ALK Capital or Farnell/Elkashashy takeover

[ClaretPete001]

this is how I see it pictorially (if I can get this to work)

Thanks Chester but we started off from the premise that we don't know who owns ALK Capital LLC. And the clubs web site suggests that ALK seems to have some controlling interests over the voting rights of VSL so while you maybe right I don't see how you can know for sure.

I am trying to differentiate what is known and what is best guess from the evidence available.

Both are valuable, however, if the EFL are investigating (a big if) - it maybe the relationship between ALK Capital LLC and VSL.

Note

Actually, I've just notice you've put other investors above VSL so fair enough.

[Chester Perry]

Who owns the club Aggi ALK Capital LLC or VSL because I can't see that it is clear.

While currently it is reasonable to argue that ALK Capital LLC is the Ultimate owner is better in the long run to focus on VSL because that is where it appears in ay new investor (as far as the club is concerned is likely to appear, though not to us mere mortals as a result of the opacity of public record in the jurisdiction of Jersey. we have to trust that the regulations of the English game's authorities then see the club maintain up to date records on its company details on the clubs website

[Tall Paul]

this is how I see it pictorially (if I can get this to work)

Doesn't the club statement on the website indicate that both Velocity Sports Partners LLC and ALK Capital LLC own over 25% of VSL?

In any case, I think the statements in the accounts and on the website clearly state that Pace controls the shares in VSL which, by implication means that he has a controlling shareholding in ALK.

[Chester Perry]

Doesn't the club statement on the website indicate that both Velocity Sports Partners LLC and ALK Capital LLC own over 25% of VSL?

I think that can be interpreted in different ways

do each own over 25% of the club
or
does the fact that VSP is stated to be an arm of ALK Capital LLC mean that over 25% of VSL is owned/controlled by VSP which is in itself owned/controlled by ALK Capital LLC
- I went for the latter

I will say that it is not unreasonable to think there may be other investors in VSP - possibly even Malcolm Jenkins

What we do not know is if ALK Capital or VSP have other Investments elsewhere in the world, though that seems unlikely given how ALK like to publicise their investments

[ClaretPete001]

Doesn't the club statement on the website indicate that both Velocity Sports Partners LLC and ALK Capital LLC own over 25% of VSL?

In any case, I think the statements in the accounts and on the website clearly state that Pace controls the shares in VSL which, by implication means that he has a controlling shareholding in ALK.

The logic of the clubs statement is that ALK owns VSL and therefore you can't infer that Pace has a controlling shareholding in ALK.

[Tall Paul]

The logic of the clubs statement is that ALK owns VSL and therefore you can't infer that Pace has a controlling shareholding in ALK.

Of course we can. How else can Pace control VSL if it's not through his ownership/control of ALK?

[Chester Perry]

Of course we can. How else can Pace control VSL if it's not through his ownership/control of ALK?

That is my take too

[aggi]

this is how I see it pictorially (if I can get this to work)

I read it as ALK Capital LLC and VSP LLC own > 25% each. The other investors may then be in VSP and Pace et al in ALK LLC. It isn't particularly clear though.

[aggi]

The logic of the clubs statement is that ALK owns VSL and therefore you can't infer that Pace has a controlling shareholding in ALK.

For Pace to be the ultimate controlling party (per the accounts) then he must have a controlling shareholding (through ownership or other methods) in ALK

[ClaretPete001]

Of course we can. How else can Pace control VSL if it's not through his ownership/control of ALK?

You are starting with an assumption and then creating a reality to make that assumption work.

My problem is I have yet to ascertain how you know Pace controls VSL?

[Chester Perry]

For Pace to be the ultimate controlling party (per the accounts) then he must have a controlling shareholding (through ownership or other methods) in ALK

My take after much contemplation and examining of other information and press reports was ultimately swayed by the Offer Letter to the small shareholders - which many have not been privy to - this is the relevant section

2. WHO IS VS?

2.1. VS forms part of Velocity Sports Partners Group, which is the sports investment division of ALK Capital LLC (“ALK”). The members of ALK are an experienced team of investment professionals who specialise in the operation of modern sports, media and entertainment organisations.

