Pace/ALK set to buy Espanyol?

[dsr]

The only difference I note is that the stadium is more easily available for concerts and such like for those acts not quite big enough to fill mega stadiums - it's location helps on that front too - it is a good niche level size and the relationship with Ticketmaster could help on that front

Recent experience suggests that a relationship with ticketmaster is not necessarily a help in selling tickets.

[ClaretPete001]

I thought the whole discussion here was that Espanyol are an established La Liga side? Sure I read somewhere that they’ve been relegated four times in their history or something?

My assumption is that we’re much the more likely side to be relegated and I think if we are there’s some quite significant advantages (assuming they are not in the same year) in terms of how we shape our squads, offload players on high salaries that can’t find other moves, maybe bring players back from loan who would help us get back up and so on.

Clearly the double relegation scenario is the worst possible case scenario, but while one remains in a top division, I think relegations for the other may be possible to better manage. I actually think Espanyol face to benefit more from the ALK acquisition than than we did when first purchased though. I can imagine two or three players in our current squad players might improve them but not be part of our immediate plans.

Fair point, it's possibly the case that you could have 2 or 3 players in the same position in one club required by the other who would benefit from a loan

[Paul Waine]

Thanks for doing a search Paul, much appreciated. Maybe not then, for some reason I thought Micheal Dell was part of the LDS but he’s not so maybe that was the guy running MSD at the time of the purchase.

Anyway, the report I read said they’re connected to “100’s” of family offices so who knows?

Forbes - number of family offices:
March 2025

The family office market is notoriously difficult to size. Unlike publicly traded companies or even traditional wealth management firms, family offices operate in a highly opaque and private manner. This lack of transparency, combined with the absence of a standardized definition, makes it challenging to produce accurate estimates.

For instance, EY’s 2016 Family Office Guide estimated there were at least 10,000 family offices worldwide. Since then, estimates from Campden Wealth, IQ-EQ, UBS, Fintrx, With Intelligence, and KPMG have ranged from 3,500 to 20,000. Deloitte’s 2024 estimate of 8,030 family offices, with a projected growth rate of 4.8%, is one of the more precise figures, but even this is based on assumptions that may not hold universally.

The problem lies in the criteria used to define a family office. Some estimates focus on assets under management (AUM), using thresholds like $100 million or $250 million. At the same time some new estimates are championing the case for small family offices of only $50 million. Jan Voss, from Cape May advisors recently argued that there are cost-savings to be had even at this scale while also gaining access to other opportunities through the effective implementation of technology.

Others consider the number of employees, the range of services offered, or the structure (single-family offices vs. multi-family offices). These differing methodologies naturally lead to varying results. For example, an estimate that includes smaller family offices with lower AUM will yield a larger market size than one that focuses solely on large, institutionalized single-family offices.

I'd expect that Alan Pace, in his role at Citigroup, would have had contact with many family offices.

[forzagranata]

Pace was up-front about family offices being part of ALK's investment strategy right from the outset.

The phrasing of the term 'family office' sounds a little weird in a British context but essentially we are basically talking about people/families who might want to invest in a football club but don't want the hassle/responsibility of being a major shareholder/owner.

From what I understand the recent 'San Francisco 49ers' takeover of Rangers was heavily financed by family offices with the 49ers the public facing part.

A lot of these families also like to stay in the background and don't need the publicity that comes with being a club investor outside a fund structure.

[RVclaret]

Pace was up-front about family offices being part of ALK's investment strategy right from the outset.

The phrasing of the term 'family office' sounds a little weird in a British context but essentially we are basically talking about people/families who might want to invest in a football club but don't want the hassle/responsibility of being a major shareholder/owner.

From what I understand the recent 'San Francisco 49ers' takeover of Rangers was heavily financed by family offices with the 49ers the public facing part.

A lot of these families also like to stay in the background and don't need the publicity that comes with being a club investor outside a fund structure.

Yep, you are spot on. Family offices have very diversified portfolios, they invest across a wide variety of assets, not just equities or fixed income, but across private markets, real estate, art collections, then sports management funds falls within that. Sport, including football, is seen as a nice way to diversify a portfolio, when sh1t hits the fan in global markets, sport should be relatively unaffected, therefore providing a positive return and reducing risk during that period.

[NewClaret]

Thanks Paul and interesting posts from forzagranata and RV.

