Pace/ALK set to buy Espanyol?

[123EasyasBFC]

Mr Pace might need to go and remove those videos of falling in love with Barcelona.... or else he could be in for a rocky time with the Espanyol fans

People clinging onto the being in love with Barcelona, Pace literally referenced watching a Barcelona game whilst studying and fell in love with football not that he loves Barcelona football club

[Bordeauxclaret]

I’m sure Espanyol will have a few fans who are desperate to act like scorned teenagers at any opportunity but I suspect the rest won’t care.

[ClaretOfMancunia]

I asked an Espanyol fan what his thoughts on the ALK takeover were. This was his reply, if anyone is interested.

I’m not a fan of multi club ownership particularly in the same governing body. Probably not a very unique opinion to have.

Girona would have never qualified for Champions League if not for CFG connections, but look what it costed them… a litany of conflicts of interests causing them to restructure their management board, stripped away their identity, and immediately became a farm system feeding all the talent they generated back to Man City.

That being said the general sentiment here is anti Rastar Group. They rescued us from financial hell in 2016 but have failed to set the club up for success on the pitch or even stability in the top flight.

[xxmunkyennuixx]

Not so sure about assessments of club size stated in here. This is a top flight club with a long history of being so. They are located in a prestigious European city. We could end up being more like Watford than City in the long run. That's a selfish point of view as a Burnley fan.

As a lover of football more generally, the entire principle is ****. Football is about community not ******* profit. I sincerely hope for no adverse effects on Espanyol.

I still do not understand why some uber capitalists with **** all links to the area have bought our club. I can't see where the profit is going to be generated. They are shite operationally as well which with the profit imperative does not make sense. Everything from tickets to food has been shoddily changed.

[Chester Perry]

From the MMT but kind of works here - with added speculation/question

there is an inevitability about this and it may well see ALK/Velocity take a stake in Dundee, given that our club has a high probability of dropping to the EFL from time to time

from The Guardian

EFL owners clear to buy Scottish and Irish teams after multi-club rules change
Rules now aligned with other competitions
Deal for Rangers showed difficulties with regulations
https://www.theguardian.com/football/20 ... sh-leagues
https://archive.ph/pLEVM

[ClaretJCB]

I’ve seen very little on this topic even though it seems very active at the moment.
What exactly is happening with this potential takeover? I’ve seen so many posts over the last few weeks all over twitter regarding this takeover and recent posts are stating it is close and Alan is planning on travelling to Barcelona next week to get the ownership over the line.
What would this mean for Burnley? Surely Pace would want to prioritise us and put all of his efforts into funding our team which definitely requires some big reinforcements in the middle of the park with Brownhills imminent exit and the huge need we have for a goal scorer.
Is there any benefits to this dual ownership going forward? I can’t help but fear the worst with this!

[jojomk1]

Watford- Udinese springs to mind

[clarets1978]

I’ve seen very little on this topic even though it seems very active at the moment.
What exactly is happening with this potential takeover? I’ve seen so many posts over the last few weeks all over twitter regarding this takeover and recent posts are stating it is close and Alan is planning on travelling to Barcelona next week to get the ownership over the line.
What would this mean for Burnley? Surely Pace would want to prioritise us and put all of his efforts into funding our team which definitely requires some big reinforcements in the middle of the park with Brownhills imminent exit and the huge need we have for a goal scorer.
Is there any benefits to this dual ownership going forward? I can’t help but fear the worst with this!

There was a breaking news banner on Sky Sports News on weds night saying the purchase was almost complete at a cost of £163m (I might be remembering that figure wrong though)

[Paul Waine]

Catalan News: "Sale of RCD Espanyol for €200m is almost ready.

Media reports cite Alan Pace's investment fund Velocity Sports Partnership is behind the acquisition.

[JR1882]

I’ve seen very little on this topic even though it seems very active at the moment.
What exactly is happening with this potential takeover? I’ve seen so many posts over the last few weeks all over twitter regarding this takeover and recent posts are stating it is close and Alan is planning on travelling to Barcelona next week to get the ownership over the line.
What would this mean for Burnley? Surely Pace would want to prioritise us and put all of his efforts into funding our team which definitely requires some big reinforcements in the middle of the park with Brownhills imminent exit and the huge need we have for a goal scorer.
Is there any benefits to this dual ownership going forward? I can’t help but fear the worst with this!