2.2. One the founding members of ALK is new Chairman Alan Pace. Alan brings 20 years in the financial services industry and over a decade of sports management experience to Burnley. A dual British American national, he was formally a Managing Director and Global Head of Sales for Securities Services at Citi, responsible for overseeing a multibillion-dollar division. Alan is a former partner at SCP Worldwide LLC – owner of sports, entertainment and media properties – and a previous CEO of Major League Soccer franchise Real Salt Lake, where he oversaw the transformation of a consistently last-place team to winning the 2009 MLS Cup.

2.3. All the other founding members of ALK have significant experience of both investing in and managing complex business, elite sports, and financial organisations. The ALK team includes (i) Stuart Hunt, who brings over 20 years of experience in managing and restructuring sports and media groups, success both in financial services for JPMorgan and a variety of hedge funds on Wall Street, and has also built a restaurant business which operates across 70+ locations in the US and UK and employs nearly 2,000 members of staff; (ii) Mike Smith, with over 20 years as an experienced advisor having represented professional American Football leagues and some of the largest companies and most successful entrepreneurs in the world; and (iii) Morgan Edwards, with involvement in more than 400 mergers and acquisitions, totalling more than $40 Billion, and acting as Chief Financial Officer to help develop a number of start-ups into successful businesses.

for information SCP Worldwide LLC is Dave Checketts operation * it is much harder to find info on that than ALK Capital LLC - it doesn't even have a website

[ClaretPete001]

For Pace to be the ultimate controlling party (per the accounts) then he must have a controlling shareholding (through ownership or other methods) in ALK

The accounts assume VSL is the parent company and that Alan Pace is the controlling party of VSL. It says nothing about ALK nor can you infer anything from the accounts about ALK.

Either the club website is wrong or the accounts are ... or ... there is some technical aspect of this I'm not getting and no one is enunciating.

[Tall Paul]

You are starting with an assumption and then creating a reality to make that assumption work.

My problem is I have yet to ascertain how you know Pace controls VSL?

It says so in the accounts and the statement on the website.

[Big Vinny K]

It says so in the accounts and the statement on the website.

But other than it saying so in the accounts and on the statement on their website how do you know ?

[ClaretPete001]

It says so in the accounts and the statement on the website.

It doesn't ..on the club web site it says ALK has the controlling interest in VSL.

The accounts assume that VSL is the parent company, which appears to be wrong. And that Alan Pace has the controlling interest in it.

You could infer one from the other but I'm just pondering the implications of that and whether there could be share variations, which would make the two make sense.

But it's beyond me..

[aggi]

The accounts assume VSL is the parent company and that Alan Pace is the controlling party of VSL. It says nothing about ALK nor can you infer anything from the accounts about ALK.

Either the club website is wrong or the accounts are ... or ... there is some technical aspect of this I'm not getting and no one is enunciating.

It says that Pace is the ultimate controlling party of VSL. That takes it further up the chain.

ALK Capital LLC and Velocity Sports Partners LLC are the only persons or entities owning 25% or greater of Velocity Sports Limited so in order for Pace to be the ultimate controlling party of VSL he must control those entities.

[ClaretPete001]

It says that Pace is the ultimate controlling party of VSL. That takes it further up the chain.

ALK Capital LLC and Velocity Sports Partners LLC are the only persons or entities owning 25% or greater of Velocity Sports Limited so in order for Pace to be the ultimate controlling party of VSL he must control those entities.

True by why not state that explicitly on the club's web site?

Why not just give the shareholding of ALK Capital LLC and cite that on the accounts?

Why say: "ALK Capital LLC holds and controls the voting rights of Velocity Sports Limited, and Alan Pace and Michael Smith are each directors."

