ALK Capital or Farnell/Elkashashy takeover

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Vegas Claret » Thu May 11, 2023 4:45 pm

Chester Perry wrote:
Thu May 11, 2023 4:40 pm
the picture we have been given is for the most part 9 months out of date and actually only reflected a snapshot at a point of time

It paints a much better picture than was imagined in the media and by opposition fans and confirms what most people on this board assumed - which was we would certainly be fine for a year outside the Premier League and that ALK/VSL had the capability to navigate a path through the imagined mire and actual challenges.

The contributions of at least £27m from the ownership group to meeting their share purchase commitments has been greatly beneficial to the clubs ability to meet some of the challenges that they passed onto it and in refreshing the squad

Factoring players to help meet those costs appeared expensive - £1.366 for the Chris Wood (1 outstanding fee payment of £12.5m) and Nick Pope (3 outstanding fee payments totalling £7m) netting just £13.874m after outstanding acquisition obligations were met - but as others will say in present value terms that may actually be profitable when we consider the bank base rate now has risen 12 times in successive months and inflation is at 10%

The club has thus far contributed at least £96m to the takeover of which over £46m is directly related to financing with MSD and Macquarie (if we believe The Athletic) - a new fixed interest payment of almost £3m pa will make budgeting easier

Reports after the failed bid for KV Kortrijk suggest that the ownership group are looking to keep as much money as possible in the club (at least in the short term) which I hope means that they are hoping to meet as least some, if not all, of the final stage payment from their own funds. I still expect us to factor Premier League monies with Macquarie in the coming weeks - every promoted club does these days, as do some that have been there a while.

To my mind, the strongest signals for the future have come from the ownership group - use of the own monies together with the tale of them providing security and guarantee for the latest loan tells me that they have much greater confidence now in their enterprise than they did when they embarked upon it

I hold little hope that the CVHL debt will be returned to the club in a way that increases the cash balance, but suspect that the outflows of the first two years will not be repeated over the next two, at least by volume

I said before the results came out that ALK/VSL have shown themselves to be capable, and for now there is no reason to change that.

It has been a fantastical season, but I am mindful of the attitudes of both Sean Dyche and Vincent Kompany in not being too up or down in the immediate aftermath of singular events, moments or results, it is a lesson many supporters would do well to learn from
Brilliant, concise and easy to follow (it often gets too technical for me and others!) - much appreciated as always CP, top stuff !!
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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Thu May 11, 2023 4:45 pm

Big Vinny K wrote:
Thu May 11, 2023 4:09 pm
I think from memory meeting the requirements that Sky insist on in terms of facilities was around £1m - it may be more now.
I thought you also needed under soil heating too and then there will be other stuff like VAR.
A total figure of around £3m to meet PL standards seems pretty accurate.

When you look at Luton’s ground it’s closer to non league standard than Premier League. Presumably if a team like Luton went up they would be given more time to get up to standard as you would not think work needed would be possible in the 2 months summer break they would have.

Was the rovers fan the same fella who said on TV we weren’t that good and had been lucky to score a lot of late goals ?!!!!
We have spent at least £6m meeting the Sky requirements since 2014 - I think Leeds spent £9m when they got promoted

We had to provide two boxes with special glass, upgrade the floodlight, put in extra camera points - spent a fortune on permanent cabling, and increased both the size of and the connections to the press box - as you say there are numerous specifications regarding the pitch and other technologies - the cost is significant but the rewards are much greater

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Thu May 11, 2023 4:52 pm

Chester Perry wrote:
Thu May 11, 2023 4:40 pm

The contributions of at least £27m from the ownership group to meeting their share purchase commitments has been greatly beneficial to the clubs ability to meet some of the challenges that they passed onto it and in refreshing the squad
I'm not sure you've properly explained that Chester or if you have I haven't understood it.

We know where the money came from to pay off the original £102 million to the former owners and we know where the money came from to pay off the small share holders because there is a £114 million inter company loan in the accounts.

I asked above if you had any information on the £68 million owed to the former owners and I'm not sure you replied.