Our team isn’t “funded” whatsoever by ownership investment so he can do both with people in place presumably.

[NewClaret]

Catalan News: "Sale of RCD Espanyol for €200m is almost ready.

Media reports cite Alan Pace's investment fund Velocity Sports Partnership is behind the acquisition.

Interesting Paul. So not ALK Capital LLP or whatever the top entity is?

Does Velocity Sports Partnership even exist in our structure? If not I assume it’s a separate acquisition?

[Claretnick]

Interesting Paul. So not ALK Capital LLP or whatever the top entity is?

Does Velocity Sports Partnership even exist in our structure? If not I assume it’s a separate acquisition?

The last few posts on the original ALK takeover thread mention Velocity Capital Holdings Ltd

[NewClaret]

The last few posts on the takeover thread mention Velocity Capital Holdings Ltd

Yes, so this sounds new? Someone knowledgeable will no doubt be along soon to confirm

[Chester Perry]

Interesting Paul. So not ALK Capital LLP or whatever the top entity is?

Does Velocity Sports Partnership even exist in our structure? If not I assume it’s a separate acquisition?

Velocity Sports Partners LLC sits under ALK Capital LLC - it is their sports investment operation

Velocity Sports Partners is in the group hierarchy that owns our Club and and actually holds a shareholding in Burnley FC Holdings Ltd separate to those held by Velocity Capital (UK) Holdings Ltd while sitting in the group above Velocity Capital (UK) Holdings Ltd).

Velocity Sports Partners LLC is where we believe all those other investors (The Watt family, Dude Perfect etc) are involved.

Expect either:
- a new offshore entity to sit under Velocity Sports Partners LLC to manage onshore Spanish companies. or
- Velocity Sports Feeder Limited and Velocity Sports Ltd on the Island of Jersey to be involved like they are with the Burnley structure

All of this is why ALK/VSL as I used to refer to them like to refer to themselves as Velocity
,
at the top level of this grouping (Velocity Sports Partners LLC) there will likely be no separation involved in the ownership of both Burnley FC and Espanyol

note that the EUR 200m valuation is for the whole of Espanyol and includes a bonus element not unlike that which was used in the initial purchase of shares in Burnley (hence a total payment of £190m for the 83.97% of shares they initially purchased in the club

[Chester Perry]

Our team isn’t “funded” whatsoever by ownership investment so he can do both with people in place presumably.

Indeed - the Espanyol purchase is only really possible because of the debt the club is owed (interest free)

[Claretextile]

The supposed US *investors*, including the rarely-mentioned Malcolm Jenkins, may well be 'sheltering' inside the LLC, but just wish ALK would reveal what %age of shares they acquired and if they actually paid for them.
You expect corporate finance folk to create a pyramid of offshore trusts and holding companies, but a smidgeon of transparency still wouldn't go amiss.
ALK control c85% of BFC shares, after mopping up at least some small investors, so the shareholdings of the Watts and the others must be in the low single digits. Always makes me wince when (for all the great PR he does), Watt is described as a *co-owner*.
That aside, and allowing for the inevitable disconnect between football coverage and facts, it's intriguing that some reports suggest ALK want to buy just a stake, whereas others suggest they wish to acquire the club outright.

[Chester Perry]

The supposed US *investors*, including the rarely-mentioned Malcolm Jenkins, may well be 'sheltering' inside the LLC, but just wish ALK would reveal what %age of shares they acquired and if they actually paid for them.
You expect corporate finance folk to create a pyramid of offshore trusts and holding companies, but a smidgeon of transparency still wouldn't go amiss.
ALK control c85% of BFC shares, after mopping up at least some small investors, so the shareholdings of the Watts and the others must be in the low single digits. Always makes me wince when (for all the great PR he does), Watt is described as a *co-owner*.
That aside, and allowing for the inevitable disconnect between football coverage and facts, it's intriguing that some reports suggest ALK want to buy just a stake, whereas others suggest they wish to acquire the club outright.