And what has happened to Stuart Hunt?

Is it possible for someone to own shares that hold voting rights while someone else owns a majority of normal shares?

This is what I'm trying to get at albeit somewhat inarticulately.

[aggi]

True by why not state that explicitly on the club's web site?

Why not just give the shareholding of ALK Capital LLC and cite that on the accounts?

Why say: "ALK Capital LLC holds and controls the voting rights of Velocity Sports Limited, and Alan Pace and Michael Smith are each directors."

And what has happened to Stuart Hunt?

Is it possible for someone to own shares that hold voting rights while someone else owns a majority of normal shares?

This is what I'm trying to get at albeit somewhat inarticulately.

Yes. Control is about who is able to make the decisions not ownership (although generally the person who has ownership wants to make the decisions).

[ClaretPete001]

Yes. Control is about who is able to make the decisions not ownership (although generally the person who has ownership wants to make the decisions).

Unless VSL is just a shell company designed for tax purposes and there are investors who want to remain anonymous for whatever reason: tax purposes etc...

Is that not a possibility?

[Chester Perry]

There is another Macquarie Invoice advancement loan - Nathan Collins sale

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

advance £15m before costs a chunk of which will go to Stoke

[Chester Perry]

I expect Dwight McNeil sale to go the same way - big stage payment required this month

[Paul Waine]

Unless VSL is just a shell company designed for tax purposes and there are investors who want to remain anonymous for whatever reason: tax purposes etc...

Is that not a possibility?

Hi Pete, thought it might be helpful to look at the IRS (i.e. US tax authorities, for anyone who doesn't know IRS) treatment of LLCs:

A Limited Liability Company (LLC) is an entity created by state statute. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner’s tax return (a disregarded entity). A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and elects to be treated as a corporation. For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form 8832 and elects to be treated as a corporation. However, for purposes of employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity.

www.irs.gov/businesses/small-businesses ... artnership

My search term: is a llc a partnership for US tax purposes?

My explanation:

So, if we assume that Velocity Sports Partnership LLC has not made the Form 8832 filing, all investors in VSP LLC will be taxed as partners in VSP LLC, in other words, each investor will have their own personal tax obligation for their share of the earnings of VSP LLC, and these are added to all their other personal earnings and taxed accordingly. VSP LLC, of course, also has the benefit of limited liability, so that the investors cannot suffer losses beyond their own personal investment in VSP LLC.

ALK is the managing partner of VSP LLC.

LLC owners, typically referred to as members, don't always want to have an active role in business operations. The managing partner of an LLC takes care of day-to-day business activities and has the authority to act on behalf of the company. Non-members can serve as managers and the LLC can have as many managing partners as it wishes.

https://bizfluent.com/facts-5991193-def ... r-llc.html

Again, my explanation:

VSP LLC is the entity that investors become members (or partners) in and ALK Capital LLC is the managing partner of VSP LLC.

I differ from CP's "organigram" (I don't like that word, I prefer "organisation chart"). The only investors in VS Jersey will all be members, partners and investors in VSP LLC, including ALK Capital LLC. The US tax treatment of VSP LLC meets the tax requirements of all the investors in VSP LLC because that all will be taxed according to their own personal circumstances. Of course, they all benefit from the personal privacy provided under Delaware filing requirements. We shouldn't, however, consider Delaware as a "tax haven" for anyone, whether they are a US individual or a non-US individual.

[Paul Waine]

There is another Macquarie Invoice advancement loan - Nathan Collins sale

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

advance £15m before costs a chunk of which will go to Stoke

Are we sure that Stoke will also receive a share of the Macquarie advance to BFC? Reading the document gives me the impression that Wolves will pay each of the three £5m instalments on the respective due dates to the Football League transfer fee clearing account and Stoke's sell-on fees are deducted at that stage and paid to Stoke from the FL transfer fee clearing account. Schedule 1, pages 17 - 19.

