ALK Capital or Farnell/Elkashashy takeover

[aggi]

Out of interest, what other clubs are you comparing us with?

I'm not to sure we are comparable. Take short sales as an example, we only sell through the club shop. Basically means the local area or existing exiled fans. I work all around the world and I see most other Premier League shirts in sport shops (I've even seen Championship & League One shirts - although that was Sheff Utd & Leeds when they were in League One). It was mentioned on the rebranding thread, marketing and commercial activities is one way the new board can really push the club forward financially, capitalising on our current global exposure. We simply haven't done this nearly enough as we should.

I also find it admirable that the club has chosen a balance between local & global sponsorship. However, this is not going to provide the funding to keep a club like us in the Premier League long term without a structured debt approach, which is very risky.

Teams like Bournemouth, Brighton, West Brom, etc

I also work throughout the world and the number of times I've seen lower end premier league club shirts for sale in the past ten years or so is minimal. You did use to see them but my sense is that things have changed. Even in London you're hard pushed to find something like a West Brom or Bournemouth shirt.

Obviously the question is how much more would you sell in none clubshop channels against the profit margin you're losing by selling through other channels, it's not a clear cut issue.

I don't disagree that improvements could be made but I'm not convinced that there is enough scope to materially impact our revenue. If there is then it will have to be something unique that no other club has done.

[Swizzlestick]

“ALK Capital’s Burnley takeover vehicle Calder Vale Holdings Ltd is borrowing money from Michael Dell’s MSD UK Holdings. That should get the deal over the line & it adds another to Dell’s growing list of debtors in English football: Burnley, Derby, Southampton & Sunderland.”

Matt Slater on Twitter

Here’s the charge registered at Companies House for anybody interested in that kind of thing https://s3.eu-west-2.amazonaws.com/docu ... 4ff66a4663

[joey13]

Last comment on this Joey as has been pointed out what is the point.... I’m not sure how many other managers would have come, it maybe needed a transitional manager to try and steady the ship after OC and Laws was available and willing to give his dream job a go, knowing the odds were stacked.

Anyway, to the next chapter.

Agreed , let’s move on

[Top Claret]

I hope we get better communications between the Yanks and the supporters, than we do with this present lot

[Chester Perry]

“ALK Capital’s Burnley takeover vehicle Calder Vale Holdings Ltd is borrowing money from Michael Dell’s MSD UK Holdings. That should get the deal over the line & it adds another to Dell’s growing list of debtors in English football: Burnley, Derby, Southampton & Sunderland.”

Matt Slater on Twitter

This is not good news, straight to debt when we have worked so hard to erradicate it in a time of economic uncertainty for the game

FYI Dell Holdings has been doing very well from financing football - Sunderland, Derby and Southampton among those that have borrowed substantially in the last year

[joey13]

Anybody else been on google earth to look at the office building where ALK are based , or is it just me whose sad ?

[ClaretTony]

I hope we get better communications between the Yanks and the supporters, than we do with this present lot

It's a priority

[Vegas Claret]

This is not good news, straight to debt when we have worked so hard to erradicate it in a time of economic uncertainty for the game

FYI Dell Holdings has been doing very well from financing football - Sunderland, Derby and Southampton among those that have borrowed substantially in the last year

wonder if this is to get it over the line quicker ? seems a strange move otherwise

[aggi]

“ALK Capital’s Burnley takeover vehicle Calder Vale Holdings Ltd is borrowing money from Michael Dell’s MSD UK Holdings. That should get the deal over the line & it adds another to Dell’s growing list of debtors in English football: Burnley, Derby, Southampton & Sunderland.”

Matt Slater on Twitter

Hadn't heard of him involved in football before. Interestingly MSD UK Holding isn't controlled by Michael Dell which seems strange.

Full documents are on companies house for those who want a read https://find-and-update.company-informa ... ng-history

For better or worse this is the murky waters we may now be entering.

[Chester Perry]

I did say I was apprehensive about the takeover and this is one reason why - deeply saddened by this news

[Bosscat]

Anybody else been on google earth to look at the office building where ALK are based , or is it just me whose sad ?

Just you Joey

[Bigvince]

All of a sudden I’m feeling quite worried, rather than excited!

[ClaretTony]

All of a sudden I’m feeling quite worried, rather than excited!