We know the way that Velocity is structured and how the shareholdings are managed up through the group Velocity in effect control a fraction over 90% of the shares with Vlad Torgovnik the next biggest shareholder before the rest of minor shareholders

We will never get to know who all the members of Velocity Sports Partners LLC are (I have identified over 20 mainly via their own contributions to social media - but believe there are quite a few more)

As for transparency - it would be helpful if the UK authorities such as Companies House actually enforced their own rules. I learned recently that they don't even fine companies for late filings (of accounts) until a filing has been made, even though the law states that a filing not made on time is a criminal act at the moment it becomes overdue.

Velocity have 3 current UK companies that have never filed accounts and another that has since been dissolved that also never filed accounts. We do know (thanks to Liquidators filings at Companies House) that for two of those three that Accounts have been prepared because there have been payments by them to HMRC (some of which were late and resulted in fines having to be paid).

[TPClaret]

What about Dave Checkett’s new company he has formed with the Eccles family from Utah. Looking to invest £1.2 billion into global sports. Maybe they are putting money into it

[dsr]

The supposed US *investors*, including the rarely-mentioned Malcolm Jenkins, may well be 'sheltering' inside the LLC, but just wish ALK would reveal what %age of shares they acquired and if they actually paid for them.
You expect corporate finance folk to create a pyramid of offshore trusts and holding companies, but a smidgeon of transparency still wouldn't go amiss.
ALK control c85% of BFC shares, after mopping up at least some small investors, so the shareholdings of the Watts and the others must be in the low single digits. Always makes me wince when (for all the great PR he does), Watt is described as a *co-owner*.
That aside, and allowing for the inevitable disconnect between football coverage and facts, it's intriguing that some reports suggest ALK want to buy just a stake, whereas others suggest they wish to acquire the club outright.

I don't think JJ Watt and the others have invested anything in BFC, have they? Their investment is in Velocity and the money they spent has been for the benefit of Velocity and ultimately of Alan Pace, not for the benefit of Burnley FC.

[Hibrieroy]

I mentioned Dave Checketts and his new private equity partnership earlier on in the post. Seems to add up and timing right.

[NewClaret]

I mentioned Dave Checketts and his new private equity partnership earlier on in the post. Seems to add up and timing right.

Definitely. I’ll be amazed if it’s anything other than that.

[Claretextile]

Steddyman:
Because having the second club will give us financial 'means' and 'manipulations' to allow us to spend more without being penalised by PSR rules.

ICYMI ... this is precisely the bizarre mindset which has relegated Lyon.
Textor told the PSR folk in France that he would *resolve* the French club's financial woes by shifting money across from his Brazilian club. They pointed out that, despite his billions, he couldn't do so, but with the arrogance to expected to be expected from a US billionaire blinded by dollar signs, he ignored them.
Likewise with his Palace woes, his ego persuaded him that he could do anything he wished.
The huge downside of the MCO *strategy* is that owners appear to believe they can blithely shift money around their various assets, and that no-one can prevent them doing so.

[TPClaret]

Definitely. I’ll be amazed if it’s anything other than that.

He’s done an interview on YouTube about the new company and how they are looking to invest but doesn’t mention any specifics

[NewClaret]

Steddyman:
Because having the second club will give us financial 'means' and 'manipulations' to allow us to spend more without being penalised by PSR rules.

ICYMI ... this is precisely the bizarre mindset which has relegated Lyon.
Textor told the PSR folk in France that he would *resolve* the French club's financial woes by shifting money across from his Brazilian club. They pointed out that, despite his billions, he couldn't do so, but with the arrogance to expected to be expected from a US billionaire blinded by dollar signs, he ignored them.
Likewise with his Palace woes, his ego persuaded him that he could do anything he wished.
The huge downside of the MCO *strategy* is that owners appear to believe they can blithely shift money around their various assets, and that no-one can prevent them doing so.

I don’t know much about Textor, but I’m pretty sure that loans between clubs and sales between clubs is allowed?