[ClaretPete001]

I guess on the one hand it could be true we have a lot of private investors somewhere in ALKs structure and on the other it could be post-hoc rationalisation. Over fitting a hypothesis to a set of circumstances that we cannot explain.

Apparently the deal with Espanyol is imminent so we should find out a lot more very soon.

Interesting times...!

[Chester Perry]

I guess on the one hand it could be true we have a lot of private investors somewhere in ALKs structure and on the other it could be post-hoc rationalisation. Over fitting a hypothesis to a set of circumstances that we cannot explain.

Apparently the deal with Espanyol is imminent so we should find out a lot more very soon.

Interesting times...!

there are certainly quite a few that we have identified from their attendance at games and posts on social media - Simon (forzagranata) and his chums at 'From the Bee Hole End' have even had access to some of the material that has been used to entice investors into Velocity via their media connections.

Some will be family offices, they are the ones that tend to keep a bit quieter, but there are also a number of individuals that are in it for the experience(s) it offers

[ClaretPete001]

there are certainly quite a few that we have identified from their attendance at games and posts on social media - Simon (forzagranata) and his chums at 'From the Bee Hole End' have even had access to some of the material that has been used to entice investors into Velocity via their media connections.

Some will be family offices, they are the ones that tend to keep a bit quieter, but there are also a number of individuals that are in it for the experience(s) it offers

I'll be honest, I don't really see that as evidence. It's even possible some like JJ Watts are given the shares free for the publicity he generates - who knows.

I don't see it as a viable business model. Just to remind, Rovers suck up over £20 million a year of the Venky's money just to compete in the upper echelons of the Championship.

The only way a club like Burnley can compete is to have a whole club footballing strategy like the one Dyche and Garlic developed using accumulated PL money to maintain a squad better than at least 3 in the PL.

Unfortunately, the needle in my brain is stuck on the turntable of my cognitive record player.

[randomclaret2]

Deal confirmed...

[randomclaret2]

The RASTAR Group, the majority shareholders of RCD Espanyol, have reached an agreement in the past few hours with Velocity Sport Limited (VSL), an English-based group which also has American shareholders. In this agreement, VSL will become shareholders in this holding company and participate in a strategic alliance that will position RCD Espanyol at the same level as Burnley FC, the only club in this group up until now.

With this deal, RC Espanyol and the English club will be part of this investment group, which expands its interests by having a club in LaLiga and another in the Premier League -although each will remain independent,

This business integration formula allows for the coexistence of two historic clubs that will operate independently, although they will be supported by the same financial group. Despite the agreement reached, this process is still pending officialisation and completion until all administrative procedures are formalised.

RASTAR is not disassociating itself from RCD Espanyol, but rather its shares will become part of this new investment vehicle that will have stakes in both clubs.

Likewise, with this managerial step forward, RASTAR underlines a firm conviction that this integration into the VSL group will strengthen both the economic and sporting structure of RCD Espanyol.

[forzagranata]

In short - Velocity (Pace etc) are taking over Espanyol. Espanyol's current owners RASTAR will become minority investors in Velocity Sport as part of the deal.

In other words, as part of the deal, Espanyol's current owners become minority owners in Burnley FC.

There are, of course, a number of minority owners of BFC and we have no idea of the scale of that ownership.

[Chester Perry]

For those that are interested in Structure Velocity Sport Limited is in Jersey and sits under ALK Capital LLC, and Velocity Sports Partners LLC and Velocity Sports Feeder Ltd (Jersey - itself an ALK Capital LLC wholly owned vehicle) - it also holds all shares in Velocity Capital (UK) Holdings Ltd which is the main shareholder in Burnley FC Holdings Limited

[gandhisflipflop]

Apparently the rastar group are a Chinese group with a net worth of 6 billion

[NewClaret]

In short - Velocity (Pace etc) are taking over Espanyol. Espanyol's current owners RASTAR will become minority investors in Velocity Sport as part of the deal.

In other words, as part of the deal, Espanyol's current owners become minority owners in Burnley FC.

There are, of course, a number of minority owners of BFC and we have no idea of the scale of that ownership.

If I’m honest, I always thought that MG/JB may have had to remain part of the ALK structure at some level, particularly through earn out.

Chinese investment in VSL may not be bad for Burnley. Guess it diversifies the investor base a bit.

