The wait is over - ALK Capital buy Burnley FC

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RVclaret
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Re: Selling our soul

Post by RVclaret » Thu Dec 31, 2020 2:13 pm

dandeclaret wrote:
Thu Dec 31, 2020 1:26 pm
They weren't "Doing nothing" though.

In the last 5 years, there's investment in the first team to a level allowing for 2 top 10 finishes. There's a brand new training ground. There's a category 1 academy to allow for future revenue streams into the business. They have updated the disabled facilities. They have invested into the foundations of the scouting network.

So they were moving forward, with a focus on improving the things they felt needed improving. They may have stood still for the last 10 months, but that would be a success compared to most businesses who have gone backwards. Even big clubs like Barcelona and Inter are reporting huge, unsustainable losses. The plan at Burnley has given sustainability even through this. What it didn't allow was for the yearly addition of 1 player for the first team squad.

Expansion that is too quick with no clear strategy, in a business area with a 30-40% chance of losing your main income stream is very risky, and why so many football clubs just fall through the leagues from the Prem all the way to the bottom.
Nail on the head! Most football fans (on this board too) do not grasp this.
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Re: Selling our soul

Post by KRBFC » Thu Dec 31, 2020 2:13 pm

Vegas Claret wrote:
Thu Dec 31, 2020 2:08 pm
top 2 are both US owned :lol:
Yup :D

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Re: Selling our soul

Post by Jeffbfc » Thu Dec 31, 2020 2:15 pm

Venkys4eva wrote:
Thu Dec 31, 2020 1:26 pm
Local club run by local people... very league of gentlemen
Quick Tubbs save the special things!!!!!
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Re: Selling our soul

Post by Clarets4me » Thu Dec 31, 2020 2:31 pm

Claretmisterg wrote:
Thu Dec 31, 2020 12:49 pm
Having all local players went out when professional players came in in the 19th century. Having local managers/coaches soon went the same way. Having local ownership persisted the longest but foreign ownership is now the norm at the level we want to play. In order to compete at this level we must follow the trend.
The Preston North End " Invincibles " that went undefeated for the first ever League season in 1888-89, were comprised of a majority of Scotsmen, and the first ever Liverpool team to play a League fixture was composed entirely of Scots ..... It was forever thus ! ;)

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Spijed » Thu Dec 31, 2020 2:38 pm

What happens if SD voices his concerns about player budgets, like he has done on a number of occasions?

Many foreign owners have taken exception to this at various clubs due to different disagreements and before you know it, the manager gets sacked.

I just hope our new owners are aware of the need to keep our best manager in decades regardless of any difference of opinion.

Rovers got rid of Big Sam.....

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Re: The wait is over - ALK Capital buy Burnley FC

Post by claptrappers_union » Thu Dec 31, 2020 2:44 pm

Sean Dyche doesn’t run Burnley Football Club

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Re: The wait is over - ALK Capital buy Burnley FC

Post by dibraidio » Thu Dec 31, 2020 2:45 pm

There's an article in the clitheroe advertiser about the men behind ALK.

https://www.clitheroeadvertiser.co.uk/s ... ey-3082651

Interesting that one is John Dewey described as "An experienced Chief Operations Officer". Could he be coming in as CEO? I can't see him coming in and reporting to Neil Hart.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Spijed » Thu Dec 31, 2020 2:47 pm

claptrappers_union wrote:
Thu Dec 31, 2020 2:44 pm
Sean Dyche doesn’t run Burnley Football Club
No, but without him we wouldn't have had the success we've had in recent years.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Vegas Claret » Thu Dec 31, 2020 2:51 pm

dibraidio wrote:
Thu Dec 31, 2020 2:45 pm
There's an article in the clitheroe advertiser about the men behind ALK.

https://www.clitheroeadvertiser.co.uk/s ... ey-3082651

Interesting that one is John Dewey described as "An experienced Chief Operations Officer". Could he be coming in as CEO? I can't see him coming in and reporting to Neil Hart.
when you read that it has to fill you with confidence, cheers for the link

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Re: The wait is over - ALK Capital buy Burnley FC

Post by tim_noone » Thu Dec 31, 2020 2:59 pm

Wellsy1882 wrote:
Wed Dec 30, 2020 11:09 pm
Me too
Up the fuckin clarets
:D

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Re: The wait is over - ALK Capital buy Burnley FC

