ALK Capital or Farnell/Elkashashy takeover

[Chester Perry]

looks like more changes to the articles of association at the club are coming through - I suspect in line with those at the holding company, just housekeeping in reality though interesting that the signatory was Mile Garlick on these changes, on the day of takeover.

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

[aggi]

Obviously not the same but a somewhat relevant read from the world of supermarkets
https://www.bbc.co.uk/news/business-56085128

[Nonayforever]

Obviously not the same but a somewhat relevant read from the world of supermarkets
https://www.bbc.co.uk/news/business-56085128

This method is fine for a short while, it's a form of pyramid selling.
It works untill the debt is so huge that it comes tumbling down as happened to Woolworths a few years back. A good profitable company but not profitable enough to survive a hiccup.

[Chester Perry]

Obviously not the same but a somewhat relevant read from the world of supermarkets
https://www.bbc.co.uk/news/business-56085128

Interesting that you posted that as I have seen that deal and the one for our club posted together a couple of times in the financial press when talking about risky leveraged buyouts

[aggi]

This method is fine for a short while, it's a form of pyramid selling.
It works untill the debt is so huge that it comes tumbling down as happened to Woolworths a few years back. A good profitable company but not profitable enough to survive a hiccup.

Or you need the company to keep increasing in value (whilst paying the costs of debt).

[TsarBomba]

https://twitter.com/weetabix/status/135 ... 65059?s=19

I've said a few times that the clubs social media needs to actually start doing stuff on places like twitter.

Above is an example of how to do it and I'm not just referring to the original tweet.

If our twitter account manager was on the ball, they could've made reference to Dyche preferring his bowl of worms to the weetabix /beans concoction.

Wholeheartedly agree.

It’s really not very hard to either generate a trend on Twitter, or jump on the back of one.

You only need to look at the recent Dyche interview on ‘lookilikies’, it was everywhere within a few hours, and it was still being discussed on the Totally Football Show podcast 3-4 days later.

Our Twitter outage is so bland, that even I don’t take much notice. Apart from match day. And if Burnley fans are disinterested, what hope do you have of getting non-BFC fans to follow.

[Jacko]

BBC article: https://www.bbc.co.uk/sport/football/56089037

[GodIsADeeJay81]

Weird how there is more noise being made about our takeover than takeovers where its a rich owner using their own money and then running the club at a loss..

[claret2018]

I hate it when football clubs (or any business) tries to be funny on social media. It’s massively cringy

[ŽižkovClaret]

I wonder who the local businessman mentioned in the BBC article is? Fishwick maybe? guess we'll be playing spot the missing advert tonight

[GodIsADeeJay81]

I hate it when football clubs (or any business) tries to be funny on social media. It’s massively cringy

Or you just don't have a sense of humour..

[Jacko]

Weird how there is more noise being made about our takeover than takeovers where its a rich owner using their own money and then running the club at a loss..

I think that would be an argument to give more coverage to those worrying circumstances rather than turn a blind eye to this one. This is plainly newsworthy & of public interest.

For me, this bit stands out in the article:

"And while it is unnerving for some that a club that previously owed nothing should now be saddled with huge debts and associated finance costs, it is described as being better than having one wealthy owner who, at a moment's notice, could pull the plug on funding, as was the case with Portsmouth and, more recently, Wigan.

"BBC Sport has been told Pace's business plan involves continuing the tight financial controls used by the previous regime."

They seem to be gradually distancing themselves from earlier claims that there would be more money to spend, which makes me wonder what the justification for the takeover is beyond they now own it, which is good for them.

[GodIsADeeJay81]

I think that would be an argument to give more coverage to those worrying circumstances rather than turn a blind eye to this one. This is plainly newsworthy & of public interest.

For me, this bit stands out in the article:

"And while it is unnerving for some that a club that previously owed nothing should now be saddled with huge debts and associated finance costs, it is described as being better than having one wealthy owner who, at a moment's notice, could pull the plug on funding, as was the case with Portsmouth and, more recently, Wigan.

"BBC Sport has been told Pace's business plan involves continuing the tight financial controls used by the previous regime."

They seem to be gradually distancing themselves from earlier claims that there would be more money to spend, which makes me wonder what the justification for the takeover is beyond they now own it, which is good for them.

Or they're not going to sink the club into unsustainable debt like we see at other clubs all around us.
So long as our wage bill remains lower than our invoking monies, we should be fine.

[Quickenthetempo]

I wonder who the local businessman mentioned in the BBC article is? Fishwick maybe? guess we'll be playing spot the missing advert tonight

They made CWR remove the words 'the perfect erection' from their long standing advertising board.

