and if they are holding onto a shareholding, then somebody else must be ponying up at least 10%.

[Nonayforever]

Interesting. I wonder who elses shares they are buying to get to 84%. MG and JB alone don't make that much, and if they are holding onto a shareholding, then somebody else must be ponying up at least 10%.

JB has sold all his shares, MG is retaining some.

[Paul Waine]

Garlick staying on as a director. I’m sure Sean will be delighted.

Transition management. Maybe some performance targets towards the final price for shares. I'd expect MG and JB to step down either (a) end of season or (b) end of 2021. Just my guess from knowledge of many other corporate takeovers.

Exciting times.

UTC

[Paul Waine]

Just announced on the ALK website

https://alkcapital.com/news-media/

UTC

Is the press release still on ALK website? I can't see it? Of course, that may just be me.

Or, it it get put a little early?

Or, been taken down to have typos corrected?

Exciting times.

UTC

EDIT: Yes, by reading all the posts on the previous page I see it wasn't just me missing the presser.

[Chester Perry]

Those notes aren’t at 10%, and were issued in October.

Taking on some debt is not a problem; we are going to have to fund transfers somehow if we are to move on up.

It’s hardly news that a private equity company would use debt. It doesn’t mean it is being used for the acquisition either.

The point was that the borrowing won't be cheap as i have pointed out a number of times - I am not the only one who thinks this - it is likely to be a double figure interest rate

https://twitter.com/vysyble/status/1344393757307899904

[NewClaret]

Is the press release still on ALK website? I can't see it? Of course, that may just be me.

Or, it it get put a little early?

Or, been taken down to have typos corrected?

Exciting times.

UTC

No, taken down mate. Released too early is my guess.

[aggi]

Back in the old Teasdale days the articles of association insisted that you had a minimum of 100 shares to be a director. I don't think that's been removed, in fact I think it's been increased by a significant number.

4,000 shares now. If you look at the shareholdings (at least as they were) then most of the directors had just 4,000 except for Garlick and John B.

[Cirrus_Minor]

Just to add.......exciting times. UTC.

Well let’s hope so.

But whilst many jump about like exited school girls I also remain in hope but will watch nervously through my fingers.

[NewClaret]

The point was that the borrowing won't be cheap as i have pointed out a number of times - I am not the only one who thinks this - it is likely to be a double figure interest rate

https://twitter.com/vysyble/status/1344393757307899904

Nobody knows how much or how long for yet. The interest rate is only relevant if it’s a lot for a long time.

[Peter Loo]

Is the press release still on ALK website? I can't see it? Of course, that may just be me.

Or, it it get put a little early?

Or, been taken down to have typos corrected?

Exciting times.

UTC

Your right nothing on the ALK website about a takeover.

[Chester Perry]

Transition management. Maybe some performance targets towards the final price for shares. I'd expect MG and JB to step down either (a) end of season or (b) end of 2021. Just my guess from knowledge of many other corporate takeovers.

Exciting times.

UTC

there is a lot for Pace to learn about those Premier League meetings - so much depends on relationships - inside knowledge and connections are vital for our club in there

[OffTheBar]

The point was that the borrowing won't be cheap as i have pointed out a number of times - I am not the only one who thinks this - it is likely to be a double figure interest rate

https://twitter.com/vysyble/status/1344393757307899904

Don’t necessarily disagree; was mainly to say I think it may be related to something else and the tweet was perhaps a little sensationalist with the 10%! But even at relatively high rates, I would hope the new owners would be able to generate a greater increase in revenue than the few million in interest it would cost pa.

[NewClaret]

'Burnley F.C is a Premier League football club from the town of Burnley in East Lancashire. Founded in 1892, it
was one of the first to turn professional in 1893, the same year the club moved to its home ground, Turf Moor,
making it the second-longest continuously used stadium in English professional football.'

Those dates aren't right are they? Also, who has the longest continuously used stadium? Good quiz question...

Is it Villa Park?

[kaptin1]

Is it Villa Park?

Oakwell

[aggi]

Interesting. I wonder who elses shares they are buying to get to 84%. MG and JB alone don't make that much, and if they are holding onto a shareholding, then somebody else must be ponying up at least 10%.

4,000 shares makes up about 3.25% of the shares and about 6% are held by a random selection of small shareholdings.

If John B and Garlick are staying on as directors then I would guess that one existing director is keeping hold of their shares and the rest have sold up. Kilby or Flood would be my total guess.

[aggi]

there is a lot for Pace to learn about those Premier League meetings - so much depends on relationships - inside knowledge and connections are vital for our club in there

I seem to remember Garlick is also quite influential in the Premier League setup.

[ClaretTony]

4,000 shares makes up about 3.25% of the shares and about 6% are held by a random selection of small shareholdings.