Post by tim_noone » Thu Dec 31, 2020 3:06 pm

Clarets4me wrote:
Thu Dec 31, 2020 1:35 am
I'm fairly sure both MG and JB will have arranged the payments for their shares in a tax-efficient manner, perhaps spread over two or more tax years ...
Come on....I'm sure you said they had taken no financial gain out of the club? :roll:

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Rileybobs » Thu Dec 31, 2020 3:10 pm

tim_noone wrote:
Thu Dec 31, 2020 3:06 pm
Come on....I'm sure you said they had taken no financial gain out of the club? :roll:
They haven’t.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by tim_noone » Thu Dec 31, 2020 3:15 pm

Rileybobs wrote:
Thu Dec 31, 2020 3:10 pm
They haven’t.
And the moon is made of cheese.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by fidelcastro » Thu Dec 31, 2020 3:17 pm

tim_noone wrote:
Thu Dec 31, 2020 3:15 pm
And the moon is made of cheese.
Please post your proof re: the directors.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Rileybobs » Thu Dec 31, 2020 3:18 pm

tim_noone wrote:
Thu Dec 31, 2020 3:15 pm
And the moon is made of cheese.
:?

I honestly don’t get this, and probably shouldn’t keep engaging when people claim so. But what money have MG and JB taken from the club?

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Re: The wait is over - ALK Capital buy Burnley FC

Post by BurnleyFC » Thu Dec 31, 2020 3:19 pm

dibraidio wrote:
Thu Dec 31, 2020 2:45 pm
There's an article in the clitheroe advertiser about the men behind ALK.

https://www.clitheroeadvertiser.co.uk/s ... ey-3082651

Interesting that one is John Dewey described as "An experienced Chief Operations Officer". Could he be coming in as CEO? I can't see him coming in and reporting to Neil Hart.
Hopefully, then Hart can go back to running a charity, rather than a Premier League football club.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by tim_noone » Thu Dec 31, 2020 3:20 pm

fidelcastro wrote:
Thu Dec 31, 2020 3:17 pm
Please post your proof re: the directors.
I'm quoting clarets4me...so the balls in his court.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Lowbankclaret » Thu Dec 31, 2020 3:20 pm

Interesting read that article.

The main theme is as I suspected they all know how to make money. That’s their goal in life.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by fidelcastro » Thu Dec 31, 2020 3:21 pm

tim_noone wrote:
Thu Dec 31, 2020 3:20 pm
I'm quoting clarets4me...so the balls in his court.
Yes, I knew you didn't have any.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Vegas Claret » Thu Dec 31, 2020 3:25 pm

Lowbankclaret wrote:
Thu Dec 31, 2020 3:20 pm
Interesting read that article.

The main theme is as I suspected they all know how to make money. That’s their goal in life.
which you can only do if you are successful - ambition, a wonderful thing in the right hands

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Re: The wait is over - ALK Capital buy Burnley FC

Post by SussexDon1inIreland » Thu Dec 31, 2020 3:27 pm

This takeover saddens me in some ways but accept it had to happen probably so the club can survive , but lets not forget that Burnley FC has become attractive BECAUSE of the excellent stewardship of Messrs Garlick JB and Barry Kilby and the management team under Sean Dyche.If your in favour of the takeover you have to acknowledge that this would not have happened without these guys amazing management of our beloved club.

UTC
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Re: The wait is over - ALK Capital buy Burnley FC

Post by elwaclaret » Thu Dec 31, 2020 3:34 pm

Spijed wrote:
Thu Dec 31, 2020 2:47 pm
No, but without him we wouldn't have had the success we've had in recent years.
While I fully agree with your sentiments Spijed maybe a little bit more of no longer being the big fish in a small pond, will hopefully bring a different challenge for SD and he will really show us what he is made of on a more even field. SD has a new challenge, and he must adapt and rise to it. He is no longer in charge of a small town successful business.... he will be judged by the new owners on what he does from now and secondly what he has achieved. It will buy him time, but rightly no longer bring the untouchability he has enjoyed under local control.
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Re: The wait is over - ALK Capital buy Burnley FC