In which case, I think that was what Steddyman meant. It allows us to sell or loan players for fees when needed to improve our PSR position.

Again, I don’t like it, but I don’t like PSR in its current guise either, so you can see why clubs do it and how it could benefit us?

[NewClaret]

He’s done an interview on YouTube about the new company and how they are looking to invest but doesn’t mention any specifics

Interesting. I’ll look that up, thanks.

[Claretextile]

Checketts can't mention *specifics* ... because the mooted $1.2bn PE fund doesn't exist.
He and his family's old buddies, the Eccles family, are targeting family offices and institutional investors, trying to persuade them to invest in the fund because they believe that the JV operated by Checketts and Eccles can make a decent return from its target sectors.
At the time of the announcement, they said they hoped to close (achieve their $1.2bn fund-raise) within 12 months.
Until that point, the fund isn't investing in Espanyol, any other football club or any other asset.
The inevitably euphoric PR around the fund's *launch* appears to have persuaded some folk that it is ready to start making investments, when it 100% is not.

[Vegas Claret]

There's an interview with Checketts with a certain someone from the NNN podcast, I've not had chance to listen to it yet
https://www.youtube.com/watch?v=8qMSsli0LDg

[Claretextile]

Watford's owners have demonstrated for years that it's possible to move players around between different clubs within an MCO strategy, and Chelsea are following the same approach, but it needs to be done with care and must (obviously) meet the transfer rules and regs of each country's football bodies. However, Textor thought he could use his Brazilian club as a piggy-bank and shift funds into Lyon without regard for anyone or any regs.

[Claretextile]

Checketts is a veteran salesman, and am sure he'll happily talk to any podcast, platform or media to spread the message, but the fund still doesn't exist.

[Vegas Claret]

There's an interview with Checketts with a certain someone from the NNN podcast, I've not had chance to listen to it yet
https://www.youtube.com/watch?v=8qMSsli0LDg

of course, I meant the Bee Hole End podcast !!!!

[Corway]

What a tangled web we weave …..

4 Pace companies set up for Burnley of which he is still a director at his Delaware address

VELOCITY SPORTS PARTNERS LIMITED (12880579)
Company status. Dissolved
No Accounts published

CALDER VALE HOLDINGS LIMITED (12919689)
Company status Liquidation
No accounts published

KETTERING CAPITAL LIMITED (12975630)
Company status. Liquidation
No accounts published

ALK CAPITAL LIMITED (12880549)
Company status. Active
Current Assets £10.00p
Not traded during the year assets £12k liabilities £12k
Feb 2025 confirmation the company operates lawfully
Dec 2024 striking off order gazetted and removed a week later


It’s all going on through Jersey

[ClaretTony]

of course, I meant the Bee Hole End podcast !!!!

I was just about to correct you on that one

[NewClaret]

Watford's owners have demonstrated for years that it's possible to move players around between different clubs within an MCO strategy, and Chelsea are following the same approach, but it needs to be done with care and must (obviously) meet the transfer rules and regs of each country's football bodies. However, Textor thought he could use his Brazilian club as a piggy-bank and shift funds into Lyon without regard for anyone or any regs.

Yea, I don’t think that’s what we will be doing or what Steddyman was suggesting?

[NewClaret]

Checketts can't mention *specifics* ... because the mooted $1.2bn PE fund doesn't exist.
He and his family's old buddies, the Eccles family, are targeting family offices and institutional investors, trying to persuade them to invest in the fund because they believe that the JV operated by Checketts and Eccles can make a decent return from its target sectors.
At the time of the announcement, they said they hoped to close (achieve their $1.2bn fund-raise) within 12 months.
Until that point, the fund isn't investing in Espanyol, any other football club or any other asset.
The inevitably euphoric PR around the fund's *launch* appears to have persuaded some folk that it is ready to start making investments, when it 100% is not.

How do you know all this out of interest?

And if that’s correct, where has the £150m investment from ALK come from?

[TPClaret]

How do you know all this out of interest?

And if that’s correct, where has the £150m investment from ALK come from?