From excitement to worried via one tweet

[Top Claret]

This is not good news, straight to debt when we have worked so hard to erradicate it in a time of economic uncertainty for the game

FYI Dell Holdings has been doing very well from financing football - Sunderland, Derby and Southampton among those that have borrowed substantially in the last year

That isn't a bad thing with borrowing rates being at an all time low, this will probably free up more money for the managers transfer kitty

Everything will be fine has long as we remain in the Premier league

[1HappyClaret]

I recall somewhere on this thread that they said Michael Dell was involved. Someone who had their ear to the ground. Can’t remember who it was.

[Bigvince]

Isn’t that what the glaziers did a Man U, borrowed money to buy the the club, then all the debt was taken on by the club! The old saying “ be careful what you wish for” springs to mind

[claptrappers_union]

Not sure why this reply was to me, I was only saying there is luck with any managerial appointment...

I was just following on from what you posting and I agree with you.

[arise_sir_charge]

I did say I was apprehensive about the takeover and this is one reason why - deeply saddened by this news

Why? Knowing that the money is coming from something such as Dell Holdings is arguably as clean as it could be.

[Chester Perry]

wonder if this is to get it over the line quicker ? seems a strange move otherwise

A club like ours should be able to secure better lines of credit (and interest rates) than Dell Holdings offers - the thing is ALK do not yet own the club and they want to move in the transfer market - it may be a short term move before replacing with better credit facilities (post takeover) or even with real cash in the next few months.

To kick off ownership by accruing new debt is far from an auspicious or positive beginning - we have the lowest debt position (including outstanding transfer commitments) in the top 2 divisions - that could all change by Saturday.

[Rileybobs]

Everything will be fine has long as we remain in the Premier league

Famous last words.

[Bigvince]

Why? Knowing that the money is coming from something such as Dell Holdings is arguably as clean as it could be.

Might be clean, but what happens when they want it back, and we haven’t got it?

[mill hill claret]

But weren't we always gonna be in debt with this takeover ? Whether it be alk or anyone who is backing them .

[Chester Perry]

Why? Knowing that the money is coming from something such as Dell Holdings is arguably as clean as it could be.

it was rumoured Southampton were paying over 11% in interest

[arise_sir_charge]

I recall somewhere on this thread that they said Michael Dell was involved. Someone who had their ear to the ground. Can’t remember who it was.

Yes and like with most things, I seem to recall they were ridiculed.

[Rileybobs]

But weren't we always gonna be in debt with this takeover ? Whether it be alk or anyone who is backing them .

Not if ALK were using their own wealth to purchase the club and/or fund transfers.

[ClaretTony]

Somebody'told me Michael dell was involved in the investment how true that is time will tell.

Time is telling Sheedyclaret

[Top Claret]

With the present situation if we don't spend what we have or look to accuire some debt we will be heading back to the championship.

The club can't carry on with the present board running the club on a shoe string, we have to take some gambles to retain our present status

[NewClaret]

Having the 27th richest person in the world backing the club is no bad thing, in my opinion.

[aggi]

Might be clean, but what happens when they want it back, and we haven’t got it?

Well according to the documents they can appoint a receiver in that instance.

[arise_sir_charge]

Might be clean, but what happens when they want it back, and we haven’t got it?

Why won't we have it?

Why don't people just await information before assuming things are good/bad/indifferent.

[ClaretTony]

Why won't we have it?

Why don't people just await information before assuming things are good/bad/indifferent.

I'll say nothing else on this other than to point to this last sentence from arise_sir_charge

[Bigvince]

He’s not backing the club by the sounds of it, but lending the money for a sizeable return

[claptrappers_union]

Nothing wrong with going into debt, it’s about managing the debt

[Spijed]

Everything will be fine has long as we remain in the Premier league

But there is no guarantee that we will. We don't want to be saddled with debt.

[Jakubclaret]

Having the 27th richest person in the world backing the club is no bad thing, in my opinion.

You need to ask why though? There’s a possibility you might not like the answer.

[joey13]

Not if ALK were using their own wealth to purchase the club and/or fund transfers.

They aren’t though , are they ?

[Taffy on the wing]

Absolutely I’m happy to defend Laws. He was offered and took the job he had always wanted, for reasons mostly beyond his control he NEVER had more than one in a million chance here.