[Chester Perry]

In short - Velocity (Pace etc) are taking over Espanyol. Espanyol's current owners RASTAR will become minority investors in Velocity Sport as part of the deal.

In other words, as part of the deal, Espanyol's current owners become minority owners in Burnley FC.

There are, of course, a number of minority owners of BFC and we have no idea of the scale of that ownership.

This switch of shareholding into Velocity is interesting because of what we know about the structure of shares in Velocity Sport Ltd - it will effectively further increase the control held by ALK/Pace - unless RASTAR are given access to Management shares which seems unlikely

[Rileybobs]

Grim.

[NewClaret]

Apparently the rastar group are a Chinese group with a net worth of 6 billion

Where did you get this from mate? I googled and got that RASTAR are a ~$230m revenue and $840m market cap company?

[Big Vinny K]

Grim indeed
Not long before we go into the derivatives and sub prime markets.

[gandhisflipflop]

Where did you get this from mate? I googled and got that RASTAR are a ~$230m revenue and $840m market cap company?

I just googled rastar group net worth. Im not well up on these things, just saying what it said.

[NewClaret]

I just googled rastar group net worth. Im not well up on these things, just saying what it said.

Thanks will try again!

[NewClaret]

I just googled rastar group net worth. Im not well up on these things, just saying what it said.

Ah, got it. It’s 6bn yuan, $840m USD valuation. Still, a significant company now known to be invested in Burnley.

[Chester Perry]

This switch of shareholding into Velocity is interesting because of what we know about the structure of shares in Velocity Sport Ltd - it will effectively further increase the control held by ALK/Pace - unless RASTAR are given access to Management shares which seems unlikely

To my mind this appears to be a part of a staged, quiet 'face-saving' withdrawal from European football that we have seen with almost all the Chinese entrants into the European game

[ArmchairDetective]

I know it's a bit pie in the sky, but does this weird and wonderful structure of ownership groups/vehicles/persons essentially mean that we could get round the issue that Palace and Lyon are currently having of trying to play in the same competition, should we ever be lucky enough to play in Europe again?

[Chester Perry]

I know it's a bit pie in the sky, but does this weird and wonderful structure of ownership groups/vehicles/persons essentially mean that we could get round the issue that Palace and Lyon are currently having of trying to play in the same competition, should we ever be lucky enough to play in Europe again?

No

[ArmchairDetective]

No

Oh.

[forzagranata]

No it would leave us in a very similar situation to Palace/Lyon should Burnley and Espanyol both qualify for the Europa League.

However, that's not a problem we are likely to face for a while I would imagine......

[Chester Perry]

Oh.

As I posted earlier - the nature of the different share types at Velocity Sports Ltd (Jersey) will give ALK Capital LLC and therefore Pace overall control - and the more shares issued in Velocity Sport Ltd (Jersey) the much greater the control they have.

[forzagranata]

To my mind this appears to be a part of a staged, quiet 'face-saving' withdrawal from European football that we have seen with almost all the Chinese entrants into the European game

Certainly much more likely to be this than the Chinese becoming significant players at Burnley. After all, they are selling Espanyol for a reason.

[Row x]

No it would leave us in a very similar situation to Palace/Lyon should Burnley and Espanyol both qualify for the Europa League.

However, that's not a problem we are likely to face for a while I would imagine......

I'd be happy if we were dropped from the europa league next summer.

[Chester Perry]

Certainly much more likely to be this than the Chinese becoming significant players at Burnley. After all, they are selling Espanyol for a reason.

They can now sell up and exit at any point in the future without any public announcement

[123EasyasBFC]

Could these be the potential Chinese investors that were apparently put off investing after we lost away Norwich in the game before dyche got sacked?

[Chester Perry]

Could these be the potential Chinese investors that were apparently put off investing after we lost away Norwich in the game before dyche got sacked?

Very unlikely, I would say, without even challenging the veracity of that old story - which was questionable

[forzagranata]

They can now sell up and exit at any point in the future without any public announcement

Exactly - which is something that, as you suggest, is a welcome face-saving opportunity in Chinese business culture.

[Quickenthetempo]

If I’m honest, I always thought that MG/JB may have had to remain part of the ALK structure at some level, particularly through earn out.

Chinese investment in VSL may not be bad for Burnley. Guess it diversifies the investor base a bit.