[Chester Perry]

Are we sure that Stoke will also receive a share of the Macquarie advance to BFC? Reading the document gives me the impression that Wolves will pay each of the three £5m instalments on the respective due dates to the Football League transfer fee clearing account and Stoke's sell-on fees are deducted at that stage and paid to Stoke from the FL transfer fee clearing account. Schedule 1, pages 17 - 19.

I was always under the impression that monies were paid as they came in * in what you describe the Stoke monies would be discounted from the loan advancement - makes some sense, at least we are not paying to advance Stoke's income if you are correct

[ClaretPete001]

I differ from CP's "organigram" (I don't like that word, I prefer "organisation chart"). The only investors in VS Jersey will all be members, partners and investors in VSP LLC, including ALK Capital LLC. The US tax treatment of VSP LLC meets the tax requirements of all the investors in VSP LLC because that all will be taxed according to their own personal circumstances. Of course, they all benefit from the personal privacy provided under Delaware filing requirements. We shouldn't, however, consider Delaware as a "tax haven" for anyone, whether they are a US individual or a non-US individual.

Thanks Paul.

It is clear from the club's website that not all the members of ALK Capital LLC are investors in VS Jersey because Hunt is conspicuously absent from the clubs web site statement regarding ALKs controlling interest in VS (Jersey): unless the web site is incorrect.

As far as I understood it Chester's Organisational Chartagram suggests there are other investors involved in VSL (Jersey) but I assumed that he might be suggesting they are also part of ALK albeit an unknown quantity - Chester will have to clear that up. Alternatively, ALK may not be the top of the chain and the unknown quantity on Chester Chartagram could be above ALK.

And I think your last point is pertinent because they all benefit from the privacy of Delaware filing up to the point where they want to operate under the auspices of a new tax jurisdiction, which would presumably be exactly the point at which complex share rights would be required and nominee shareholders appointed.

Again ALK have only got themselves to blame for the media interest because of the opacity of their statements.

It could well be that ALK has been entirely transparent in its dealings with the EFL and it is the reference of VSL on the accounts that has raised some concerns.

That would explain the possible interest of the EFL and the Daily Mail as well as the direction of travel of the article in the DM that there is a possible Jersey connection unbeknown to the EFL.

[Chester Perry]

I was always under the impression that monies were paid as they came in * in what you describe the Stoke monies would be discounted from the loan advancement - makes some sense, at least we are not paying to advance Stoke's income if you are correct

Reading that now it appears what you say is only applicable to the sell-lm clause portion not the original transfer fee of which £9m was outstanding at the end of May 2022

[Paul Waine]

Reading that now it appears what you say is only applicable to the sell-lm clause portion not the original transfer fee of which £9m was outstanding at the end of May 2022

Yes, I was only thinking about sell-on amounts due to Stoke from the profit made by BFC on the transfer of NC to Wolves. Any amount that is due to Stoke on the transfer of NC from Stoke to BFC will be paid when due, and could very well be funded to the extent required from the Macquarie advance.

[Paul Waine]

Thanks Paul.

It is clear from the club's website that not all the members of ALK Capital LLC are investors in VS Jersey because Hunt is conspicuously absent from the clubs web site statement regarding ALKs controlling interest in VS (Jersey): unless the web site is incorrect.

As far as I understood it Chester's Organisational Chartagram suggests there are other investors involved in VSL (Jersey) but I assumed that he might be suggesting they are also part of ALK albeit an unknown quantity - Chester will have to clear that up. Alternatively, ALK may not be the top of the chain and the unknown quantity on Chester Chartagram could be above ALK.

And I think your last point is pertinent because they all benefit from the privacy of Delaware filing up to the point where they want to operate under the auspices of a new tax jurisdiction, which would presumably be exactly the point at which complex share rights would be required and nominee shareholders appointed.

Again ALK have only got themselves to blame for the media interest because of the opacity of their statements.

