ALK Capital or Farnell/Elkashashy takeover

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Chester Perry
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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Fri Feb 17, 2023 4:50 pm

Vegas Claret wrote:
Fri Feb 17, 2023 4:08 pm
might make it easier for them to be paid ?
Not really,

Neither Velocity Sports Partners Limited or ALK Capital Limited are part of the Velocity Sports Limited (Jersey), Kettering Capital Limited, Calder Vale Holdings Limited, Burnley FC Holdings Limited, Burnley Football and Athletic Club Limited structure (note Longside Properties Limited and Burnley FC Women Limited are also under Burnley FC Holdings Limited).
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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Taffy on the wing » Fri Feb 17, 2023 5:52 pm

Chester Perry wrote:
Fri Feb 17, 2023 3:45 pm
So the new address for Velocity Sports Partners Limited (and the contact address for its directors Alan Pace, Stuart Hunt and Michael Lee Smith is Suite G04, 1 Quality Court, Chancery Lane, London, England, WC2A 1HR where a total of 4,475 companies are registered

https://ukcompanies.lursoft.lv/en/addre ... es?page=90

there is nothing too unusual in that

However, ALK Capital Limited is still registered at 1 Park Row, Leeds, United Kingdom, LS1 5AB, the contact details for the same 3 directors being at ALK Capital LLC;s registered office in Delaware - 8 The Green, Suite R, Dover, Delaware, United States, 19901 where no doubt many other companies are registered

Both Kettering Capital Limited and Calder Vale Holdings Limited have registered offices at One Mayfair Place Level 1, Devonshire House, Mayfair, London, United Kingdom, W1J 8AJ (another address with many companies registered at it) with the directors contact details for the same three directors being 8 The Green, Suite R, Dover, Delaware, United States, 19901

The move for Velocity Sports Partners is interesting in this context as it brings contact details for the directors on-shore (note contact details for directors at the club and its constituent entities are all at Turf Moor). The potential reasons for it are varied, particularly given the company thus far has appeared dormant and it still has not produced a confirmation statement for the last year or a set of accounts ever. I had instinctually thought the move a precursor to it be disposed of as a shell company, but the change in director contact details has me intrigued.
The whole thing is like a shell game.......but with more than 3 cups.
Why make things so complicated unless you're hiding something?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by OffTheBar » Fri Feb 17, 2023 5:56 pm

Nothing unusual in it

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Fri Feb 17, 2023 6:44 pm

OffTheBar wrote:
Fri Feb 17, 2023 5:56 pm
Nothing unusual in it
Well no but there is nothing unusual in small business owners doing as they please.

Unfortunately, Alan Pace has a forum full of weirdos scrutinising what he is doing.

I'm just waiting for the match report from the Norwich game of that Chinese consortium who got Sean Dyche sacked.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by NewClaret » Fri Feb 17, 2023 6:45 pm

ClaretPete001 wrote:
Fri Feb 17, 2023 6:44 pm

Unfortunately, Alan Pace has a forum full of weirdos scrutinising what he is doing.
Speak for yourself :lol:
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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Fri Feb 17, 2023 6:46 pm

NewClaret wrote:
Fri Feb 17, 2023 6:45 pm
Speak for yourself :lol:
Guilty as charged m'lud...!

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by NewClaret » Fri Feb 17, 2023 7:05 pm

ClaretPete001 wrote:
Fri Feb 17, 2023 6:46 pm
Guilty as charged m'lud...!
Joking pal. Anyone who contributes regularly to this thread is weird :D

I’m sticking to my theory that the debt hasn’t been repaid, but possibly restructured to a longer term working capital type facility, as per CP’s suggestion, and in doing that the charges on some of the entities have been released bar Kettering.

I’d love it to be something else but that’s where I stand until the Kettering charge is satisfied.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Fri Feb 17, 2023 10:45 pm

NewClaret wrote:
Fri Feb 17, 2023 7:05 pm
Joking pal. Anyone who contributes regularly to this thread is weird :D

I’m sticking to my theory that the debt hasn’t been repaid, but possibly restructured to a longer term working capital type facility, as per CP’s suggestion, and in doing that the charges on some of the entities have been released bar Kettering.

