billyhamilton82 wrote: ↑Wed Feb 12, 2025 11:07 am
I'm not trying to be provocative, I'm just stating a fact that there is nothing at all unusual.
The odd confirmation statement being late is usual, especially for big companies from outside the UK, it means nothing.
A leveraged buyout is not unusual, maybe for Burnley Football Club and its fans, but in the business world its an everyday / every hour occurrance.
Every large financial purchase will be leveraged bar none.
Any company won't ever keep money in the bank long term because it dies due to inflation/interest rate discrepancy, essentially you lose money.
A company saves over the short term to invest in the long term.
There is nothing to be concerned about, in fact Pace is getting a lot of flak based on absolutely nothing.
The issue with the leveraged buyout was that it valued the company at over £200 million with organic revenues of less than £20 million. In fact, Tesco's on Centenary way probably generate more revenue than the club because over 80 per cent of the clubs total revenue is based upon PL broadcast revenue.
So, the deal took something like £120 million plus out of a club that is already too small to operate in the PL on a consistent basis.
If you can explain how that is a good deal for the club then please enlighten me because absolutely no one on here has ever managed to do it.
The initial nonsense about Ai proved to be just that and I'm not sure how successful the player trading will be if you spend Eur18 million on players that by the Chairman's own admission do not play when fit for no obvious reason.
The only thing that has kept the club afloat is the huge financial gap between the PL and the Championship that has emerged recently.
And believe me, if we fall short of the top two this season and get beat by either Sunderland or Sheff Utd in the play offs the club will be facing a final year of parachute money and we will be facing a PL turnover of over £130 million reduced to less than £20 million in two years.