They had to stay on at Burnley for 3 years or so until ALK could raise enough finance to buy their shares.

I think this will be the same. ALK haven't got the finance to buy them out straight out, so have given these shares to them until payments can be made.

Only guesswork mind.

[dsr]

No it would leave us in a very similar situation to Palace/Lyon should Burnley and Espanyol both qualify for the Europa League.

However, that's not a problem we are likely to face for a while I would imagine......

It wasn't a problem Palace were likely to face - until it happened.

[NewClaret]

No it would leave us in a very similar situation to Palace/Lyon should Burnley and Espanyol both qualify for the Europa League.

However, that's not a problem we are likely to face for a while I would imagine......

Agree. You’d think a well managed and invested Espanyol may make Europe in La Liga but it’s hard to imagine it’ll be a problem we ever have to worry about. If it is, I’ll be very happy!

[NewClaret]

They had to stay on at Burnley for 3 years or so until ALK could raise enough finance to buy their shares.

I think this will be the same. ALK haven't got the finance to buy them out straight out, so have given these shares to them until payments can be made.

Only guesswork mind.

Yep, I think this might be a bit of an acquisition playbook. Bit up front, take shares in the group until you’re paid out over time.

The Chinese may have an interest in being part of a wider sporting group though, I suppose.

[Chester Perry]

They had to stay on at Burnley for 3 years or so until ALK could raise enough finance to buy their shares.

I think this will be the same. ALK haven't got the finance to buy them out straight out, so have given these shares to them until payments can be made.

Only guesswork mind.

It has been public knowledge for a while that the deal is similarly constructed to the one used to takeover our club - not all the RASTAR shareholding is not being fully bought out at this point - though it appears that RASTAR are wanting to disassociated themselves from public/direct board involvement at RCD Espanyol hence the merger/transfer to Velocity.

[Vegas Claret]

Don't worry about Europe, Pace will just pull a Marinakis and paper exercise a blind trust

[Chester Perry]

Don't worry about Europe, Pace will just pull a Marinakis and paper exercise a blind trust

It does not appear to be in his nature - same could be said for Marinakis - who seemed very much involved while that blind trust had it's short existence

[Vegas Claret]

It does not appear to be in his nature - same could be said for Marinakis - who seemed very much involved while that blind trust had it's short existence

indeed, absolute joke

[dsr]

Blind trusts are always fictional. Rich people do not entrust control of their riches to third parties.

[Chester Perry]

They had to stay on at Burnley for 3 years or so until ALK could raise enough finance to buy their shares.

I think this will be the same. ALK haven't got the finance to buy them out straight out, so have given these shares to them until payments can be made.

Only guesswork mind.

While true that the original deal would have kept them at the club until July 2023, it is worth noting that Garlick and Banaszkiewicz were out of the door at the club in 22.5 months - November 15th 2022 - as confirmed by the restated Confirmation Statement at Companies House

[Spike]

Big do’s and little Do’s

[ClaretPete001]

To be fair, a whole thread wasted arguing about super investors waiting in the wings, Family Offices, Private Equity money blah blah blah.

As it turns out, not unexpectedly, the general consensus is it's probably some kind of leveraged deal where the Chinese get paid out over a period.

The statement seems deliberately ambiguous enough to read almost anything into it.

[Paul Waine]

Congratulations Alan Pace and team on reaching agreement with the shareholders of Espanyol and adding the Spanish club to ALK/VSP group. It's good to know that the investors in ALK/VSP support what has been achieved so far with Burnley Football Club, and that you have your investors support to expand ALK/VSP investment, adding a second significant club.

UTC

[Paul Waine]

It has been public knowledge for a while that the deal is similarly constructed to the one used to takeover our club

Hi CP, I'm curious about your words. What exactly has been "public knowledge for a while?" The deal has only been confirmed today. Has there been any previous public announcement on the structure of acquisition of Espanyol?

[Rileybobs]

Congratulations Alan Pace and team on reaching agreement with the shareholders of Espanyol and adding the Spanish club to ALK/VSP group. It's good to know that the investors in ALK/VSP support what has been achieved so far with Burnley Football Club, and that you have your investors support to expand ALK/VSP investment, adding a second significant club.

UTC

[Commy]

I read somewhere last week that leveraged deals aren't allowed in Spain.