Post by jrgbfc » Thu Dec 31, 2020 3:38 pm

elwaclaret wrote:
Thu Dec 31, 2020 3:34 pm
While I fully agree with your sentiments Spijed maybe a little bit more of no longer being the big fish in a small pond, will hopefully bring a different challenge for SD and he will really show us what he is made of on a more even field. SD has a new challenge, and he must adapt and rise to it. He is no longer in charge of a small town successful business.... he will be judged by the new owners on what he does from now and secondly what he has achieved. It will buy him time, but rightly no longer bring the untouchability he has enjoyed under local control.
I think Dyche will have to get used to having a lot less power under the new owners. Things like pre season, its clear up to now he's had 100% control over it, but i expect ALK will have bigger plans than playing Fleetwood or Accy every year.
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Re: The wait is over - ALK Capital buy Burnley FC

Post by Dodobdobodobo » Thu Dec 31, 2020 3:38 pm

dibraidio wrote:
Thu Dec 31, 2020 2:45 pm
There's an article in the clitheroe advertiser about the men behind ALK.

https://www.clitheroeadvertiser.co.uk/s ... ey-3082651

Interesting that one is John Dewey described as "An experienced Chief Operations Officer". Could he be coming in as CEO? I can't see him coming in and reporting to Neil Hart.
A very impressive group of gentlemen, welcome on board UTC

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Re: The wait is over - ALK Capital buy Burnley FC

Post by ClaretTony » Thu Dec 31, 2020 3:41 pm

Spijed wrote:
Thu Dec 31, 2020 1:05 pm
This is taken from the Rovers message board:

"Only time will tell.

The public statement and retention of Garlick on the board aren't any different to what Venkys came out with when they kept John Williams as chairman.

I doubt the Americans will be so reckless or foolish as Venkys but they may well have very different ideas to those Garlick and Dyche have. e.g. they may want different types of players or a better style of play in return for their investment."
A lot different to John Williams - he was an employee of Blackburn Rovers

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Spijed » Thu Dec 31, 2020 3:48 pm

jrgbfc wrote:
Thu Dec 31, 2020 3:38 pm
I think Dyche will have to get used to having a lot less power under the new owners. Things like pre season, its clear up to now he's had 100% control over it, but i expect ALK will have bigger plans than playing Fleetwood or Accy every year.
That worries me slightly. Perhaps he feels playing the likes of Fleetwood gets the players in the right frame of mind. Who knows whether playing bigger teams in a pre-season tournament over in America would work so well, for example?

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Re: The wait is over - ALK Capital buy Burnley FC

Post by ClaretTony » Thu Dec 31, 2020 3:50 pm

Spijed wrote:
Thu Dec 31, 2020 3:48 pm
That worries me slightly. Perhaps he feels playing the likes of Fleetwood gets the players in the right frame of mind. Who knows whether playing bigger teams in a pre-season tournament over in America would work so well, for example?
So you are getting worried about whether we are going to play a pre-season game at Fleetwood

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Re: The wait is over - ALK Capital buy Burnley FC

Post by ClaretAL » Thu Dec 31, 2020 3:52 pm

I just cant understand the negativity, trepidation yes but some of the comments today beggar belief. Each to their own I suppose.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Spijed » Thu Dec 31, 2020 3:54 pm

ClaretTony wrote:
Thu Dec 31, 2020 3:50 pm
So you are getting worried about whether we are going to play a pre-season game at Fleetwood
No at all. I'd just want SD to retain control over who we play.

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Re: Selling our soul

Post by Spijed » Thu Dec 31, 2020 3:55 pm

dandeclaret wrote:
Thu Dec 31, 2020 1:26 pm
They weren't "Doing nothing" though.

In the last 5 years, there's investment in the first team to a level allowing for 2 top 10 finishes. There's a brand new training ground. There's a category 1 academy to allow for future revenue streams into the business. They have updated the disabled facilities. They have invested into the foundations of the scouting network.

So they were moving forward, with a focus on improving the things they felt needed improving. They may have stood still for the last 10 months, but that would be a success compared to most businesses who have gone backwards. Even big clubs like Barcelona and Inter are reporting huge, unsustainable losses. The plan at Burnley has given sustainability even through this. What it didn't allow was for the yearly addition of 1 player for the first team squad.

Expansion that is too quick with no clear strategy, in a business area with a 30-40% chance of losing your main income stream is very risky, and why so many football clubs just fall through the leagues from the Prem all the way to the bottom.
Excellent

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Rodleydave » Thu Dec 31, 2020 4:00 pm

Just wondering why 5 directors have immediately resigned.
And if ALK have used borrowed money who pays the interest?