It could well be that ALK has been entirely transparent in its dealings with the EFL and it is the reference of VSL on the accounts that has raised some concerns.

That would explain the possible interest of the EFL and the Daily Mail as well as the direction of travel of the article in the DM that there is a possible Jersey connection unbeknown to the EFL.

Pete, what I'm trying to explain is that there is ALK Capital LLC who is the managing partner of VSP LLC. In addition, VSP LLC can have a number of other investors. We don't know many names, Malcolm Jenkins will be one, I assume, as he was introduced to BFC fans as an investor in the club. I've suggested before on this mb, that it is possible that Mike Garlick has invested in VSP LLC - based on the information disclosed and not disclosed in his Clarets Go Large accounts. CP has said that ALK have not had as much success as they hoped in adding other investors. If and when they exist they will all invest as partners in VSP LLC.

Velocity Sports Jersey will have either only one shareholder, VSP LLC or no more than two shareholders, VSP LLC and ALK Capital LLC. There won't be any other investors in Velocity Sports Jersey.

There's no need for any "nominee shareholders" or any other "complex share rights..." The structure I describe is very common in all sorts of US business activities. I don't think ALK/Alan Pace has any "opacity of their statements." It's just some UK sports media not seeking to understand common US business structures. I guess you don't get many clicks for a "nothing to see, here" story.

UTC

[aggi]

Unless VSL is just a shell company designed for tax purposes and there are investors who want to remain anonymous for whatever reason: tax purposes etc...

Is that not a possibility?

It's possible. Convincing investors to buy into a football club without control is a hard sell but it may be the case.

[NewClaret]

£15m of the Collins fee now factored by Macquarie:

https://mobile.twitter.com/KieranMaguir ... 5927277568

[Chester Perry]

£15m of the Collins fee now factored by Macquarie:

https://mobile.twitter.com/KieranMaguir ... 5927277568

posted up the thread and there has been a little discussion about it - sell on fee not advanced but would appear that some of the advanced monies will be used to pay off the outstanding transfer fee

[Paul Waine]

£15m of the Collins fee now factored by Macquarie:

https://mobile.twitter.com/KieranMaguir ... 5927277568

Discussion above.

[NewClaret]

posted up the thread and there has been a little discussion about it - sell on fee not advanced but would appear that some of the advanced monies will be used to pay off the outstanding transfer fee

Sorry CP/PW, had missed it.

[ClaretPete001]

Pete, what I'm trying to explain is that there is ALK Capital LLC who is the managing partner of VSP LLC. In addition, VSP LLC can have a number of other investors. We don't know many names, Malcolm Jenkins will be one, I assume, as he was introduced to BFC fans as an investor in the club. I've suggested before on this mb, that it is possible that Mike Garlick has invested in VSP LLC - based on the information disclosed and not disclosed in his Clarets Go Large accounts. CP has said that ALK have not had as much success as they hoped in adding other investors. If and when they exist they will all invest as partners in VSP LLC.

Velocity Sports Jersey will have either only one shareholder, VSP LLC or no more than two shareholders, VSP LLC and ALK Capital LLC. There won't be any other investors in Velocity Sports Jersey.

There's no need for any "nominee shareholders" or any other "complex share rights..." The structure I describe is very common in all sorts of US business activities. I don't think ALK/Alan Pace has any "opacity of their statements." It's just some UK sports media not seeking to understand common US business structures. I guess you don't get many clicks for a "nothing to see, here" story.

UTC

Indeed Paul, but at the very least you must be able to see how the club lends itself to such stories.

The news story likely comes from the fact that the auditors to the accounts have cited the wrong parent company. The account also suggest that Alan Pace is only "considered" to be the controlling party.

The clubs web sites goes through hoops to lead the reader to believe that VSL is the controlling party even giving out shareholdings while actually saying something other.

The club then has to issue a statement to contradict it's own audited accounts to say that ALK LLC is the owning and controlling party of the club but does not say who owns and controls ALK LLC.