And there was much talk of ALK paying an initial £15 million for the club.

What is the £27 million?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Thu May 11, 2023 4:53 pm

Given we only got relegated a year ago can we compare ourselves to other promoted sides in terms of the stadium?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Thu May 11, 2023 5:16 pm

ClaretPete001 wrote:
Thu May 11, 2023 4:52 pm
I'm not sure you've properly explained that Chester or if you have I haven't understood it.

We know where the money came from to pay off the original £102 million to the former owners and we know where the money came from to pay off the small share holders because there is a £114 million inter company loan in the accounts.

I asked above if you had any information on the £68 million owed to the former owners and I'm not sure you replied.

And there was much talk of ALK paying an initial £15 million for the club.

What is the £27 million?
Only £10m of the reported upfront spend £15m by ALK/VSL is traceable in any way- it is entirely possible that they spent £5 in legal, advisory and financial service costs

Share purchase costs = initial deal (£170m) + cash element to small shareholders (£2.7m) = £172.7m

we know on December 30 2020 KCL had £98m and the different prices of shares issued that day suggested
£10m from ALK/VSL
£65m MSD loan passed through
£23m loan from the club

this £98m is what we can reasonably assume was the upfront payment

the first stage payment was £14m

the 2021 Accounts said BFACL had loaned CVHL £37m (which is £23m+£14m)

the 2021 Accounts also said total loans to CVHL were £102m ( Which is £65m + £37m)

The cash element to small shareholders is £2.7m and I am told the total of the two 2022 stage payments were around £37m - giving a 2022 share payment total of circa £39.7m

The 2022 Accounts state CVHL now owes £114.8m an increase of 12.8m

£39.7m - £12.8m = £26.9m - That is how I get to £27m as a round figure

There is still the issue of the £2.7m of club credit to the small shareholder - the information on how that has been managed has been hidden from us

The Burnley Football & Athletic Company Limited Annual Report and Financial Statements Year Ended 31 July 2022: Notes to the Financial Statements

26. Related party transactions

The Company has taken advantage of the exemption available in Section 33.1A of FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the Group…


so I have not assigned it - it may be that ALK/VSL have met the cost directly themselves so £26.9m becomes £29.6m but we do not know
Last edited by Chester Perry on Thu May 11, 2023 5:18 pm, edited 1 time in total.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by aggi » Thu May 11, 2023 5:18 pm

Chester Perry wrote:
Thu May 11, 2023 4:40 pm
...

Factoring players to help meet those costs appeared expensive - £1.366 for the Chris Wood (1 outstanding fee payment of £12.5m) and Nick Pope (3 outstanding fee payments totalling £7m) netting just £13.874m after outstanding acquisition obligations were met - but as others will say in present value terms that may actually be profitable when we consider the bank base rate now has risen 12 times in successive months and inflation is at 10%

...
Where is this coming from?

I can see a receipt of £17.235m in the cashflow which roughly equates to 10% fee which seems reasonable.

Saying that, the receipt from sale of intangibles (£7.3m) seems low when you think it would (by most transfer fee guesses) include £12.5m for Wood and £3m for Pope. I've got something in the back of my mind about additional fees (4% maybe) being payable on transfers at the time they happen but thought it was the buying club paying that. Some sell-on fees in there (maybe £3.5m if rumours are to be believed) but still seems low.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Thu May 11, 2023 5:28 pm

aggi wrote:
Thu May 11, 2023 5:18 pm
Where is this coming from?

I can see a receipt of £17.235m in the cashflow which roughly equates to 10% fee which seems reasonable.