Exactly

[Claretextile]

Because ... and it's a sad confession, I have been writing business-related words for decades. Think it was 1986 when I saw my first instance of hyperbolic corporate PR, and it probably came from North Sea Ferries. Or maybe it was P and O.
When I first saw fellow fans talking about the Checketts-Eccles JV on X, I looked at multiple articles on the topic, and of course, read the original PR release.
IF (and it's an extremely large IF) the £150m does exist - and isn't, for example, based on what ALK might put into Espanyol over several seasons - my first thought was that they'd borrowed against the value of their holding in BFC, given that they'd get a higher valuation after promotion.

[ClaretTony]

How do you know all this out of interest?

And if that’s correct, where has the £150m investment from ALK come from?

I know he’s answered your question himself but I can assure you, having known claretextile (posting wise) for a lot of years, that I wouldn’t be questioning him.

[123EasyasBFC]

We know the way that Velocity is structured and how the shareholdings are managed up through the group Velocity in effect control a fraction over 90% of the shares with Vlad Torgovnik the next biggest shareholder before the rest of minor shareholders

We will never get to know who all the members of Velocity Sports Partners LLC are (I have identified over 20 mainly via their own contributions to social media - but believe there are quite a few more)

As for transparency - it would be helpful if the UK authorities such as Companies House actually enforced their own rules. I learned recently that they don't even fine companies for late filings (of accounts) until a filing has been made, even though the law states that a filing not made on time is a criminal act at the moment it becomes overdue.

Velocity have 3 current UK companies that have never filed accounts and another that has since been dissolved that also never filed accounts. We do know (thanks to Liquidators filings at Companies House) that for two of those three that Accounts have been prepared because there have been payments by them to HMRC (some of which were late and resulted in fines having to be paid).

Forgive me if this is a stupid thing to ask but is there nothing legal about knowing wgwruone involved in an investors group such as velocity?

[RVclaret]

Checketts can't mention *specifics* ... because the mooted $1.2bn PE fund doesn't exist.
He and his family's old buddies, the Eccles family, are targeting family offices and institutional investors, trying to persuade them to invest in the fund because they believe that the JV operated by Checketts and Eccles can make a decent return from its target sectors.
At the time of the announcement, they said they hoped to close (achieve their $1.2bn fund-raise) within 12 months.
Until that point, the fund isn't investing in Espanyol, any other football club or any other asset.
The inevitably euphoric PR around the fund's *launch* appears to have persuaded some folk that it is ready to start making investments, when it 100% is not.

Just because they hope the fund could take 12 months to raise the targeted $1.2bn, doesn’t mean they wouldn’t start drawing capital already, if some funds had already been committed. Private equity funds can and will start investing in assets before the fundraising ‘close’, so why is it ‘100% not ready to start making investments’?

[ClaretPete001]

Because ... and it's a sad confession, I have been writing business-related words for decades. Think it was 1986 when I saw my first instance of hyperbolic corporate PR, and it probably came from North Sea Ferries. Or maybe it was P and O.
When I first saw fellow fans talking about the Checketts-Eccles JV on X, I looked at multiple articles on the topic, and of course, read the original PR release.
IF (and it's an extremely large IF) the £150m does exist - and isn't, for example, based on what ALK might put into Espanyol over several seasons - my first thought was that they'd borrowed against the value of their holding in BFC, given that they'd get a higher valuation after promotion.

ALK have BS'ed quite a bit not least about AI so you are probably right.

As far as I recall, a portion of the price to buy us was a £68 million deal directly with Mr Garlick and Co and it wouldn't surprise me if something similar was happening here.

It's quite possible ALK are fronting out a deal for someone else but I'm not sure how that would be reflected in the holdings of the various companies. Or why a billionaire would want to do it that way.

They could also be acting as proxy owners in a private deal between them and the owners of Espanyol like the one they did with Mr Garlick and Co but on a bigger scale.

To be honest, I've no idea and wouldn't be at all surprised if it turns out to be a small stake or nothing comes of it.

[ClaretPete001]

Just because they hope the fund could take 12 months to raise the targeted $1.2bn, doesn’t mean they wouldn’t start drawing capital already, if some funds had already been committed. Private equity funds can and will start investing in assets before the fundraising ‘close’, so why is it ‘100% not ready to start making investments’?