[DCWat]

They made CWR remove the words 'the perfect erection' from their long standing advertising board.

Good - that was properly tinpot advertising.

[Stevie Morgan]

I think that would be an argument to give more coverage to those worrying circumstances rather than turn a blind eye to this one. This is plainly newsworthy & of public interest.

For me, this bit stands out in the article:

"And while it is unnerving for some that a club that previously owed nothing should now be saddled with huge debts and associated finance costs, it is described as being better than having one wealthy owner who, at a moment's notice, could pull the plug on funding, as was the case with Portsmouth and, more recently, Wigan.

"BBC Sport has been told Pace's business plan involves continuing the tight financial controls used by the previous regime."

They seem to be gradually distancing themselves from earlier claims that there would be more money to spend, which makes me wonder what the justification for the takeover is beyond they now own it, which is good for them.

Also great for Mike Garlick's wallet. Think that's the main justification.

[Quickenthetempo]

Good - that was properly tinpot advertising.

It always raised at least a smile.

[Quickenthetempo]

Also great for Mike Garlick's wallet. Think that's the main justification.

What did you expect Garlick to do? He's a business man that worked for free during his reign here.

If you sell your house do you accept the top offer or sell for a reduced price to people you think your neighbours will like more?

[Goody1975]

Sorry if already posted but an article just appeared on the BBC Sport website, regarding the takeover.

https://www.bbc.co.uk/sport/football/56089037

[randomclaret2]

What did you expect Garlick to do? He's a business man that worked for free during his reign here.

If you sell your house do you accept the top offer or sell for a reduced price to people you think your neighbours will like more?

I suspect the amount Mr Garlick's shares sold for might just about make up for the working " for free "

[Quickenthetempo]

I suspect the amount Mr Garlick's shares sold for might just about make up for the working " for free "

I'm glad it did, he deserves it.

[claretonthecoast1882]

I suspect the amount Mr Garlick's shares sold for might just about make up for the working " for free "

Would you have taken that scenario when he joined ? Or would you have been happier had we become an unattractive club to buy

[Chester Perry]

So that article could have been lifted from this and the small shareholders thread, the one nugget was something I ha had noticed at the Bournemouth game -local advertisers, there were much fewer along the perimeters (and none double stacked on the Bob Lord, I wondered if it was just for the FA Cup, but it would seem not, also noticed that there is a new sponsor across the top of the Bob Lord stand, which at the start of the season was on top of the Cricket field stand but not now

I have previously commented on the fact that our previous board were mindful of the many local businesses that had helped them through hard years, and would probably be needed again in the future as the cycle of football fortune turns for clubs like ours, It was, I believe, one of the reasons Barry Kilby refused to go into administration post itv digital (not wanting to penalise those who had already given so much). there will be some who say it is necessary to move on, but people in this area have long memories and this kind of treatment will not be forgotten or likely forgiven when it comes to the selling of the likely additional hospitality packages the new owners will be looking to sell or even simple things like Christmas parties or end of year and sportsman's dinners. Pace came in saying he wanted to keep the club at the heart of the community.

This is a warning shot, something I feared because I think it will come back to haunt this ownership, they think they understand but this is not America and even clubs like Liverpool have had to make sharp abrupt turns in policy and apologise when fans and the local community remind them of their responsibilities.

[jojomk1]

I'm glad it did, he deserves it.

I think you will find that MG, in the latter stages of his reign, had altered his title to that of "Executive Chairman" for which he received a remuneration

If Mr Pace is going to relocate to this area, in order to work closely on the financial stability of the club, where will his future earnings come from ?

[Newcastleclaret93]

Still waiting for anything positive to come out of the takeover.
All of the articles about ALK and the takeover are covered in red flags.

Very very concerning times ahead. Let’s hope we are not the next Wigan/Bolton

[DCWat]

So that article could have been lifted from this and the small shareholders thread....

That’s a very good point about local advertisers and the people that will likely be one of the target markets for corporate.

It’s a difficult balancing act for Pace and his team. He obviously needs to bring more money into the club, but needs to do so with a keen eye on those that have been supportive of the club, in a variety of ways, for many years.

People mat have long memories, but they will surely also want what is best for Burnley FC in the future. Hopefully Pace will work closely to ensure that the balance doesn’t tip too far the wrong way.

[GodIsADeeJay81]

Still waiting for anything positive to come out of the takeover.
All of the articles about ALK and the takeover are covered in red flags.