I’d love it to be something else but that’s where I stand until the Kettering charge is satisfied.
So this will get you going NewClaret, though I really don't think it should

for some reason - possibly the same reasons as Michael Smith - I (and it appears everyone else) had forgotten that the
'Charges' for the MSD loan were also separately applied to Longside Properties Limited back on December 30 2020. Needless to say they are still listed as 'Outstanding'

It covers all of Turf Moor and the surrounding land including the car par next to the cricket club, Turf Moor Gym, All the Gawthorpe property (Home Farm) and the land off Mollywood Lane (which is close to J9 of the M65)

https://find-and-update.company-informa ... 19/charges

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by NewClaret » Fri Feb 17, 2023 11:01 pm

Chester Perry wrote:
Fri Feb 17, 2023 10:45 pm
So this will get you going NewClaret, though I really don't think it should

for some reason - possibly the same reasons as Michael Smith - I (and it appears everyone else) had forgotten that the
'Charges' for the MSD loan were also separately applied to Longside Properties Limited back on December 30 2020. Needless to say they are still listed as 'Outstanding'

It covers all of Turf Moor and the surrounding land including the car par next to the cricket club, Turf Moor Gym, All the Gawthorpe property (Home Farm) and the land off Mollywood Lane (which is close to J9 of the M65)

https://find-and-update.company-informa ... 19/charges
Great work CP.

Told ya ;)

Definitely a refi with MSD with associated restructuring of the security.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Fri Feb 17, 2023 11:14 pm

NewClaret wrote:
Fri Feb 17, 2023 11:01 pm
Great work CP.

Told ya ;)

Definitely a refi with MSD with associated restructuring of the security.
at best it suggests the debt has been further reduced with MSD, though it is difficult to believe that MSD would give up access to income streams at the club as part of the security for any type of loan they have with VSL - these properties are not worth huge amounts in the general scheme of things

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by NewClaret » Fri Feb 17, 2023 11:26 pm

Chester Perry wrote:
Fri Feb 17, 2023 11:14 pm
at best it suggests the debt has been further reduced with MSD, though it is difficult to believe that MSD would give up access to income streams at the club as part of the security for any type of loan they have with VSL - these properties are not worth huge amounts in the general scheme of things
They haven’t though, have they?

I thought Kettering owned BFC shares so presumably that’s where the income stream is?

This is where my understanding of the corporate structure is lacking. I really need you to draw me a picture CP.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Fri Feb 17, 2023 11:53 pm

NewClaret wrote:
Fri Feb 17, 2023 11:26 pm
They haven’t though, have they?

I thought Kettering owned BFC shares so presumably that’s where the income stream is?

This is where my understanding of the corporate structure is lacking. I really need you to draw me a picture CP.
I posted this back in September - there was a lot of discussion about the structure then, it is possible that external investment also applies to ALK Capital LLC and or Velocity Sports Partners LLC - the discussion starts around page 204 of this thread
Chester Perry wrote:
Fri Sep 09, 2022 2:55 pm
this is how I see it pictorially (if I can get this to work)
ALK-VSL Structure.JPG
ALK-VSL Structure.JPG (80.49 KiB) Viewed 3153 times

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by NewClaret » Sat Feb 18, 2023 12:17 am

Cannot believe I missed that CP. It was the last post of 205 so I must have not seen it as the page turned. I’ve saved it & will take a look tomorrow. Thanks 👍🏻

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by aggi » Sat Feb 18, 2023 8:35 am

NewClaret wrote:
Fri Feb 17, 2023 11:26 pm
They haven’t though, have they?

I thought Kettering owned BFC shares so presumably that’s where the income stream is?