Saying that, the receipt from sale of intangibles (£7.3m) seems low when you think it would (by most transfer fee guesses) include £12.5m for Wood and £3m for Pope. I've got something in the back of my mind about additional fees (4% maybe) being payable on transfers at the time they happen but thought it was the buying club paying that. Some sell-on fees in there (maybe £3.5m if rumours are to be believed) but still seems low.
Note 15 Creditors: amounts falling due within one year in BFACL Accounts
under accounts proceeds of factored debts

though I have missed £3.361m of the same in Note 16 Creditors: amounts falling due after more than one year

I had the cost from Note 9 Interest payable and similar expenses
under Finance Expense on Player trading creditors

As always happy to be educated if I have read this incorretly

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by aggi » Thu May 11, 2023 5:43 pm

Chester Perry wrote:
Thu May 11, 2023 5:28 pm
Note 15 Creditors: amounts falling due within one year in BFACL Accounts
under accounts proceeds of factored debts

though I have missed £3.361m of the same in Note 16 Creditors: amounts falling due after more than one year

I had the cost from Note 9 Interest payable and similar expenses
under Finance Expense on Player trading creditors

As always happy to be educated if I have read this incorretly
Yes, the two of those added together (13.874 + 3.361) gets you to the £17.235m from the cashflow statement. Fees at £1,366k seems a bit low to get you up to the expected £19.5m. Feels like a million missing somewhere.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Thu May 11, 2023 5:48 pm

aggi wrote:
Thu May 11, 2023 5:43 pm
Yes, the two of those added together (13.874 + 3.361) gets you to the £17.235m from the cashflow statement. Fees at £1,366k seems a bit low to get you up to the expected £19.5m. Feels like a million missing somewhere.
could it be balances owed to previous clubs

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Thu May 11, 2023 5:53 pm

Chester Perry wrote:
Thu May 11, 2023 5:48 pm
could it be balances owed to previous clubs
or even the additional expenses we know the game taxes transfers for

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Thu May 11, 2023 6:32 pm

Chester Perry wrote:
Thu May 11, 2023 5:48 pm
could it be balances owed to previous clubs
or with the income being split is the finance cost split too - meaning the rest will be spread across the 2023 and 2024 accounts

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Thu May 11, 2023 6:37 pm

Chester Perry wrote:
Thu May 11, 2023 5:16 pm
Only £10m of the reported upfront spend £15m by ALK/VSL is traceable in any way- it is entirely possible that they spent £5 in legal, advisory and financial service costs

Share purchase costs = initial deal (£170m) + cash element to small shareholders (£2.7m) = £172.7m

we know on December 30 2020 KCL had £98m and the different prices of shares issued that day suggested
£10m from ALK/VSL
£65m MSD loan passed through
£23m loan from the club

this £98m is what we can reasonably assume was the upfront payment

the first stage payment was £14m

the 2021 Accounts said BFACL had loaned CVHL £37m (which is £23m+£14m)

the 2021 Accounts also said total loans to CVHL were £102m ( Which is £65m + £37m)

The cash element to small shareholders is £2.7m and I am told the total of the two 2022 stage payments were around £37m - giving a 2022 share payment total of circa £39.7m

The 2022 Accounts state CVHL now owes £114.8m an increase of 12.8m

£39.7m - £12.8m = £26.9m - That is how I get to £27m as a round figure

There is still the issue of the £2.7m of club credit to the small shareholder - the information on how that has been managed has been hidden from us

The Burnley Football & Athletic Company Limited Annual Report and Financial Statements Year Ended 31 July 2022: Notes to the Financial Statements

26. Related party transactions

The Company has taken advantage of the exemption available in Section 33.1A of FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the Group…


so I have not assigned it - it may be that ALK/VSL have met the cost directly themselves so £26.9m becomes £29.6m but we do not know
The initial payment widely cited in the media was £102 million.

https://www.theguardian.com/football/20 ... -with-debt

£37 million from the clubs cash and a loan of £65 million equating to the £102 million inter company loan in the 21 accounts.

The figure of £170 million consisted of the £102 million plus the deferred payment to the former owners of £68 million.

Those figures account for the widely cited £170 million.

If £2.7 million was paid to small shareholder it leaves £7.3 million taken out of the club unaccounted for....! In addition, there is another £3 million added to the inter company loan of £114,700 in the 22 accounts. And there is another £1.5 million taken out in management service charges in the 22 accounts.