So, I go back to my original question - does anyone know who owns and controls the club because the accounts are wrong and while the club website says it is ALK LLC - it conspicuously does not say who owns and control ALK LLC, which seems odd if it is indeed Alan Pace.

[Tall Paul]

So, I go back to my original question - does anyone know who owns and controls the club because the accounts are wrong and while the club website says it is ALK LLC - it conspicuously does not say who owns and control ALK LLC, which seems odd if it is indeed Alan Pace.

The accounts aren't wrong. Alan Pace controls the club.

[ClaretPete001]

The accounts aren't wrong. Alan Pace controls the club.

Keeping repeating the same thing does not make it so.

The Daily Mail has an article, which suggests that there is a company in Jersey who owns the club. We know it is likely referring to VSL (Jersey) because it says in the audited accounts that VSL (Jersey) is the club's parent company and Alan Pace is considered to have the controlling interest of VSL (Jersey).

The problem is the club has refuted the Daily Mail's article both in a press release (albeit cited as "sources at the club") and on the club's web site saying it is ALK LLC who owns the club.

It is not me who is saying the audited accounts are wrong it is the club

Moreover the club differentiates between the voting rights of ALK LLC and the shareholding of VSL (Jersey) and then refers not to "significant control" of Burnley Football Club but to "significant interest".

It's all a bit odd isn't it. I mean it's not a secret that Alan Pace owns the club why not just say ALK LLC owns the club and detail the shareholding of ALK LLC or at least detail Alan pace's shareholding.

It could just be careless copy on the web site but I go back to my point above - it's hardly surprising the media "sniffs" around the ownership of the club.

[Nonayforever]

On his wiki Web page, it states Dave Checketts is both an investor and part owner in Burnley football club

[Paul Waine]

Indeed Paul, but at the very least you must be able to see how the club lends itself to such stories.

The news story likely comes from the fact that the auditors to the accounts have cited the wrong parent company. The account also suggest that Alan Pace is only "considered" to be the controlling party.

The clubs web sites goes through hoops to lead the reader to believe that VSL is the controlling party even giving out shareholdings while actually saying something other.

The club then has to issue a statement to contradict it's own audited accounts to say that ALK LLC is the owning and controlling party of the club but does not say who owns and controls ALK LLC.

So, I go back to my original question - does anyone know who owns and controls the club because the accounts are wrong and while the club website says it is ALK LLC - it conspicuously does not say who owns and control ALK LLC, which seems odd if it is indeed Alan Pace.

Pete, these things are only mysteries or question marks for those who (1) are looking to discover something amiss, (2) are not knowledgeable about the language of accounting statements and (3) have not considered the nature of LLCs under US state law.

BFCHL accounts, Note 27 Controlling party:

On 30 December 2020, a majority shareholding in Burnley FC Holdings Limited was acquired by Calder
Vale Holdings Limited. The ultimate parent company of the new group is Velocity Sports Limited, a
company incorporated in Jersey, of which Alan Pace is considered to be an ultimate controlling party.


All England and Wales accounting reports require a statement on the Controlling party.

There's nothing mysterious, hidden, obscured or misleading with the phrase "considered to be an ultimate controlling party." That's the appropriate, correct and accurate accounting language.

The accounts state "controlling party" rather than "owner" because the question is "who controls," seeking to avoid situations where someone can be reported as legally owning, while seeking to disguise who actually "controls." (Abromavich and Chelsea is a recent case in point).

You've got to remember that ALK Capital LLC and Velocity Sports Partners LLC are both partnerships, Velocity Sports Partners LLC being a unit of ALK Capital LLC. Neither entity is a corporation in US state law, so neither can be described as the "parent company" of BFCHL (or any other entity). Alan Pace is the managing partner of ALK Capital LLC. Hence "an ultimate controlling party" of BFCHL.

[Paul Waine]

Keeping repeating the same thing does not make it so.