This is where my understanding of the corporate structure is lacking. I really need you to draw me a picture CP.
As I said before, the income stream up to Kettering would be minimal if Burnley are a distressed company.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Hedontplayforyou » Sat Feb 18, 2023 8:53 am

Long story short? The idea that there was new investment is now quashed and it was in fact a re-financing of the debt?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Quickenthetempo » Sat Feb 18, 2023 9:08 am

Hedontplayforyou wrote:
Sat Feb 18, 2023 8:53 am
Long story short? The idea that there was new investment is now quashed and it was in fact a re-financing of the debt?
Would investment really help that much? They would want a 8% return on any investment anyway.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Nori1958 » Sat Feb 18, 2023 9:09 am

Hedontplayforyou wrote:
Sat Feb 18, 2023 8:53 am
Long story short? The idea that there was new investment is now quashed and it was in fact a re-financing of the debt?
Everybody, on here and elsewhere are just guessing.
Probably best just to wait till it's official

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Paul Waine » Sat Feb 18, 2023 10:15 am

Hedontplayforyou wrote:
Sat Feb 18, 2023 8:53 am
Long story short? The idea that there was new investment is now quashed and it was in fact a re-financing of the debt?
Hi Hedont, let's look at what we know from available information:

1) Mike Smith, one of directors had submitted forms in 8th Feb that states MSD debt has been satisfied, i.e. repaid in full.
2) MSD has no obligation to submit forms to say their debt has been satisfied, BUT, they would object and take action to protect their debt if the filing isn't accurate.
3) Directors don't have obligation to file that debt has been satisfied and don't have to file immediately debt has been satisfied.
4) MSD charge applied to all the companies charged, there is no logic that says debt can be satisfied for the 3 companies "satisfied" has been filed and it doesn't equally apply to the Kettering and Longside.
5) So, my first conclusion, is that Burnley FC and all other companies have paid off debt to MSD.

6) Where has the money come from to do this?
7) Three alternatives:
8) New loan from another lender? We will know this if/when a new lender files their charge by 1st March at latest. (This being 21 days after 8 Feb). BUT, very unlikely a new lender wouldn't file their charge immediately they paid money to BFC. Don't forget BFC didn't need to file that MSD loan had been satisfied immediately after it was repaid. They may have repaid earlier - there were rumours in Nov - and not filed until January transfer window closed.
9) Surplus cash flow from parachute payment, assuming second instalment of parachute payment received in December. Plus, of course, confident view of budgets through to end of season...BUT, this probably depends on confidence in future cashflows.
10) New investments into Velocity Sports Partnership (US entity). We know this has always been Alan Pace's plan. We were introduced to a new investor in Nov 2021. There was talk of new investor that didn't come through when we lost at Norwich, April 2022. The club has progressed a lot since then. Burnley are playing good football. It looks likely Burnley will be back in Premier League next season.
11) So, my second conclusion is that there is progress on new investors. This doesn't mean a billionaire had taken a stake, more likely a few smaller millionaires have bought stake in VSP (US).
12) Just to throw another thought in, we have 2 current BFC directors, both have invested in BEC before. One or both of them might have fancied a modest new investment. Just my speculation. The beauty of VSP (US) is that the public never gets to see who had invested (and how much) unless they choose to announce it. F

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Nori1958 » Sat Feb 18, 2023 10:19 am

Like I said..... Guessing

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Paul Waine » Sat Feb 18, 2023 10:24 am

Chester Perry wrote:
Fri Feb 17, 2023 11:53 pm
I posted this back in September - there was a lot of discussion about the structure then, it is possible that external investment also applies to ALK Capital LLC and or Velocity Sports Partners LLC - the discussion starts around page 204 of this thread
Hi CP, I forget whether I've said this before. I'm very sure there are errors in your diagram. There won't be any outside investors into Velocity Sports Jersey. All the investors will be directly into Velocity Sports Partners US. structure

The structure Alan Pace set up when he founded ALK Capital was always with the purpose of the separate entity Velocity Sports Partners US to be the vehicle for outside investors. It's a very common US investment structure.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by aggi » Sat Feb 18, 2023 11:05 am

Hedontplayforyou wrote:
Sat Feb 18, 2023 8:53 am
Long story short? The idea that there was new investment is now quashed and it was in fact a re-financing of the debt?
No one knows. You can take a guess on the available info but different people will come to different conclusions.