As far as I can see that is around £11.5 million taken out of the club unaccounted for....!

At this point, do we have any sight of the initial £10 million allegedly paid by ALK? Or the staged payment to meet the amount of £68 million to the former owners?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Thu May 11, 2023 6:52 pm

ClaretPete001 wrote:
Thu May 11, 2023 6:37 pm
The initial payment widely cited in the media was £102 million.

https://www.theguardian.com/football/20 ... -with-debt

£37 million from the clubs cash and a loan of £65 million equating to the £102 million inter company loan in the 21 accounts.

The figure of £170 million consisted of the £102 million plus the deferred payment to the former owners of £68 million.

Those figures account for the widely cited £170 million.

If £2.7 million was paid to small shareholder it leaves £7.3 million taken out of the club unaccounted for....! In addition, there is another £3 million added to the inter company loan of £114,700 in the 22 accounts. And there is another £1.5 million taken out in management service charges in the 22 accounts.

As far as I can see that is around £11.5 million taken out of the club unaccounted for....!

At this point, do we have any sight of the initial £10 million allegedly paid by ALK? Or the staged payment to meet the amount of £68 million to the former owners?
I know what the media have said about the upfront but prefer to be able to use monies I can trace - I am told the outstanding balance in stage payments in £21m

£98m + £14m + £37m + £21 = £170m

these are the numbers I have been working with on this thread for 14months + now and I have come across no information to make me change their use in my posts, writings or calculations

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Thu May 11, 2023 6:55 pm

More briefly, I haven't seen the evidence related to:

1) the December 30 2020 KCL- £98m.
2) the £10 million initial ALK payment
3) the £37 million staged payments

Not because there isn't any; just I haven't seen it...!

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Thu May 11, 2023 7:02 pm

ClaretPete001 wrote:
Thu May 11, 2023 6:55 pm
More briefly, I haven't seen the evidence related to:

1) the December 30 2020 KCL- £98m.
2) the £10 million initial ALK payment
3) the £37 million staged payments

Not because there isn't any; just I haven't seen it...!
I did say where it could be found - Filing occurred January 26 2021

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

KCL Capital Injection 2020 12 30.JPG
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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Thu May 11, 2023 7:16 pm

Chester Perry wrote:
Thu May 11, 2023 7:02 pm
I did say where it could be found - Filing occurred January 26 2021

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


KCL Capital Injection 2020 12 30.JPG
I'm not getting at you - you do brilliant work on here but I just want to understand. The media cited £102 million, which correlates to the £102 million inter company loan in the 21 accounts. If you are saying something other I just want to understand where you are getting it from.

It's likely probably obvious and I'm thick.

You say:

'we know on December 30 2020 KCL had £98m and the different prices of shares issued that day suggested

-£10m from ALK/VSL
-£65m MSD loan passed through
-£23m loan from the club'

Are you referring to something else on Dec 30? And if not how do you get the 3 classes of shares and the £98 million. I'm a bit lost on that....

And points 2 and 3?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Thu May 11, 2023 7:23 pm

ClaretPete001 wrote:
Thu May 11, 2023 7:16 pm
I'm not getting at you - you do brilliant work on here but I just want to understand. The media cited £102 million, which correlates to the £102 million inter company loan in the 21 accounts. If you are saying something other I just want to understand where you are getting it from.

It's likely probably obvious and I'm thick.

You say:

'we know on December 30 2020 KCL had £98m and the different prices of shares issued that day suggested

-£10m from ALK/VSL
-£65m MSD loan passed through
-£23m loan from the club'

Are you referring to something else on Dec 30? And if not how do you get the 3 classes of shares and the £98 million. I'm a bit lost on that....