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Re: The wait is over - ALK Capital buy Burnley FC

Post by jedi_master » Thu Dec 31, 2020 4:04 pm

Rodleydave wrote:
Thu Dec 31, 2020 4:00 pm
Just wondering why 5 directors have immediately resigned.
And if ALK have used borrowed money who pays the interest?
Because their shares have been bought and thus they can no longer be on the board of directors. I think resigned is the wrong term, they have elected to sell their percentage on to ALK.
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Re: The wait is over - ALK Capital buy Burnley FC

Post by ClaretTony » Thu Dec 31, 2020 4:07 pm

Rodleydave wrote:
Thu Dec 31, 2020 4:00 pm
Just wondering why 5 directors have immediately resigned.
No option - they've sold their shares

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Rodleydave » Thu Dec 31, 2020 4:09 pm

ah didn't realise they had sold ALL their shares.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Gnulty » Thu Dec 31, 2020 4:15 pm

Yeeeeehaw Yankee Doodle dandy, from now a Claret and not a Chianti...

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Duffer_ » Thu Dec 31, 2020 4:25 pm

Rileybobs wrote:
Thu Dec 31, 2020 3:18 pm
:?

I honestly don’t get this, and probably shouldn’t keep engaging when people claim so. But what money have MG and JB taken from the club?
I know we've been round this Rileybobs and I too honestly don't understand why we don't see it the same way.

Let's assume a club has £10m in cash and no other assets or liabilities. What is the difference between an owner taking £10m cash from the club in the form of a dividend and selling the club for £1, as opposed to the club buying a player for £10m and the owner immediately selling the club for £10m? In the first scenario the new owner has a club with no assets. In the second scenario the new owner has effectively paid £10m for a £10m player. In BOTH scenarios the old owner has £10m cash.

They have taken the capital growth, the asset value, OF the club. The revenues generated over the years have, in part, been invested in assets. The most significant of these is the first team playing squad. I view it in the same way as I would had they done a sale and leaseback of the squad. We now have temporary rights of use but the asset has effectively been sold and can only be sold for the benefit of BFC once.

Now, I completely understand the argument that they had the right to extract that value as they owned BFC. But to claim there has been no extraction of value is wrong.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Lowbankclaret » Thu Dec 31, 2020 4:27 pm

Rodleydave wrote:
Thu Dec 31, 2020 4:00 pm
Just wondering why 5 directors have immediately resigned.
And if ALK have used borrowed money who pays the interest?
I suspect they will be using same model as the Glaziers.
They will have borrowed £175 million against BFC.
They will be paid handsomely for their efforts.

The club will pay the interest.

But this will only become knowledge as time goes on.

Let’s see, open to see what the future holds.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by boatshed bill » Thu Dec 31, 2020 4:29 pm

Mixed feelings today.
I'm delighted for those who turn up and watch regularly, ST holders in particular.
I genuinely hope this leads to greater things than mere survival in the PL.
Against? I feel we've lost that David vs Goliath thing which for me makes Burnley FC unique.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Lowbankclaret » Thu Dec 31, 2020 4:29 pm

ClaretTony wrote:
Thu Dec 31, 2020 4:07 pm
No option - they've sold their shares
I think they have done a great job over the years, they deserve the windfall they just got.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Rileybobs » Thu Dec 31, 2020 4:35 pm

Duffer_ wrote:
Thu Dec 31, 2020 4:25 pm
I know we've been round this Rileybobs and I too honestly don't understand why we don't see it the same way.

Let's assume a club has £10m in cash and no other assets or liabilities. What is the difference between an owner taking £10m cash from the club in the form of a dividend and selling the club for £1, as opposed to the club buying a player for £10m and the owner immediately selling the club for £10m? In the first scenario the new owner has a club with no assets. In the second scenario the new owner has effectively paid £10m for a £10m player. In BOTH scenarios the old owner has £10m cash.

They have taken the capital growth, the asset value, OF the club. The revenues generated over the years have, in part, been invested in assets. The most significant of these is the first team playing squad. I view it in the same way as I would had they done a sale and leaseback of the squad. We now have temporary rights of use but the asset has effectively been sold and can only be sold for the benefit of BFC once.

Now, I completely understand the argument that they had the right to extract that value as they owned BFC. But to claim there has been no extraction of value is wrong.
I’m not claiming that the directors haven’t financially benefitted from the success of the club. Clearly they have. But they’ve benefited at the expense of ALK Capital, not BFC.