Personally I don't think wiping out the debt makes commercial sense from ALK's standpoint but who knows.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Sat Feb 18, 2023 12:45 pm

Paul Waine wrote:
Sat Feb 18, 2023 10:24 am
Hi CP, I forget whether I've said this before. I'm very sure there are errors in your diagram. There won't be any outside investors into Velocity Sports Jersey. All the investors will be directly into Velocity Sports Partners US. structure

The structure Alan Pace set up when he founded ALK Capital was always with the purpose of the separate entity Velocity Sports Partners US to be the vehicle for outside investors. It's a very common US investment structure.
you did say that Paul, which is why I referenced there was that option in my post last night - I still think it is possible for investors (likely non-US citizens) to invest directly in Velocity Sports Limited (Jersey) rather than the Velocity Sports Partners LLC (though they may be none yet) so have adapted the model thus
ALK-VSL Structure 2.JPG
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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Down_Rover » Tue Feb 21, 2023 11:12 am

I think the charge satisfied on Feb 8 related to the discounting of the Chris Wood proceeds, presumably Newcastle have paid up now

MSD charge is still outstanding. We won’t know for how much until we see accounts, maybe even June 23 accounts

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Swizzlestick » Tue Feb 21, 2023 11:22 am

Down_Rover wrote:
Tue Feb 21, 2023 11:12 am
I think the charge satisfied on Feb 8 related to the discounting of the Chris Wood proceeds, presumably Newcastle have paid up now

MSD charge is still outstanding. We won’t know for how much until we see accounts, maybe even June 23 accounts
The charge satisfied was in relation to MSD. The charges re Macquarie Bank, with whom the Chris Wood/Nick Pope/Nathan Collins transfer fee proceeds were financed with, remain outstanding.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by arise_sir_charge » Tue Feb 21, 2023 11:24 am

Yes, it’s the MSD charge that has been satisfied.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Tue Feb 21, 2023 11:28 am

As New Claret and others have pointed out Not all the MSD charges have been resolved. The charges on the main assets of the ALK group - Turf Moor etc remain in place.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by aggi » Tue Feb 21, 2023 11:51 am

Down_Rover wrote:
Tue Feb 21, 2023 11:12 am
I think the charge satisfied on Feb 8 related to the discounting of the Chris Wood proceeds, presumably Newcastle have paid up now

MSD charge is still outstanding. We won’t know for how much until we see accounts, maybe even June 23 accounts
The release has a reference number which you can tie to the original charge (being the MSD one).

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by arise_sir_charge » Tue Feb 21, 2023 12:52 pm

ClaretPete001 wrote:
Tue Feb 21, 2023 11:28 am
As New Claret and others have pointed out Not all the MSD charges have been resolved. The charges on the main assets of the ALK group - Turf Moor etc remain in place.
But it’s says the charge as been satisfied in full. Suspect it’s just that they haven’t filed this on ther other business as yet.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Tue Feb 21, 2023 1:49 pm

Down_Rover wrote:
Tue Feb 21, 2023 11:12 am
I think the charge satisfied on Feb 8 related to the discounting of the Chris Wood proceeds, presumably Newcastle have paid up now

MSD charge is still outstanding. We won’t know for how much until we see accounts, maybe even June 23 accounts
This is the Chris Wood one with Macquarie

https://find-and-update.company-informa ... QQnHDivAx8

it should be satisfied in the next week or so when Newcastle make the payment which the Premier League/EFL will re-direct to Macquarie - the payment will never pass though our bank account

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Paul Waine » Tue Feb 21, 2023 2:09 pm

Chester Perry wrote:
Tue Feb 21, 2023 1:49 pm
This is the Chris Wood one with Macquarie

https://find-and-update.company-informa ... QQnHDivAx8

it should be satisfied in the next week or so when Newcastle make the payment which the Premier League/EFL will re-direct to Macquarie - the payment will never pass though our bank account
Do we expect to see the "charge satisfied" message filed at Companies House as soon as Newcastle have paid the money?

Do we expect Macquarie or BFC to be the ones that file the "satisfied" document?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Tue Feb 21, 2023 2:26 pm

Paul Waine wrote:
Tue Feb 21, 2023 2:09 pm
Do we expect to see the "charge satisfied" message filed at Companies House as soon as Newcastle have paid the money?