And points 2 and 3?
Two purchases at different prices

first comes to £10m at £2 per share

second is a little short of £88m at almost £17.96 a share

- we know that the MSD loan was £65m
- £88m - £65m = £23m

I assumed that the club loaned the £23m - which is what has been accepted on this thread for all this time

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Thu May 11, 2023 10:40 pm

Chester Perry wrote:
Thu May 11, 2023 7:23 pm
Two purchases at different prices

first comes to £10m at £2 per share

second is a little short of £88m at almost £17.96 a share

- we know that the MSD loan was £65m
- £88m - £65m = £23m

I assumed that the club loaned the £23m - which is what has been accepted on this thread for all this time
Is there any reason why ALK would create share types based upon where the cash came from and why ALK cash is valued much less than club cash.

By the same token what about the £10 million share capital allotment in Calder Vale?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Thu May 11, 2023 11:18 pm

the share types are the same - it is the price that is different

there are 100,000 shares in total, the first 1000 on incorporation cost just £10

from what I see ALK paid for 51,000 shares with their own funds and 49,000 shares with borrowed funds - I am assuming that was deliberate to retain control if there was a problem with the creditors of the funds

The £10m at CVHL appears to be the same £10m used in this transaction (KCL is the sole shareholder in CVHL) and then passed on to Mike Garlick and co as part of the down payment - all perfectly legitimate and just dependent on the sequence of events on the day it all happened

All this has been discussed in great detail at least twice before on here

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Thu May 11, 2023 11:31 pm

I sometimes think I need to write a long paper on all I the intricacies of the takeover and just leave it online for people to read - I started it once but it is a bit of a monster when you go into all the detail- which is why I tend to cover bits of it in each of my London Clarets articles it is just too confusing for most otherwise as Vegas will testify and I suspect I will be asked questions about it for years to come
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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Fri May 12, 2023 9:46 am

claptrappers_union wrote:
Thu Sep 08, 2022 11:25 pm
Who are the real owners of Burnley Football Club?

American consortium ALK Capital paid £170milion to buy Burnley two years ago in a highly leveraged takeover largely funded by debt and the club’s own money, but the authorities have since received information suggesting that the ultimate owners could be another financial entity based in Jersey.

https://www.dailymail.co.uk/sport/sport ... harge.html
So does everyone remember this - above

Is it possible that Matt Hughes was onto something before any of us? given what I have posted in the last two weeks about Velocity Sports Feeder Ltd

Assumed ALK Structure May 4 2023.png
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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Fri May 12, 2023 2:02 pm

Chester Perry wrote:
Thu May 11, 2023 11:18 pm
the share types are the same - it is the price that is different

there are 100,000 shares in total, the first 1000 on incorporation cost just £10

from what I see ALK paid for 51,000 shares with their own funds and 49,000 shares with borrowed funds - I am assuming that was deliberate to retain control if there was a problem with the creditors of the funds

The £10m at CVHL appears to be the same £10m used in this transaction (KCL is the sole shareholder in CVHL) and then passed on to Mike Garlick and co as part of the down payment - all perfectly legitimate and just dependent on the sequence of events on the day it all happened

All this has been discussed in great detail at least twice before on here

Two questions: why would the where the funds came from affect the shares? The money from the clubs bank account is not debt and the £88 million includes £23 million from the club.

And if they can get £23 million from the club why not the full £33 million and pay off the full £98 million

What differentiates ALK money from any other money?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Fri May 12, 2023 2:28 pm

No idea - only the guesses I have stated - there are others better qualified to provide such insight

incidentally this thread has just gone through 1m views - only the 3rd to do so I think - though Adeola Friday is miles ahead still a long way over the horizon, we helps us keep in reality check as to just how many are wanting to follow this thread

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Burnley1989 » Fri May 12, 2023 2:39 pm

Chester Perry wrote:
Fri May 12, 2023 2:28 pm
No idea - only the guesses I have stated - there are others better qualified to provide such insight

incidentally this thread has just gone through 1m views - only the 3rd to do so I think - though Adeola Friday is miles ahead still a long way over the horizon, we helps us keep in reality check as to just how many are wanting to follow this thread
I suspect its because you and one or two others bump the thread to the top every day. (not a dig by the way, as its an interesting read sometimes) I just mean that your constantly updating it with your research.