The sell-on value of the club was never guaranteed to be higher than the purchase price, so I can’t see how anybody can begrudge them doing well out of the sale, or how they can claim that the directors have taken money from the club.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Chester Perry » Thu Dec 31, 2020 4:43 pm

Lowbankclaret wrote:
Thu Dec 31, 2020 4:27 pm
I suspect they will be using same model as the Glaziers.
They will have borrowed £175 million against BFC.
They will be paid handsomely for their efforts.

The club will pay the interest.

But this will only become knowledge as time goes on.

Let’s see, open to see what the future holds.
that is extremely unlikely and contradictory to what they have said

Unlikely because the club does not generate enough operational profit to pay the loan off - only a few clubs in the world could be bought this way

Contradictory because they have said clearly (and to the Premier League) that they have a small number of significant investors
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Re: The wait is over - ALK Capital buy Burnley FC

Post by Lowbankclaret » Thu Dec 31, 2020 4:55 pm

Chester Perry wrote:
Thu Dec 31, 2020 4:43 pm
that is extremely unlikely and contradictory to what they have said

Unlikely because the club does not generate enough operational profit to pay the loan off - only a few clubs in the world could be bought this way

Contradictory because they have said clearly (and to the Premier League) that they have a small number of significant investors
That’s good then.
Investors do expect returns, let’s hope we have the success that gets them the returns they want.

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Duffer_ » Thu Dec 31, 2020 5:10 pm

Rileybobs wrote:
Thu Dec 31, 2020 4:35 pm
I’m not claiming that the directors haven’t financially benefitted from the success of the club. Clearly they have. But they’ve benefited at the expense of ALK Capital, not BFC.

The sell-on value of the club was never guaranteed to be higher than the purchase price, so I can’t see how anybody can begrudge them doing well out of the sale, or how they can claim that the directors have taken money from the club.
Two days ago BFC had unencumbered net assets of approx £200m. Tomorrow, we could have liabilities in the form of long term debt of £200m and net assets of £0. Even if it is not in the form of long term debt, those assets are acting as security against the investment. If things don't work out then those assets (players) may be sold to service the debt or the capital investment made by ALK. The sale proceeds will not be cash in the bank for BFC.

I think you are making too much of the distinction between taking cash out of the club, compared with reducing the realisable assets for the benefit of the club. What matters imo is the extraction of value, not "money".

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Re: The wait is over - ALK Capital buy Burnley FC

Post by Paul Waine » Thu Dec 31, 2020 5:14 pm

Lowbankclaret wrote:
Thu Dec 31, 2020 4:55 pm
That’s good then.
Investors do expect returns, let’s hope we have the success that gets them the returns they want.
Hi Lowbank, as discussed above, Mike Garlick, John B and the other directors have sold shares to Velocity Sports Partners Ltd. In the case of MG and JB, as they are continuing as directors they haven's sold all their shares. The other directors will have sold all their shares. It's reported that this 84% of Burnley FC shares have been sold for £170 million. Let's say that, collectively, these directors, way back in time, paid £40 million (theoretical figures - I don't know what actual figure is). So, today, these directors will have, collectively received a return in the form of a capital gain of £130 million.

In exactly the same way, the investors who have backed ALK/VSP may only be aiming to receive a return when the club is sold on again to new investors. Who knows, in 5 or 10 years time, if Burnley have remained in the Premier League all that time, the club may be worth £500 million and, maybe a lot more. This increase in value is possible, IF the value of Premier League football clubs follows similar trajectories that have been traced by many US sports franchises.

That's investors for you. They are taking a risk with the aim of making a lot of money. They may all be happy, just as Mike Garlick and John B were happy, not to take any interim rewards as dividends from the club.

Exciting times.

UTC

Paul Waine
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Re: The wait is over - ALK Capital buy Burnley FC

Post by Paul Waine » Thu Dec 31, 2020 5:18 pm

Duffer_ wrote:
Thu Dec 31, 2020 5:10 pm
Two days ago BFC had unencumbered net assets of approx £200m. Tomorrow, we could have liabilities in the form of long term debt of £200m and net assets of £0. Even if it is not in the form of long term debt, those assets are acting as security against the investment. If things don't work out then those assets (players) may be sold to service the debt or the capital investment made by ALK. The sale proceeds will not be cash in the bank for BFC.