Do we expect Macquarie or BFC to be the ones that file the "satisfied" document?
Normal practice would suggest that 'charge satisfied' filing would occur in due course - I actually think the payment has already been made by Newcastle and given there are rules for both the Premier League and EFL in how quickly they are obliged to forward such payments that Macquarie have already received the sum.

As to who files the satisfied document, I don't know but it is in the interests of all parties that it is filed (including Newcastle - the club may be awaiting confirmation of receipt by Macquarie.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by andyh » Tue Feb 21, 2023 2:33 pm

I’m afraid this all goes over my head.

Chester I know that you were worried/critical about the clubs finances last year.

Without going into any detail (again it would go over my head) are you still worried?

Our on field activities seem to be going from strength to strength and the outgoings and incomings appear to a layman like myself to be likely to improve the financial position of the club and the myriad of associated companies. So I wondered if we had had a lucky escape or are we still a poor season away from disaster.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Paul Waine » Tue Feb 21, 2023 2:41 pm

andyh wrote:
Tue Feb 21, 2023 2:33 pm
I’m afraid this all goes over my head.

Chester I know that you were worried/critical about the clubs finances last year.

Without going into any detail (again it would go over my head) are you still worried?

Our on field activities seem to be going from strength to strength and the outgoings and incomings appear to a layman like myself to be likely to improve the financial position of the club and the myriad of associated companies. So I wondered if we had had a lucky escape or are we still a poor season away from disaster.
Hi andy, if I may offer my response, I don't think the club has had either a lucky escape or is a poor season away from disaster. I'm pretty confident Alan Pace and his colleagues know exactly what they are doing. ALK's plan for the club under their ownership is coming together very nicely. Yes, it would have been tougher if Vincent Kompany didn't want to come to manage the team, but I'm sure there would be other similar profiled managers available to bring in, just maybe second or third on their list wouldn't have produced the results we've seen so far this season.

Of course, CP will have his own views.

UTC

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by GodIsADeeJay81 » Tue Feb 21, 2023 2:53 pm

I noticed yesterday that some of our training gear is available from JD sports' website.
When did that become a thing?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by gandhisflipflop » Tue Feb 21, 2023 3:34 pm

Paul Waine wrote:
Tue Feb 21, 2023 2:41 pm
Hi andy, if I may offer my response, I don't think the club has had either a lucky escape or is a poor season away from disaster. I'm pretty confident Alan Pace and his colleagues know exactly what they are doing. ALK's plan for the club under their ownership is coming together very nicely. Yes, it would have been tougher if Vincent Kompany didn't want to come to manage the team, but I'm sure there would be other similar profiled managers available to bring in, just maybe second or third on their list wouldn't have produced the results we've seen so far this season.

Of course, CP will have his own views.

UTC
Spot on. Remember when posters were ‘mocking’ you ‘exciting times’ mantra? :roll:
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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Tue Feb 21, 2023 3:43 pm

arise_sir_charge wrote:
Tue Feb 21, 2023 12:52 pm
But it’s says the charge as been satisfied in full. Suspect it’s just that they haven’t filed this on ther other business as yet.
It says it is still outstanding as far as I can tell

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Paul Waine » Tue Feb 21, 2023 3:45 pm

gandhisflipflop wrote:
Tue Feb 21, 2023 3:34 pm
Spot on. Remember when posters were ‘mocking’ you ‘exciting times’ mantra? :roll:
I have recollections that not everyone shared my view. No worries.

Time for me to be preparing to head to The Den.

UTC

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Tue Feb 21, 2023 4:17 pm

Paul Waine wrote:
Tue Feb 21, 2023 3:45 pm
I have recollections that not everyone shared my view. No worries.

Time for me to be preparing to head to The Den.

UTC
I still don't to be honest Paul. I liken it to those who backed Buster Douglas to knockout Mike Tyson - they were right but it still made no sense.

Enjoy the game - I think it will be a tough one.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Tue Feb 21, 2023 5:08 pm

andyh wrote:
Tue Feb 21, 2023 2:33 pm
I’m afraid this all goes over my head.

Chester I know that you were worried/critical about the clubs finances last year.