Why would a billion dollar hedge fund want ALK involved? It just adds an extra layer of cost and from ALKs perspective wouldn't do a great deal for them unless they want to be some kind of Sports Management company.

[RVclaret]

Why would a billion dollar hedge fund want ALK involved? It just adds an extra layer of cost and from ALKs perspective wouldn't do a great deal for them unless they want to be some kind of Sports Management company.

It’s not a hedge fund.

Private equity funds can invest in other PE funds/investment funds (ALK), common practice.

[ClaretPete001]

Yes that was me being lazy. I work for a company owned by a private equity company.

The question is what is the point from their perspective, ALKs but more importantly from our perspective. It would be a messy ownership model.

[ClaretPete001]

So, here is how private equity works. Imagine the scenario.

You have a product and you say to Mr PE I need £10 million to add AI to this product and we will be 5 years ahead of the competition and we can be disruptors in the market place. We can double market share within 5 years and increase turnover by £50 million. Mr PE will say - here's a cheque old boy, let's have a glass of this vintage sherry and don't worry fill your boots - the world is your oyster my boy.

On the other hand, you could go and say I need a £100 million to spend on playing assets. And Mr PE will say and what will that do.

You say: "We'll come 16th in the PL instead of 18th and avoid having a 50 per cent cut in turnover."

Mr PE will say "Oh... and what then!"

You would say "Well we can wheel and deal a bit but if you can give us another £100 million we can come 12th in the PL".

Mr PE will say..."Oh, and how much will that increase revenue'.

And you would say: "depends on the broadcasters because the stadium is already full, the catchment area has a lot of competition and we haven't had much success generating non Broadcast revenue".

Mr PE will say...."Oh, so for my £200 million I will get whatever the broadcasters decide to pay out because the business model is entirely dependent upon collective bargaining of TV rights and not a lot else?

You would say: "that's about the size of it but if you could throw in another £100 million we might come 8th in the PL"

Now picture this....."Arrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrggggggggggggggggggggggggggghhhhhhhhhhhhhhhhhhh"

That is you exiting Mr PE's office via the 12th story Window of his expensively rented office space in canary Wharf.

[Big Vinny K]

So, here is how private equity works. Imagine the scenario.

You have a product and you say to Mr PE I need £10 million to add AI to this product and we will be 5 years ahead of the competition and we can be disruptors in the market place. We can double market share within 5 years and increase turnover by £50 million. Mr PE will say - here's a cheque old boy, let's have a glass of this vintage sherry and don't worry fill your boots - the world is your oyster my boy.

On the other hand, you could go and say I need a £100 million to spend on playing assets. And Mr PE will say and what will that do.

You say: "We'll come 16th in the PL instead of 18th and avoid having a 50 per cent cut in turnover."

Mr PE will say "Oh... and what then!"

You would say "Well we can wheel and deal a bit but if you can give us another £100 million we can come 12th in the PL".

Mr PE will say..."Oh, and how much will that increase revenue'.

And you would say: "depends on the broadcasters because the stadium is already full, the catchment area has a lot of competition and we haven't had much success generating non Broadcast revenue".

Mr PE will say...."Oh, so for my £200 million I will get whatever the broadcasters decide to pay out because the business model is entirely dependent upon collective bargaining of TV rights and not a lot else?

You would say: "that's about the size of it but if you could throw in another £100 million we might come 8th in the PL"

Now picture this....."Arrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrggggggggggggggggggggggggggghhhhhhhhhhhhhhhhhhh"

That is you exiting Mr PE's office via the 12th story Window of his expensively rented office space in canary Wharf.

Are you absolutely sure you work for a private equity owned company ?!!!!

[ClaretPete001]

Are you absolutely sure you work for a private equity owned company ?!!!!

Yes, UK and US owned 2 billion dollar tech company but I have nothing to do with them other than they look to grow businesses by investing in future technologies like SAAS (in the past) or AI currently because that's how you raise the value of your products and compete in the marketplace..

As I think Chester says, I see little growth in buying these smaller clubs other than TV broadcast revenue but the amounts required to invest are frightening.