If John B and Garlick are staying on as directors then I would guess that one existing director is keeping hold of their shares and the rest have sold up. Kilby or Flood would be my total guess.

I mentioned the minimum number of shares to be a director having increased from 100. I am sure someone told me it was 4,000 and that now fits in if it is 3.25% because we have five directors - Kilby, Holt, Nelson, Crabb & Flood with approximately 16% of the shareholding between them which is just about 3.25% x 5. I suspect those five have all sold all of their shareholding with Garlick & John B retaining the rest which would be about 10%.

[Nonayforever]

4,000 shares makes up about 3.25% of the shares and about 6% are held by a random selection of small shareholdings.

If John B and Garlick are staying on as directors then I would guess that one existing director is keeping hold of their shares and the rest have sold up. Kilby or Flood would be my total guess.

The press release says " former shareholders MG & JB "

If that's the case then there would be 3 shareholders at 4,000 shares.

[Paul Waine]

Welcome to Turf Moor and Burnley Football Club, Alan Pace and all at ALK Capital.

Looking forward to the next chapter in Burnley's story.

Exciting times.

UTC

EDIT Dare to Dream - I'm off to bed.

[ClaretTony]

there is a lot for Pace to learn about those Premier League meetings - so much depends on relationships - inside knowledge and connections are vital for our club in there

If you recall, Barry Kilby retained Frank Teasdale as a director for around a year when he took over. It enabled Barry to become familiar with Football League meetings etc. Mike Garlick and Neil Hart will attend them on our behalf and Garlick will have been doing so for a few years which is experience you can't pick up immediately. I'd expect him to be remain involved in that side of things, certainly while Pace gets up to speed.

[FactualFrank]

Transition management. Maybe some performance targets towards the final price for shares. I'd expect MG and JB to step down either (a) end of season or (b) end of 2021. Just my guess from knowledge of many other corporate takeovers.

Transition is the keyword. It allows them to let the new owners slowly learn the ropes and settle in.

[Nonayforever]

The way around MG & JB being a director without a shareholding is that they could become directors of VSP the holding company.

[ClaretTony]

The way around MG & JB being a director without a shareholding is that they could become directors of VSP the holding company.

I think you will find they will be retaining shares

[Chester Perry]

I seem to remember Garlick is also quite influential in the Premier League setup.

he is in his 6th season in there that makes him known and one of the few who has had a chance to build proper relationships - not many of the 14 have been there that long

[Nonayforever]

I think you will find they will be retaining shares

But the press release states " former shareholders"

[holycustard]

which ones Alan Pace and wheres Donald Trump and Mike Pence
https://www.pendletoday.co.uk/sport/foo ... ed-3082105

[Chester Perry]

which ones Alan Pace and wheres Donald Trump and Mike Pence
https://www.pendletoday.co.uk/sport/foo ... ed-3082105

all lifted from this thread it looks like

[ClaretTony]

But the press release states " former shareholders"

Yes it does, we will see what that means but I suspect MG & JB will have retained a shareholding.

[DCWat]

Article on The Athletic now

[ClaretTony]

Article on The Athletic now

It is all done and dusted - and just about on the day I suggested last week but it was close.

[Somethingfishy]

The Mail reckons it is £170M

[FactualFrank]

Article on The Athletic now

Copy and paste please.

[Somethingfishy]

LET saying £200M...some guesswork going on here methinks.

[Chester Perry]

From the Athletic

ALK Capital complete Burnley takeover worth around £200m
31 December 2020Updated 00:18 GMT

ALK Capital have completed their takeover of Burnley, reports Andy Jones.

The group, headed by Alan Pace, have been in discussions for 14 months and now have taken control of the north west club.

Who are ALK Capital?
ALK Capital are a sports investment firm, headed by managing director Pace.

Pace is a former managing director at Lehman Brothers, before joining Major Soccer League Team Real Salt Lake between 2006 and 2008 where he was president. He returned to the banking world, spending more than a decade with leading bank Citi.

The group attempted to buy Sheffield United in 2019. They have also invested in player recruitment technology products AiScout and PlayerLens.

ALK worked hard throughout Christmas to try and get the deal over the line. There was some hope the deal may be done before the game against Leeds on December 27, but that came too soon.

They were confident of being in place before the game against Fulham (January, 3) with a few documents still to be completed on the day of the win against Sheffield United (December 29).

Pace, who will become chairman, arrived back in the UK earlier this week to finalise the deal. He will be hands-on and the ultimate decision-maker at the club, moving to Lancashire to oversee day-to-day operations.

What has been said?
Pace has said the acquisition is “the start of an exciting journey for the entire Clarets family”.

“Today marks a new era for Burnley as we become stewards of this historic football club and build on the impressive work that Mike Garlick, Sean Dyche and everyone at Burnley has done to make it a financially stable, established Premier League club that is a cornerstone of the local community,” he said.