Without going into any detail (again it would go over my head) are you still worried?

Our on field activities seem to be going from strength to strength and the outgoings and incomings appear to a layman like myself to be likely to improve the financial position of the club and the myriad of associated companies. So I wondered if we had had a lucky escape or are we still a poor season away from disaster.
Much more critical than worried at that and this stage.

My main issue has been the outflow of cash from the club - which it will never see fully returned and probably only partially returned at best. The level of ambivalence to this astounds me

You will find I have always been accepting/acknowledging of the talent the new ownership bring though not always happy by how they go about their business particularly the manner in which a number have been disposed of - I use the term as a reference to how these owners (who are deeply Christian we are told) treat people they don't want. There has also been a huge and somewhat gross rewriting of history and of the legacy of the Garlick/Dyche era (even the Kilby one to a lesser extent) that I know from personal correspondence has irked many more than just me.

I have accepted that new ideas, approaches and risks would be taken within their overall strategy, it is their right and in particular areas desperately needed, though we will never know just how much was actually in the Garlick roadmap - we were often told that this looked several years ahead by various people at the club (never by Garlick himself as I recall). Naturally the same who decry the Garlick era are the same ones spinning all the positives about Pace.

I have been hugely impressed by the VK appointment/performance this season and note how much of the developments including recruitment appears to be down to him. There has to be acknowledgement that Pace appointed him and gave him his freedoms, and also to the point that Paul Waine makes that such a sea change in approach is a very definite strategy that suggests there should have been alternates lined up - though Pace himself appeared to go absolutely all in on Kompany. We hope that succession planning is already in place given the acknowledgement of the threat of poaching in a recent media article. Getting this right, as we have seen repeatedly is a very difficult task even if your club has a recent strong record.

Are we only a poor season from disaster? not quite, much comes from how much you can realise from your assets and quickly reset again. It remains true that for all but a small handful, two or three consecutive such seasons can be perilous.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by aggi » Thu Feb 23, 2023 8:23 pm

Looks like VELOCITY SPORTS PARTNERS LIMITED is being struck off by the directors. Obviously decided it's no longer needed. That explains one late set of filling I guess (although they will still have to file insolvency docs)

https://find-and-update.company-informa ... ng-history

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Paul Waine » Wed Mar 08, 2023 9:44 pm

It's now a full calendar month since Companies House records recorded the full satisfaction of MSD's loan to BFC Holdings, BF&A and Calder Vale. So far as I can see no new charge is shown on Companies House filings.

Yes, Kettering Capital and Longside Properties still show the MSD security charge. However, I'm not sure how the full satisfaction can be recorded against the club that holds the players' contracts and receives all the tv money and other revenues arising as a football club, but the loan/charge hasn't also been satisfied in full with respect to KC and LP.

What do people make of no new loans being registered against the club? I guess we will know for certain when the latest set of accounts for the accounting period to 31-July-2022 are filed, plus the comments/notes on events after the balance sheet date. These accounts should be placed in public domain by the end of April/early May at the latest. I wonder if the accounts will be released to coincide with the club winning the Championship?

UTC

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Wed Mar 08, 2023 10:03 pm

Paul Waine wrote:
Wed Mar 08, 2023 9:44 pm
It's now a full calendar month since Companies House records recorded the full satisfaction of MSD's loan to BFC Holdings, BF&A and Calder Vale. So far as I can see no new charge is shown on Companies House filings.

Yes, Kettering Capital and Longside Properties still show the MSD security charge. However, I'm not sure how the full satisfaction can be recorded against the club that holds the players' contracts and receives all the tv money and other revenues arising as a football club, but the loan/charge hasn't also been satisfied in full with respect to KC and LP.

What do people make of no new loans being registered against the club? I guess we will know for certain when the latest set of accounts for the accounting period to 31-July-2022 are filed, plus the comments/notes on events after the balance sheet date. These accounts should be placed in public domain by the end of April/early May at the latest. I wonder if the accounts will be released to coincide with the club winning the Championship?