Very very concerning times ahead. Let’s hope we are not the next Wigan/Bolton

Those clubs were already drowning and had been for years propped up by their owners.
New owners couldn't reduce the wage bills quick enough to save the clubs from dropping down the leagues.

Our wage bill isn't going to cause the same issue here.

[Chester Perry]

I think you will find that MG, in the latter stages of his reign, had altered his title to that of "Executive Chairman" for which he received a remuneration

If Mr Pace is going to relocate to this area, in order to work closely on the financial stability of the club, where will his future earnings come from ?

His title change reflected on the lack of football experience of the new Chief Executive Neil Hart, it showed that he would be more involved in the day to day running of the club, there is no public record to suggest that Mike Garlick started taking a salary for the role. the change does mark the very public change in public presentation from Sean Dyche in regards to player contracts and potential new signings. The exit of Dave Baldwin has caused so much disruption within our club and from the outside it seems apparent that his abilities and capabilities have never been fully replaced.

[Newcastleclaret93]

That’s a very good point about local advertisers and the people that will likely be one of the target markets for corporate.

It’s a difficult balancing act for Pace and his team. He obviously needs to bring more money into the club, but needs to do so with a keen eye on those that have been supportive of the club, in a variety of ways, for many years.

People mat have long memories, but they will surely also want what is best for Burnley FC in the future. Hopefully Pace will work closely to ensure that the balance doesn’t tip too far the wrong way.

I think a balance could be struck but from that BBC article it appears Pace and his team have no regard for the local businesses that have supported the club.

[Newcastleclaret93]

Those clubs were already drowning and had been for years propped up by their owners.
New owners couldn't reduce the wage bills quick enough to save the clubs from dropping down the leagues.

Our wage bill isn't going to cause the same issue here.

DJ regardless of how you want to spin it, every single news outlet is saying how concerned we should be.

I have yet to see anything from ALK or Pace to suggest otherwise. I am very concerned about the future of this club under this regime.

[GodIsADeeJay81]

DJ regardless of how you want to spin it, every single news outlet is saying how concerned we should be.

I have yet to see anything from ALK or Pace to suggest otherwise. I am very concerned about the future of this club under this regime.

The same news outlets who rarely say a word about takeovers by billionaires...

I'm not spinning anything by the way, it's facts about wage bills at clubs like Bolton and Wigan that sank them and still continue to do so.

[claretonthecoast1882]

DJ regardless of how you want to spin it, every single news outlet is saying how concerned we should be.

Are they ?

[TheFamilyCat]

I think a balance could be struck but from that BBC article it appears Pace and his team have no regard for the local businesses that have supported the club.

One sponsor who has refused to pay. The claim of a gentleman's agreement is unsubstantiated.

[Newcastleclaret93]

One sponsor who has refused to pay. The claim of a gentleman's agreement is unsubstantiated.

you can only go off what is being reported but it appears we have a disgruntled local sponsor. I think ALK have handled it poorly if the local sponsor are talking to the press about it.

[dandeclaret]

Those clubs were already drowning and had been for years propped up by their owners.
New owners couldn't reduce the wage bills quick enough to save the clubs from dropping down the leagues.

Our wage bill isn't going to cause the same issue here.

I don't think you can be confident of that can you? Wage bill is running around 3-4 x controllable income (Gate receipts and Commercial income). If relegation comes along, and wages for all drop by 25% then parachute payments will just about cover it, assuming commercial revenue stays consistent. Otherwise there's a £5m - £20m annual shortfall during the first year of parachute payments and growing markedly from there, unless there's a return to the premier league, or severe cost cutting to playing staff salaries.

[Newcastleclaret93]

The same news outlets who rarely say a word about takeovers by billionaires...

I'm not spinning anything by the way, it's facts about wage bills at clubs like Bolton and Wigan that sank them and still continue to do so.

I get your point about billionaire owners but they are far more common than leveraged takeovers.

Of all of the leveraged takeovers you could argue only one has been remotely successful and even that has lead to there worst run in over 30 seasons.

[GodIsADeeJay81]

I get your point about billionaire owners but they are far more common than leveraged takeovers.

Of all of the leveraged takeovers you could argue only one has been remotely successful and even that has lead to there worst run in over 30 seasons.

How successful have billionaire owners been?
Only 1 that I can think of, Chelsea.

City are owned by a company, as are Leicester I think.

The rest just prop up their clubs.

[TheFamilyCat]

you can only go off what is being reported but it appears we have a disgruntled local sponsor. I think ALK have handled it poorly if the local sponsor are talking to the press about it.

Or you could read the article, see that ther is only one side of the story presented and keep an open mind.