As for that Adeola Friday thread, that's just one of life's mysteries to me, haven't clicked on that one for years :lol: I do wonder what other fans think when they come on our board and read that thread.... bloody dingles.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Swizzlestick » Fri May 12, 2023 2:49 pm

Burnley1989 wrote:
Fri May 12, 2023 2:39 pm
I suspect its because you and one or two others bump the thread to the top every day. (not a dig by the way, as its an interesting read sometimes) I just mean that your constantly updating it with your research.

As for that Adeola Friday thread, that's just one of life's mysteries to me, haven't clicked on that one for years :lol: I do wonder what other fans think when they come on our board and read that thread.... bloody dingles.
It'll also have got loads of hits when the takeover speculation was rife between ALK and Elkashashy.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Fri May 12, 2023 5:02 pm

Burnley1989 wrote:
Fri May 12, 2023 2:39 pm
I suspect its because you and one or two others bump the thread to the top every day. (not a dig by the way, as its an interesting read sometimes) I just mean that your constantly updating it with your research.
as I posted last week - It feels like that process is drawing to a close, I cannot think of anything else that I am likely to find in public view - I occasionally have people contact me with information and tip offs, but beyond that it feels done - no matter how many gaps are apparent to myself and others

no doubt this may be a welcome relied to some

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by aggi » Fri May 12, 2023 5:06 pm

Chester Perry wrote:
Thu May 11, 2023 5:48 pm
could it be balances owed to previous clubs
Possibly although I think they were both on their second contract so unlikely.
Chester Perry wrote:
Thu May 11, 2023 5:53 pm
or even the additional expenses we know the game taxes transfers for
Pretty sure they are on the buying clubs
Chester Perry wrote:
Thu May 11, 2023 6:32 pm

or with the income being split is the finance cost split too - meaning the rest will be spread across the 2023 and 2024 accounts
I'd expect the finance cost to all be recognised when we get the money from factoring which was in the 2022 accounts.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by aggi » Fri May 12, 2023 5:10 pm

Chester Perry wrote:
Thu May 11, 2023 4:40 pm
...

The club has thus far contributed at least £96m to the takeover of which over £46m is directly related to financing with MSD and Macquarie (if we believe The Athletic) - a new fixed interest payment of almost £3m pa will make budgeting easier

...
I don't know if I'm missing some nuance of what you are trying to say here but given the club has loaned ALK £114m isn't that a more relevant figure than the £96m you've calculated?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by CoolClaret » Fri May 12, 2023 5:14 pm

Cliff notes on where we're at??

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by aggi » Fri May 12, 2023 5:16 pm

ClaretPete001 wrote:
Fri May 12, 2023 2:02 pm
Two questions: why would the where the funds came from affect the shares? The money from the clubs bank account is not debt and the £88 million includes £23 million from the club.

And if they can get £23 million from the club why not the full £33 million and pay off the full £98 million

What differentiates ALK money from any other money?
I suspect it was more of an admin thing than a complicated scheme (admittedly the whole thing is a complicated scheme).

The shares are all the same in the eyes of the law, regardless of how much they were purchased for.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by aggi » Fri May 12, 2023 5:17 pm

CoolClaret wrote:
Fri May 12, 2023 5:14 pm
Cliff notes on where we're at??
Just been promoted to the Premier League which allays a lot of fears.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Fri May 12, 2023 5:39 pm

aggi wrote:
Fri May 12, 2023 5:10 pm
I don't know if I'm missing some nuance of what you are trying to say here but given the club has loaned ALK £114m isn't that a more relevant figure than the £96m you've calculated?
It works both ways

the statement is derived from an article I am working on for the London Clarets which updates the picture pained in one published in January with the more concrete detail offered in the latest accounts - which only seems fair given that did not account for owner contributions for the 2022 share buying commitments. The numbers have come down significantly from the estimates I had produced previously and that needed to be acknowledged

essentially we can now reasonably estimate the club has contributed £49.8m towards share payments and has a net outlay of £46m or so in repayments, penalties and interest to MSD and interest to Macquarie after the new loan balance was been added 6 months ago - it is from a section on takeover related cash outflows

your right about the £114.8m being more relevant in general conversation about the situation