UTC
The accounts will be made up to July 22 so I'm not sure how much information we will get about recent activities in terms of post balance sheet events. My guess is that at this point the cash flow is not an issue. It is the summer quarter when cash flow gets stretched and the summer months when investment needs to be made into playing assets.

By my reckoning we need at least 8 players in the summer to cover the loans and the mid 30s older squad players.

My guess is that ALK have used advanced cashflow funds from parachute money to pay down some more of the debt perhaps enough so that the remaining amounts are covered by the tangible assets owned by KC and LP. And will then go for a further round of funding prior to summer.

Let's be honest, if the club is successful MSD will get it's money - if it's not then the club has nothing worth much of anything other than the tangible assets held by KC and LP. In a month or so, promotion will likely be guaranteed meaning the club can leave the residue of the MSD debt in place and go to lenders forecasting £140 million of future revenue as opposed to £70 million as it stand if we are not promoted.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Wed Mar 08, 2023 10:24 pm

In other words, ALK will now have to find the £50 million quid cash they squandered on shares in the last last financial year.

4 first 11 players - all young and exciting prospects are on loans and now need to be bought by the club or replacements and it is unlikely they will find 2 centre halves and the quality of Maatsen and Tella for 3 or 4 million in the Belgian league; particularly as we are now a PL club.

If the club can make it through the first PL year then it can generate good revenue because it will have PL broadcast revenue and Championship contracts for 2 or so seasons.

However, I think the squad needs £50 million quid's worth of investment in the summer and my guess is that is what the club is trying to sort out now but it would presumably be better to wait for promotion than do anything now.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Paul Waine » Thu Mar 09, 2023 7:36 am

ClaretPete001 wrote:
Wed Mar 08, 2023 10:03 pm
The accounts will be made up to July 22 so I'm not sure how much information we will get about recent activities in terms of post balance sheet events. My guess is that at this point the cash flow is not an issue. It is the summer quarter when cash flow gets stretched and the summer months when investment needs to be made into playing assets.

By my reckoning we need at least 8 players in the summer to cover the loans and the mid 30s older squad players.

My guess is that ALK have used advanced cashflow funds from parachute money to pay down some more of the debt perhaps enough so that the remaining amounts are covered by the tangible assets owned by KC and LP. And will then go for a further round of funding prior to summer.

Let's be honest, if the club is successful MSD will get it's money - if it's not then the club has nothing worth much of anything other than the tangible assets held by KC and LP. In a month or so, promotion will likely be guaranteed meaning the club can leave the residue of the MSD debt in place and go to lenders forecasting £140 million of future revenue as opposed to £70 million as it stand if we are not promoted.
"Satisfied in full" means exactly that, Pete. It doesn't mean some of the money has been paid back and we will release our charge on the entity that brings in all the money, plus those two other entities closest to it, meanwhile we will retain charges on two other entities.

Don't forget back in November we saw changes on the Jersey stock exchange that suggested MSD had withdrawn the securities that we understand are associated with their loan to the club.

Also, don't forget that it is the club's director, Mike Smith, who has filed the "satisfied in full" statement. MSD are under no obligation to make that filing themselves. They just don't need the security any more if they've been repaid.

Why was the "satisfied in full" filed so long after the November changes and a week after the January transfer window closed? Why has the "satisfied in full" not been filed on Kettering and Longside? I think we are seeing the club be cautious about financial announcements for the benefit of the club.

However, when the accounts are flied, I'd expect that the "events after the balance sheet date" must include the current status of the loan at the time the accounts are filed. Similarly, we will learn if there have been any other movements in club funds, whether new investments flowing from the shareholders or new borrowings and an indication if there have been new borrowings how this has been achieved without the creditor required a charge over the club's assets.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by clarethomer » Thu Mar 09, 2023 7:55 am

So are we in a better position than expected, or is it just a case of smoke and mirrors in terms of we could just be dealing with unsecured debts rather than secured?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Paul Waine » Thu Mar 09, 2023 8:19 am

clarethomer wrote:
Thu Mar 09, 2023 7:55 am
So are we in a better position than expected, or is it just a case of smoke and mirrors in terms of we could just be dealing with unsecured debts rather than secured?
Certainly, the delays in filing accounts by Calder Vale and Kettering appears to be "smoke and mirrors." Ditto the timing of "satisfied in full" filings on 3 entities and their absence for the other two.