[GodIsADeeJay81]

I don't think you can be confident of that can you? Wage bill is running around 3-4 x controllable income (Gate receipts and Commercial income). If relegation comes along, and wages for all drop by 25% then parachute payments will just about cover it, assuming commercial revenue stays consistent. Otherwise there's a £5m - £20m annual shortfall during the first year of parachute payments and growing markedly from there, unless there's a return to the premier league, or severe cost cutting to playing staff salaries.

I don't know what the relegation clauses are for our staff.

With all the money spent etc this last decade, we are a more attractive proposition for players and managers if we got relegated and Dyche left.

[Newcastleclaret93]

How successful have billionaire owners been?
Only 1 that I can think of, Chelsea.

City are owned by a company, as are Leicester I think.

The rest just prop up their clubs.

I don’t understand your argument, any fan would prefer a billionaire owner rather than owners that start there tenure-ship plunging the club into debt.

[GodIsADeeJay81]

I don’t understand your argument, any fan would prefer a billionaire owner rather than owners that start there tenure-ship plunging the club into debt.

Ah so a gradual decline into unmanageable debt is the more preferred option.

Yes I think Bolton fans preferred that right up until they realised how bad it had gotten when Eddie sold up.

They don't view Eddie in the same light anymore.

[Chester Perry]

I don't know what the relegation clauses are for our staff.

With all the money spent etc this last decade, we are a more attractive proposition for players and managers if we got relegated and Dyche left.

While there are indeed relegation clauses in all the players contracts (football standard is 30% - 40%) I think that is in the accounts somewhere and Premier League bonuses (roughly 30%) of the player and coaching staff wage bill (1st team squad only I suspect) are not paid on relegation. The bigger concern is that the permanent contracted staff at the club has doubled in the last 3 years to around 300, more than 1 season in the Championship is likely to see a significant round of redundancies.

[aggi]

How successful have billionaire owners been?
Only 1 that I can think of, Chelsea.

City are owned by a company, as are Leicester I think.

The rest just prop up their clubs.

That's a bit of a weird argument. Chelsea are owned by a company that is owned by Abramovich. City are owned by a company that is owned by Mansour bin Zayed al-Nahyan, etc

[GodIsADeeJay81]

That's a bit of a weird argument. Chelsea are owned by a company that is owned by Abramovich. City are owned by a company that is owned by Mansour bin Zayed al-Nahyan, etc

My point being Newcastle stated a preference for billionaire owners instead of a leveraged buyout but it's only been a success for a very small number of clubs, if we are measuring success by regular top half/6 finishes and trophies.

The rest just bob along making up the numbers.

[aggi]

I think you will find that MG, in the latter stages of his reign, had altered his title to that of "Executive Chairman" for which he received a remuneration

If Mr Pace is going to relocate to this area, in order to work closely on the financial stability of the club, where will his future earnings come from ?

There's no evidence either way as to whether he received a salary as Executive Chairman. He hadn't received any remuneration up until 30 June 2019.

[Chester Perry]

How successful have billionaire owners been?
Only 1 that I can think of, Chelsea.

City are owned by a company, as are Leicester I think.

The rest just prop up their clubs.

Manchester City is owned by CFG a multi-club group which is controlled by a Billionaire, and has 2 other major investment groups each controlled by Billionaires, some of the other clubs in CFG have share holdings with other Billionaires

Leicester is owned by King Power which is owned by a Billionaire family

Liverpool is owned by FSG which is a multi-franchise sports group owned by a group of around 20 families - which are for the most part Billionaires

Manchester United are owned by a Billionaire family who also have a multi-franchise sports group

Arsenal is owned by a Billionaire and are part of a multi-franchise sports group

Tottenham is owned by a Billionaire

These are the clubs which have won most of the domestic trophies in the last decade and/or have participated in the Champions League
-------------------------------
Wolves are owned by Fosun which is controlled by a Billionaire family and have football clubs in Switzerland and China

Aston Villa are owned by NSWE which is owned by two Billionaires

Leeds United are owned by a Billionaire and and Billionaire family that control the San Francisco 49ers

Brighton are owned by a Billionaire who also owns a club in Belgium

These clubs have appeared to be on the up
------------------------------------------
Crystal Palace are controlled by two Billionaires who have other sports franchises

Newcastle are owned by a Billionaire

Southampton are owned by two Billionaires

Fulham are owned by a Billionaire and part of a multi-franchise group

Everton are owned by a Billionaire

West Ham is owned by a Billionaire and someone else who is close to being a Billionaire