I think you are making too much of the distinction between taking cash out of the club, compared with reducing the realisable assets for the benefit of the club. What matters imo is the extraction of value, not "money".
Hi Duffer, take a look at my post. I suggest you consider whether the model I propose - which is exactly the model followed by Mike Garlick and John B - is also an attractive model for ALK/SVP investors.

I don't think we know anything about the amount of debt that may be secured against BFC assets - unless numbers have been added to the "blank proformas" that were filed with Companies House in the last few days.

Exciting times.

UTC

GodIsADeeJay81
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Re: The wait is over - ALK Capital buy Burnley FC

Post by GodIsADeeJay81 » Thu Dec 31, 2020 5:21 pm

tim_noone wrote:
Thu Dec 31, 2020 3:06 pm
Come on....I'm sure you said they had taken no financial gain out of the club? :roll:
They took no wages.
There may have been some financial gain if they loaned the club some money in the past, but that's it.

Rileybobs
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Re: The wait is over - ALK Capital buy Burnley FC

Post by Rileybobs » Thu Dec 31, 2020 5:32 pm

Duffer_ wrote:
Thu Dec 31, 2020 5:10 pm
Two days ago BFC had unencumbered net assets of approx £200m. Tomorrow, we could have liabilities in the form of long term debt of £200m and net assets of £0. Even if it is not in the form of long term debt, those assets are acting as security against the investment. If things don't work out then those assets (players) may be sold to service the debt or the capital investment made by ALK. The sale proceeds will not be cash in the bank for BFC.

I think you are making too much of the distinction between taking cash out of the club, compared with reducing the realisable assets for the benefit of the club. What matters imo is the extraction of value, not "money".
You’re straying way off the point that I was challenging another poster about, which is that the directors haven’t taken any money out of the club.

You can hypothesise about whether ALK will be operating with debt, and how they intend to service it, and you raise some good points. I’m just challenging the posters who are claiming that the directors have taken money from the club, which to my knowledge they haven’t. I don’t wish to go round in circles, but I take exception to people making up lies about other people. Curiously you don’t see the same people accusing Kilby of taking money from the club.

RalphCoatesComb
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Re: The wait is over - ALK Capital buy Burnley FC

Post by RalphCoatesComb » Thu Dec 31, 2020 5:35 pm

The jury is out for me. I have been happy with the running of the Club since Barry Kilby has been involved. Let's see how these Colonial Cousins perform before hailing them as the new Messiahs.

Having said that, Alan Pace made the right noises, if a little predictable, during the piece posted by the Club.

COYC !

Lowbankclaret
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Re: The wait is over - ALK Capital buy Burnley FC

Post by Lowbankclaret » Thu Dec 31, 2020 5:54 pm

Paul Waine wrote:
Thu Dec 31, 2020 5:14 pm
Hi Lowbank, as discussed above, Mike Garlick, John B and the other directors have sold shares to Velocity Sports Partners Ltd. In the case of MG and JB, as they are continuing as directors they haven's sold all their shares. The other directors will have sold all their shares. It's reported that this 84% of Burnley FC shares have been sold for £170 million. Let's say that, collectively, these directors, way back in time, paid £40 million (theoretical figures - I don't know what actual figure is). So, today, these directors will have, collectively received a return in the form of a capital gain of £130 million.

In exactly the same way, the investors who have backed ALK/VSP may only be aiming to receive a return when the club is sold on again to new investors. Who knows, in 5 or 10 years time, if Burnley have remained in the Premier League all that time, the club may be worth £500 million and, maybe a lot more. This increase in value is possible, IF the value of Premier League football clubs follows similar trajectories that have been traced by many US sports franchises.

That's investors for you. They are taking a risk with the aim of making a lot of money. They may all be happy, just as Mike Garlick and John B were happy, not to take any interim rewards as dividends from the club.

Exciting times.

UTC
I hope all the optimists are correct.

That the investors will not want to be taking profit for many years to come.

tim_noone
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Re: The wait is over - ALK Capital buy Burnley FC

Post by tim_noone » Thu Dec 31, 2020 6:09 pm

GodIsADeeJay81 wrote:
Thu Dec 31, 2020 5:21 pm
They took no wages.
There may have been some financial gain if they loaned the club some money in the past, but that's it.
As I said....in the world of Finance and business no one does out for nowt.

Locked