It is not me who is saying the audited accounts are wrong it is the club

Moreover the club differentiates between the voting rights of ALK LLC and the shareholding of VSL (Jersey) and then refers not to "significant control" of Burnley Football Club but to "significant interest".

Where does the club say "the audited accounts are wrong?"

If they've made such a statement we should expect an amended set of accounts to be filed.

[aggi]

Indeed Paul, but at the very least you must be able to see how the club lends itself to such stories.

The news story likely comes from the fact that the auditors to the accounts have cited the wrong parent company. The account also suggest that Alan Pace is only "considered" to be the controlling party.

The clubs web sites goes through hoops to lead the reader to believe that VSL is the controlling party even giving out shareholdings while actually saying something other.

The club then has to issue a statement to contradict it's own audited accounts to say that ALK LLC is the owning and controlling party of the club but does not say who owns and controls ALK LLC.

So, I go back to my original question - does anyone know who owns and controls the club because the accounts are wrong and while the club website says it is ALK LLC - it conspicuously does not say who owns and control ALK LLC, which seems odd if it is indeed Alan Pace.

An LLC isn't a company so can't be the parent company. The accounts and the website are aimed at different people with different requirements.

Edit: looks like Paul was before me with the same explanation.

[NewClaret]

Pete, these things are only mysteries or question marks for those who (1) are looking to discover something amiss, (2) are not knowledgeable about the language of accounting statements and (3) have not considered the nature of LLCs under US state law.

Think you’re spot on here Paul.

For some reason, there are some in the media looking for something amiss. The DM mainly. Why, I’m not sure, I can only assume they have a disgruntled source looking to create some bad press.

Only this time the DM journo fell flat on his face because he didn’t back it up with any research, even know about VSL or the information transparently publishes about VSL.

The twitterati did give him some pelters though, so he might not do it again so hastily.

[ClaretPete001]

Pete, these things are only mysteries or question marks for those who (1) are looking to discover something amiss, (2) are not knowledgeable about the language of accounting statements and (3) have not considered the nature of LLCs under US state law.

BFCHL accounts, Note 27 Controlling party:

On 30 December 2020, a majority shareholding in Burnley FC Holdings Limited was acquired by Calder
Vale Holdings Limited. The ultimate parent company of the new group is Velocity Sports Limited, a
company incorporated in Jersey, of which Alan Pace is considered to be an ultimate controlling party.


All England and Wales accounting reports require a statement on the Controlling party.

There's nothing mysterious, hidden, obscured or misleading with the phrase "considered to be an ultimate controlling party." That's the appropriate, correct and accurate accounting language.

The accounts state "controlling party" rather than "owner" because the question is "who controls," seeking to avoid situations where someone can be reported as legally owning, while seeking to disguise who actually "controls." (Abromavich and Chelsea is a recent case in point).

You've got to remember that ALK Capital LLC and Velocity Sports Partners LLC are both partnerships, Velocity Sports Partners LLC being a unit of ALK Capital LLC. Neither entity is a corporation in US state law, so neither can be described as the "parent company" of BFCHL (or any other entity). Alan Pace is the managing partner of ALK Capital LLC. Hence "an ultimate controlling party" of BFCHL.

Paul, that's all I was trying to do ascertain where the Daily Mail story comes from and clarify the relationship between ALK LLC and VSL (Jersey). I don't just dismiss stuff out of hand.

I asked the simple questions above (to anyone who might know): who is the owner of Burnley FC and how do you know?

ALK LLC own and control the voting rights of VSL (Jersey). I'm not a corporate lawyer so I don't know how the role of managing partner manifests itself in US and UK law. And I don't know if Alan Pace is the Managing Partner of ALK CAPITAL LLC or how anyone would know that...!

On the club web site it cites Alan Pace as having "significant interest" not "significant control" and again I'm not a corporate lawyer but as far as I am aware there is statutory guidance to differentiate between the two albeit I don't know whether that is enacted in practice.