These clubs have peeks and troughs of form - Palace and West Ham are the 8th and 9th longest serving current members of the Premier League, Everton are ever presents
----------------------------------------------
West Brom is owned by Chinese group that want to sell

Sheffield United are part of a multi-club group

and Burnley's owners may be poorer than the last lot

[Newcastleclaret93]

Manchester City is owned by CFG a multi-club group which is controlled by a Billionaire, and has 2 other major investment groups each controlled by Billionaires, some of the other clubs in CFG have share holdings with other Billionaires

Leicester is owned by King Power which is owned by a Billionaire family

Liverpool is owned by FSG which is a multi-franchise sports group owned by a group of around 20 families - which are for the most part Billionaires

Manchester United are owned by a Billionaire family who also have a multi-franchise sports group

Arsenal is owned by a Billionaire and are part of a multi-franchise sports group

Tottenham is owned by a Billionaire

These are the clubs which have won most of the domestic trophies in the last decade and/or have participated in the Champions League
-------------------------------
Wolves are owned by Fosun which is controlled by a Billionaire family and have football clubs in Switzerland and China

Aston Villa are owned by NSWE which is owned by two Billionaires

Leeds United are owned by a Billionaire and and Billionaire family that control the San Francisco 49ers

Brighton are owned by a Billionaire who also owns a club in Belgium

These clubs have appeared to be on the up
------------------------------------------
Crystal Palace are controlled by two Billionaires who have other sports franchises

Newcastle are owned by a Billionaire

Southampton are owned by two Billionaires

Fulham are owned by a Billionaire and part of a multi-franchise group

Everton are owned by a Billionaire

West Ham is owned by a Billionaire and someone else who is close to being a Billionaire

These clubs have peeks and troughs of form - Palace and West Ham are the 8th and 9th longest serving current members of the Premier League, Everton are ever presents
----------------------------------------------
West Brom is owned by Chinese group that want to sell

Sheffield United are part of a multi-club group

and Burnley's owners may be poorer than the last lot

This right there is what I mean when I say every single Fan would prefer to be taken over by a billionaire rather than a leveraged takeover.

[Chester Perry]

This right there is what I mean when I say every single Fan would prefer to be taken over by a billionaire rather than a leveraged takeover.

I was happy with our previous owners and have never wanted a Billionaire, to stretch the club's sustainability or take us financially out of the reach of the community in which it was based. Yes they could have done more to grow the commercial income, though that was coming on stream and all the evidence I have seen was that they were on a planned growth across the whole club.

[Paul Waine]

I wonder who the local businessman mentioned in the BBC article is? Fishwick maybe? guess we'll be playing spot the missing advert tonight

I'd have expected anyone in the van supply business to have done very well during a period when shops aren't open and the roads full of vans delivering parcels from on-line purchases.

Exciting times.

UTC

[Paul Waine]

Manchester City is owned by CFG a multi-club group which is controlled by a Billionaire, and has 2 other major investment groups each controlled by Billionaires, some of the other clubs in CFG have share holdings with other Billionaires

Leicester is owned by King Power which is owned by a Billionaire family

Liverpool is owned by FSG which is a multi-franchise sports group owned by a group of around 20 families - which are for the most part Billionaires

Manchester United are owned by a Billionaire family who also have a multi-franchise sports group

Arsenal is owned by a Billionaire and are part of a multi-franchise sports group

Tottenham is owned by a Billionaire

These are the clubs which have won most of the domestic trophies in the last decade and/or have participated in the Champions League
-------------------------------
Wolves are owned by Fosun which is controlled by a Billionaire family and have football clubs in Switzerland and China

Aston Villa are owned by NSWE which is owned by two Billionaires

Leeds United are owned by a Billionaire and and Billionaire family that control the San Francisco 49ers

Brighton are owned by a Billionaire who also owns a club in Belgium

These clubs have appeared to be on the up
------------------------------------------
Crystal Palace are controlled by two Billionaires who have other sports franchises

Newcastle are owned by a Billionaire

Southampton are owned by two Billionaires

Fulham are owned by a Billionaire and part of a multi-franchise group

Everton are owned by a Billionaire

West Ham is owned by a Billionaire and someone else who is close to being a Billionaire

These clubs have peeks and troughs of form - Palace and West Ham are the 8th and 9th longest serving current members of the Premier League, Everton are ever presents
----------------------------------------------
West Brom is owned by Chinese group that want to sell

Sheffield United are part of a multi-club group

and Burnley's owners may be poorer than the last lot

Great listing of all the Premier League clubs, CP.

It's great that Burnley Football Club is competing with them.

Exciting times.

UTC