“With a rich heritage, a brilliant academy, and a passionate fan base, this club has solid foundations to build upon.”

Why did previous owner Mike Garlick want to sell?
Mike Garlick initially joined the Burnley board in 2006 before taking on the role of co-chairman alongside John Banaszkiewicz, before becoming sole chairman in 2015.

During his time as chairman, Burnley have progressed both on and off the pitch. Under Sean Dyche they have achieved two promotions to the Premier League, qualified for a first European campaign for 51 years and are currently involved in their fifth consecutive season in the top flight.

Off the pitch, Burnley have made major strides too. They posted a profit for the last three consecutive financial years including a record profit of £36.6 million for the 2017-18 season. Under Garlick, the club also built the £10.7 million Barnfield Training Centre which opened in 2017, a lasting legacy for his reign. He has run the club in a healthy and sustainable way.

The transfer market has been the area where Burnley have fallen behind in recent years, though. Dyche has spoken openly about the need to stretch the club financially but with market inflation, Garlick has been unable to invest significant money to help the club take steps forward in the transfer market in recent windows including this summer where the club spent just over £2 million. He has taken Burnley as far as he can.

Why has the takeover taken so long?
Burnley have been in discussions with ALK for around 14 months as they have looked to strike a deal which is around £200 million. The COVID-19 pandemic certainly didn’t help the situation earlier this year with clubs hit by financial uncertainty and talks unable to be held face-to-face.

They were also not the only party interested as an Egyptian-based group led by Mohamed El Kashashy and Chris Farnell tabled a rival bid. They pulled out of talks last week after not hearing from Garlick for a month and a half.

ALK’s hope was to be in place way before for the January transfer window but as talks continued, the aim became to be in place before it began or as early into the month as possible.

Talks intensified in recent weeks and heading into Christmas, talks were at an advanced stage, with legal sign off and Premier League approval required and a few documents still to complete. That is all now done.

What does this mean for Burnley’s future and the January transfer window?
This is an important step forward for Burnley's future with the hope that this takeover can take them to the next level and allow them to compete better financially with fellow Premier League clubs.

During talks with the club, Pace had discussions about future recruitment plans. There will not be a huge injection of funds for the window but ALK want to invest to help flesh out and improve the thin squad Dyche has been working with. Burnley are lacking depth at centre back and out wide.

Now they are in control, ALK will be speaking to Dyche as soon as they can to align transfer plans for the window. There was no contact between the group and the manager before the takeover was completed.

[FactualFrank]

Cheers CP.

[ClaretTony]

I've just spoken with Andy at the Athletic. Good lad, even if he isn't a Claret.

[DCWat]

I've just spoken with Andy at the Athletic. Good lad, even if he isn't a Claret.

I’m looking forward to hearing what Pace has to say and what his plans are.

[BenWickes]

Finally done. I'm not in the slightest bit worried about this takeover.
I maintain that fans are going to be pleasantly surprised by the way we will be going as a club and their plans on and off the field.

UTC!

[Jimmymaccer]

Change always bring a degree of uncertainty but BFC is a business which has lacked investment in certain areas and needs fresh ideas from a commercial perspective. Clarets are realists unlike many others.....we don’t expect Galacticos on the pitch and want the club to remain at the heart of the town......

But exciting times ahead................

Happy New Year all.....let’s hope 2021 leaves 2020 we’ll behind us...........keep safe meantime!

[Burnley1989]

Finally done. I'm not in the slightest bit worried about this takeover.
I maintain that fans are going to be pleasantly surprised by the way we will be going as a club and their plans on and off the field.

UTC!

Same, There’s no point worrying about something before you have the facts, it’s actually unhealthy. Positive vibes only

[clarethomer]

Wonder if we will get any more insight from certain posters on here now that the deal has been concluded?

[burnmark]

BBC article

https://www.bbc.co.uk/sport/football/55495853

[Firthy]

I very much doubt that ALK will buy a club like Burnley to run it into the ground and with the relationship between Garlick and SD apparently not great then things can only get better. Only time will tell but I'm cautiously optimistic about this.

[BurnleyFC]

Is it Villa Park?

I might be wrong, but I thought it was Deepdale.

[SonofPog]

Well let’s hope so.

But whilst many jump about like exited school girls I also remain in hope but will watch nervously through my fingers.

This for me... We were doing okay. Now we're just like the rest. Potentially saddled in debt, owned by America, used as a vehicle to prove that their scouting tools work.

We're never going to be top 6, is selling our soul worth it for a few more places higher up in the league?

You can repeat "exciting times" over and over again, until you convince yourself, for me, its a sad time... and another nail in the coffin of my interest of football.