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Fri May 12, 2023 5:50 pm

aggi wrote:
Fri May 12, 2023 5:06 pm

I'd expect the finance cost to all be recognised when we get the money from factoring which was in the 2022 accounts.
That is what I expect to see in the actual cash picture but given that in Section 18. Creditors: amounts falling due after more than one year confirms that proceeds of factoring are going to be spread over future years is not reasonable that the accounting cost is applied for those proceeds at that time - though there is no way of identifying them as such in 10. Interest payable and similar expenses

Otherwise I am at a loss to explain the missing £901k balance

I appreciate that I may be being naive here

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Fri May 12, 2023 6:34 pm

aggi wrote:
Fri May 12, 2023 5:16 pm
I suspect it was more of an admin thing than a complicated scheme (admittedly the whole thing is a complicated scheme).

The shares are all the same in the eyes of the law, regardless of how much they were purchased for.
Indeed but Chester is using it to justify the view that ALK paid £10 million.

And I can't see it, so I'm wondering what I am missing...

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ClaretPete001 » Fri May 12, 2023 6:35 pm

Chester Perry wrote:
Fri May 12, 2023 2:28 pm
No idea - only the guesses I have stated - there are others better qualified to provide such insight

incidentally this thread has just gone through 1m views - only the 3rd to do so I think - though Adeola Friday is miles ahead still a long way over the horizon, we helps us keep in reality check as to just how many are wanting to follow this thread
It's to the credit of UTC forum that it has scrutinised the deal properly.....

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by claptrappers_union » Fri May 12, 2023 7:20 pm

How many clubs are run like this, how many have found success without any real concerns?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Fri May 12, 2023 7:34 pm

ClaretPete001 wrote:
Fri May 12, 2023 6:34 pm
Indeed but Chester is using it to justify the view that ALK paid £10 million.

And I can't see it, so I'm wondering what I am missing...
I am saying the £10m was from ALK because I cannot account for it from any other source - the rest adds up with club accounts and all the other information I have had and shared.

you are welcome to feel free to overlay the different information sources and aspects that I have shared and present a different picture, I am willing to listen to alternatives, just be aware that my picture in its fundamental form has stood up to various and repeated interrogation by others and myself a number of times now (not that that confirms it as being right)

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Fri May 12, 2023 7:35 pm

claptrappers_union wrote:
Fri May 12, 2023 7:20 pm
How many clubs are run like this, how many have found success without any real concerns?
It is increasingly becoming normalised

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by aggi » Fri May 12, 2023 7:42 pm

claptrappers_union wrote:
Fri May 12, 2023 7:20 pm
How many clubs are run like this, how many have found success without any real concerns?
Man Utd is the obvious example.

Don't think there are many successful (although obviously defining successful is tough) clubs who started off with a leveraged buyout.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Sat May 13, 2023 10:31 am

Chester Perry wrote:
Fri May 12, 2023 7:34 pm
I am saying the £10m was from ALK because I cannot account for it from any other source - the rest adds up with club accounts and all the other information I have had and shared.

you are welcome to feel free to overlay the different information sources and aspects that I have shared and present a different picture, I am willing to listen to alternatives, just be aware that my picture in its fundamental form has stood up to various and repeated interrogation by others and myself a number of times now (not that that confirms it as being right)
you know sometimes when you have accumulated so much information that you know you are right but cannot remember why you know - here we have an example of the point

I knew for certain ALK/VSL had put money into the takeover - but just couldn't remember why - well now I can

this is the offer Letter to the small shareholders - which provided some detail about the takeover acquisition in including this snippet

1.3. The Acquisition has been funded from three sources:
a. equity investment from VS owners and investors;
b. a loan from MSD UK Holdings Limited a company incorporated in England and Wales with company number 12701276 and whose registered office address is at C/O Legalinx Limited Churchill House, Churchill Way, Cardiff, United Kingdom, CF10 2HH to CVHL (the “Third Party Loan”); and
c. cash from Burnley Football & Athletic Company Limited (“BFC”) (this cash being the “BFC Funds”).