I asked Aggi whether it was possible that LLCs could be setup such that voting rights are differentiated from normal shares to the extent that the control and ownership of ALK LLC could not be inferred from the shareholding of VSL (Jersey) and Aggi seemed to suggest it that it could - in other words you cannot infer ownership of ALK from the shareholding of VSL.

Of course, I all think Alan Pace owns and controls ALK LLC and therefore Burnley Football Club but I couldn't point to anything to evidence that view point.

You might be able to ..!

[ClaretPete001]

Think you’re spot on here Paul.

For some reason, there are some in the media looking for something amiss. The DM mainly. Why, I’m not sure, I can only assume they have a disgruntled source looking to create some bad press.

Only this time the DM journo fell flat on his face because he didn’t back it up with any research, even know about VSL or the information transparently publishes about VSL.

The twitterati did give him some pelters though, so he might not do it again so hastily.

To be fair the substance of the story is: "The Premier League began making enquiries last season and the matter has been passed on to the EFL following the club’s relegation.

It's a either the truth or a lie. Research has nothing to do with it.

[ClaretPete001]

And one final point because I forgot. I'm not sure of the appropriate language regarding controlling parties and audited accounts but I have looked at a number of clubs over a period of time and the language has seemed to vary.

For example Blackburn Rovers : Ultimate control is held by blah, blah and blah. No use of the word "considered".

Balckpool is the same: The ultimate controlling party is Mr Blah. Albeit you could be right that the word "considered" is used extensively and it just hasn't entered my consciousness for whatever reason.

[Chester Perry]

Paul, that's all I was trying to do ascertain where the Daily Mail story comes from and clarify the relationship between ALK LLC and VSL (Jersey). I don't just dismiss stuff out of hand.

I asked the simple questions above (to anyone who might know): who is the owner of Burnley FC and how do you know?

.... And I don't know if Alan Pace is the Managing Partner of ALK CAPITAL LLC or how anyone would know that...!

This one is relatively straight forward because ALK Capital LLC tell us - it comes from ALK Capital LLC's own press release

see the 'About ALK Capital' section

https://alkcapital.com/news-media/
https://secureservercdn.net/166.62.106. ... ion-v6.pdf

[GodIsADeeJay81]

To be fair the substance of the story is: "The Premier League began making enquiries last season and the matter has been passed on to the EFL following the club’s relegation.

It's a either the truth or a lie. Research has nothing to do with it.

If the PL has begun making enquiries, after passing the owners as fit and proper persons, that would suggest the PL doesn't have a clue what it's doing ...

[ClaretPete001]

This one is relatively straight forward because ALK Capital LLC tell us - it comes from ALK Capital LLC's own press release

see the 'About ALK Capital' section

https://alkcapital.com/news-media/
https://secureservercdn.net/166.62.106. ... ion-v6.pdf

Paul uses it in the sense of a legal term to denote someone who would own the majority of the voting shares of ALK LLC. I don't know whether its use generally would infer that...!

I also note it's the same press release that announces ALK has a strategic investment in an AI company and is the first company to use AI in the PL so I'm somewhat cautious in how to interpret press releases just as I would be cautious in how I read a Daily Mail article.

[ClaretPete001]

If the PL has begun making enquiries, after passing the owners as fit and proper persons, that would suggest the PL doesn't have a clue what it's doing ...

I guess if you are coming from the perspective the Daily Mail would not write outright lies about the club and then you would have to assume the PL is incompetent. Unless of course they have seen something, which contradicts the audited accounts. I doubt they have or even that there is an investigation.

[claretonthecoast1882]

Pete you are coming across as desperate to find something wrong going on

[ClaretPete001]

Pete you are coming across as desperate to find something wrong going on

Its possibly because the default stance of many on here is that the Daily Mail tells outright lies, the PL is incompetent, everyone is against us etc etc so you go round and round in circles.

But also I'm rather hoping there is a big money backer behind ALK......!