Burnley's growth will come solely from collective bargaining of TV revenue. I see little point to it from a PE perspective and I think a lot of them will get burned. Espanyol may have more potential but we haven't grown the turnover since 2019 and commercial revenues are stagnant. And Espanyol have been relegated in the recent past.

But clearly you, and they know better than me so perhaps you could point out how they are going to significantly grow financially two mid table clubs and how it would benefit Burnley?

[Paul Waine]

Catalan News: "Sale of RCD Espanyol for €200m is almost ready.

Media reports cite Alan Pace's investment fund Velocity Sports Partnership is behind the acquisition.

A little more info in this report in Sport Witness, 2nd July

Burnley owner Alan Pace is now finalising €200m club deal

Burnley owner Alan Pace is finalising a deal to buy Espanyol in a €200m move through Velocity Sports Partners.

That’s according to Marca, who report that the Spanish club are about to chang hands as the Burnley owner is finalising his acquisition.

According to the newspapers information, Pace is securing a majority stake in Espanyol for a sum that could ultimately reach €200m.

The operation, which they say is one of the most ambitious in Spanish football in recent years, will see an almost total change in the shareholdings at the club.

The Burnley owner has been working on the acquisition for more than three months and his team have now completed the due dilligence stage. They are preparing to take over 99% of the club.

The initial investment will be €180m, but a series of incentives and sports objectives could see that rise to €200m. VSP will be in Barcelona next week to sign the contracts and start their ownership formally.

The deal has involved more than 20 professionals, including VSP employees, external auditors lawyers and sports consultants. Talks have taken place exclusively between VSP and Espanyol’s owners without including any club staff members.

Now a deal is done, and Pace will be adding the Spanish club to his portfolio alongside Burnley in a week’s time.

[Paul Waine]

Yes, UK and US owned 2 billion dollar tech company but I have nothing to do with them other than they look to grow businesses by investing in future technologies like SAAS (in the past) or AI currently because that's how you raise the value of your products and compete in the marketplace..

As I think Chester says, I see little growth in buying these smaller clubs other than TV broadcast revenue but the amounts required to invest are frightening.

Burnley's growth will come solely from collective bargaining of TV revenue. I see little point to it from a PE perspective and I think a lot of them will get burned. Espanyol may have more potential but we haven't grown the turnover since 2019 and commercial revenues are stagnant. And Espanyol have been relegated in the recent past.

But clearly you, and they know better than me so perhaps you could point out how they are going to significantly grow financially two mid table clubs and how it would benefit Burnley?

Hi Pete, I don't think you should look at ALK/VSP as a "private equity" investor. It's just a simple investor in football clubs. Their aim is to achieve capital growth as the gap in valuations of English and other European football clubs and USA sports clubs narrows.

[Vegas Claret]

As I think Chester says, I see little growth in buying these smaller clubs other than TV broadcast revenue but the amounts required to invest are frightening.

I don't get why they invest but as you'll know there are LOTS of folks in America that can find 200 million down the back of their sofa and not miss it one bit.

[Paul Waine]

Interesting Paul. So not ALK Capital LLP or whatever the top entity is?

Does Velocity Sports Partnership even exist in our structure? If not I assume it’s a separate acquisition?

Hi New, there was a typo in my post. I should have typed "Velocity Sports Partners" not ""Partnership."

If we go back to the two USA entities: ALK Capital set up by Alan Pace and colleagues is the managing partner of Velocity Sports Partners.

ALK Capital - on their website (www.alkcapital.com) - describe Velocity Sports Partners as the sports investment arm of ALK Capital. Velocity Sports Partners will be the entity that investors would invest in (except for the one or two that appear on BFCHL shareholder register).

The legal entities set up under VSP link the USA parent entity to ALK/VSP investment in Burnley FC Holdings Limited. We should expect similar entities, in whatever form is appropriate, will link ALK/VSP to Espanyol if/when that investment is completed. (I don't know if we will see any legal entities in UK Companies House records for the appropriate links to Espanyol in Spain. Similarly, I don't know if any Jersey entity will be part of the USA to Europe link).