and to prove I have access to the actual Letter - whose confidentiality is now very much out of date

Small Shareholder offer letter.JPG
Small Shareholder offer letter.JPG (131.78 KiB) Viewed 1869 times

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Wed May 17, 2023 10:21 am

aggi wrote:
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
Velocity Sports Partners Limited will now to be officially dissolved as of May 23 2023

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

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by aggi » Mon May 22, 2023 12:14 pm

Well ALK Capital Ltd have finally filed accounts. Can't see them being very exciting but wonder whether we'll see some others coming soon.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Mon May 22, 2023 12:24 pm

aggi wrote:
Mon May 22, 2023 12:14 pm
Well ALK Capital Ltd have finally filed accounts. Can't see them being very exciting but wonder whether we'll see some others coming soon.
Just 11 months late to file accounts for a small company for a period end date of September 30 2021

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

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by aggi » Mon May 22, 2023 12:28 pm

I'm a bit surprised they aren't dormant. I wonder what business has been done to mean they couldn't file those?

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Mon May 22, 2023 12:30 pm

aggi wrote:
Mon May 22, 2023 12:28 pm
I'm a bit surprised they aren't dormant. I wonder what business has been done to mean they couldn't file those?
that is the most intriguing question - though I am far from convinced that we will get too much information about that

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by ecc » Mon May 22, 2023 12:36 pm

My God that structure is complicated.

It would worry me a lot if I wasn't aware of the fact that such ownership structures seem to be the norm these days.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Mon May 22, 2023 12:41 pm

ecc wrote:
Mon May 22, 2023 12:36 pm
My God that structure is complicated.

It would worry me a lot if I wasn't aware of the fact that such ownership structures seem to be the norm these days.
there is a mistake in the diagram that no-one has spotted

the new UK company at registered at Companies House is called Velocity Capital (UK) Holdings Ltd not Velocity Sport (UK) Holdings Ltd

so corrected image is this one

ALK Known Ownership Structure v 8.png
ALK Known Ownership Structure v 8.png (54.3 KiB) Viewed 1283 times

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Devils_Advocate » Mon May 22, 2023 12:47 pm

Chester Perry wrote:
Mon May 22, 2023 12:41 pm
there is a mistake in the diagram that no-one has spotted
I noticed but I didn't bother mentioning it as I thought it was pretty obvious.
This user liked this post: Duffer_

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by StayingDown4Ever » Mon May 22, 2023 2:41 pm

Chester Perry wrote:
Fri May 12, 2023 2:28 pm
No idea - only the guesses I have stated - there are others better qualified to provide such insight

incidentally this thread has just gone through 1m views - only the 3rd to do so I think - though Adeola Friday is miles ahead still a long way over the horizon, we helps us keep in reality check as to just how many are wanting to follow this thread
900,000 of which were probably you!

Keep up the good work on the thread.

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Re: ALK Capital or Farnell/Elkashashy takeover

Post by Chester Perry » Tue May 23, 2023 11:42 am

aggi wrote:
Mon May 22, 2023 12:14 pm
Well ALK Capital Ltd have finally filed accounts. Can't see them being very exciting but wonder whether we'll see some others coming soon.
The ALK Capital Limited accounts are now available to view

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

signed off May 5 2023 - 54 days before the 2022 accounts for the same are due to be posted

Auditors are BDO as you would expect

There is nothing about what they do bar this statement in the Directors report

Principal Activity

The principal activity of the company is to provide for GBP and EUR denominated transactions on behalf of its parent, ALK Capital LLC


It has £35,019.00 in assets a(mainly cash and is owed £35,009.00 in the following 12 months

and that is about it as the detail goes


so what is there to justify being almost 11 months late in the filing? because I see nothing that would have taken more than an hour or two for a professional to make this report

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