No serious financial lender would lend unsecured to a football club, so we can rule out unsecured debt, unless the debt is from related parties, i.e. shareholders and directors. By shareholder in this case I'm thinking of the corporate entities, Calder Vale, Kettering, Velocity Sports, thus inter-company debt funded by money at the top ALK/VSP level.

We will know and understand more when next set of accounts are filed.
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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Thu Mar 09, 2023 9:29 am

Paul Waine wrote:
Thu Mar 09, 2023 7:36 am
"Satisfied in full" means exactly that, Pete. It doesn't mean some of the money has been paid back and we will release our charge on the entity that brings in all the money, plus those two other entities closest to it, meanwhile we will retain charges on two other entities.

Don't forget back in November we saw changes on the Jersey stock exchange that suggested MSD had withdrawn the securities that we understand are associated with their loan to the club.

Also, don't forget that it is the club's director, Mike Smith, who has filed the "satisfied in full" statement. MSD are under no obligation to make that filing themselves. They just don't need the security any more if they've been repaid.

Why was the "satisfied in full" filed so long after the November changes and a week after the January transfer window closed? Why has the "satisfied in full" not been filed on Kettering and Longside? I think we are seeing the club be cautious about financial announcements for the benefit of the club.

However, when the accounts are flied, I'd expect that the "events after the balance sheet date" must include the current status of the loan at the time the accounts are filed. Similarly, we will learn if there have been any other movements in club funds, whether new investments flowing from the shareholders or new borrowings and an indication if there have been new borrowings how this has been achieved without the creditor required a charge over the club's assets.
I don't know the ins and outs of the deal with MSD. I can only say that the view that the club made these announcements on some of the companies and not others because they are cautious about PR needs further elaboration as to why that would be. It makes little sense to me.

There seems little credible evidence that there is new investment from the owners. They don't appear to have any money and it's not credible given the nature of the deal and how the owners will make money from any sale of the club. The value of the deal is in the money taken from the clubs bank accounts. Unless the football marketplace changes dramatically there is little or no financial sense in putting more money in to it.

Let's start off with the business rationale and work backwards from there Paul. We both presumably agree that we need at least 4 first 11 players and likely another 4 to be competitive in the PL. So, unless the club has generated cash of £25 million this year (to pull a figure out of the air) as well as pay off the best part of $60 million to MSD. another x amount of million to the former owners and a decent spend in January we presume they will need more cash.

We our talking the best part of £100 million spend this year. I know we did good business in the summer selling players but I don't see it adds up to paying off MSD. Due to the nature of cash and how it is paid in football I don't think we can say with any real accuracy where the club is at but it seems unlikely that ALK can do what no one else can and generate tens of millions out of thin air.

At this point, they probably don't need cash until the summer and there seems little point in going out for more funding when PL status is only a matter of a month or so away. So, there is no business reason to do any deals now.

They need to gamble on staying in the PL because the first two or three years in the PL is where a club like Burnley makes money after that it gets hard because EFL contracts are replaced by PL contracts. So, there is a potential strategy for success in the medium term if the club can survive more than one season in the PL.

So, the only credible view IMHO is what others have said that we are in the middle of a re-structuring deal, which will generate cash for a summer splurge and that the medium term plan is to fund it from the cash generated from PL broadcast revenue in the first 2 or 3 seasons back in the PL.

It makes sense to me - the only flaw in the plan from a fans perspective is that they bought a small town PL club and if everything goes to plan we will still be a small town PL club at the end of it. And perhaps, that is good enough....!

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Nori1958 » Thu Mar 09, 2023 9:37 am

Back to the guess work I see
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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Quickenthetempo » Thu Mar 09, 2023 9:53 am

Nori1958 wrote:
Thu Mar 09, 2023 9:37 am
Back to the guess work I see
Maybe if Alan filed his accounts on time, there would be less guess work?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by GodIsADeeJay81 » Thu Mar 09, 2023 9:57 am

Do people still think that transfer fees are paid up front every time?
The club won't need £100 million this year.

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