Laws doesn't/didn't possess an ounce of managerial talent!......That was the main reason for his failure.
Empty headed Dolt! The worst appointment i've seen. Sorry.

[Chester Perry]

With the present situation if we don't spend what we have or look to accuire some debt we will be heading back to the championship.

The club can't carry on with the present board running the club on a shoe string, we have to take some gambles to retain our present status

I actually think we were in a reasonably strong position - particularly given that the return of fans is now unlikely this season.

We had made adjustments to costs to ensure that we would be operationally profitable (if Norwich get promoted) or close to break even this season - which would close completely debt free (including transfers) - we appear to be strong enough to retain Premier League status and there is suggestion that we have some money to spend in January- not much but actual cash when all other teams are really struggling.

There are definitely more tv/sponsorship rebates in the pipeline and the sales for the next cycle look challenging - it has been very good fiscal management by the club

[Jakubclaret]

They aren’t though , are they ?

Facts are just an inconvenient obstacle to the likes of rileybobs.

[mill hill claret]

Did people really expect a takeover with no debt ?

[1HappyClaret]

Kettering Holdings also has a charge

https://find-and-update.company-informa ... 30/charges

[Rileybobs]

They aren’t though , are they ?

Aren't what?

Someone suggested that we were always going to end up in debt with a takeover, which obviously isn't true. If ALK have the funds to buy the club without borrowing money then the club wouldn't need to take on any debt. Likewise, if ALK borrow money to purchase the club then the debt could be secured against ALK, rather than the football club.

I haven't looked through the report linked above and I'm happy to wait until this completes before casting judgement. But it appears that when the takeover is completed, the club will be taking on a debt - which definitely wasn't a certainty to happen.

[Chester Perry]

Nothing wrong with going into debt, it’s about managing the debt

very true, but borrowing significant sums when the key areas of revenue - TV/sponsorship - are shrinking due to rebates and the TV deals for the next cycle are expected to stagnate at best at a time when the club was operating at operational break-even before Covid does not offer confidence about meeting the costs of debt servicing without affecting the footballing side

[Zlatan]

I did say I was apprehensive about the takeover and this is one reason why - deeply saddened by this news

If you’re worried that makes me worried.

[Rileybobs]

Did people really expect a takeover with no debt ?

Why would they not?

[elwaclaret]

We do not know the reasons behind anything that is going on, or even Dell is financier or part of the consortium itself and providing clarity to get the deal done. It could be all good news.

Let’s wait and see, we can do little else anyway

[Rileybobs]

Facts are just an inconvenient obstacle to the likes of rileybobs.

What facts are an inconvenient obstacle to me? Your post doesn't seem to have any relevance to the conversation that I'm having with other posters.

[mill hill claret]

very true, but borrowing significant sums when the key areas of revenue - TV/sponsorship - are shrinking due to rebates and the TV deals for the next cycle are expected to stagnate at best at a time when the club was operating at operational break-even before Covid does not offer confidence about meeting the costs of debt servicing without affecting the footballing side

We dont even know how much we're borrowing though ..

[jedi_master]

The 27th richest man in the world does not invest in Burnley Football Club for a return. Perhaps he’s a football fan and nothing more? Maybe he knows Alan Pace personally? We know nothing, so why worry till things are clearer and we actually hear from our Chairman?

I always anticipated debt of some form being put on to the club with this takeover. It’s about how that is serviced and what the interest rate is like. If ALK believe they can invest enough money into the first team, whilst also signing/scouting prospects to ripen and sell, with the TV money servicing that debt and sales from those ripened prospects then it’s an understandable strategy. Is it a gamble? Of course it is. So is signing one ageing midfielder for only a million quid when the squad needed an overhaul and praying we stay up year after year.

There’s no middle ground, we either stretch things (as Dyche would say) or we gamble on Dyche continuously working miracles with next to nothing. This may well bite me on the arse, but I think Sean Dyche with money (in much the same way as Rouwen Hennings left foot) is a weapon. I don’t foresee relegation being on the agenda with how well he sets up a defence.

[Bigvince]

Nothing wrong with going into debt, it’s about managing the debt

Managing the debt, when your income could plummet, at any time through relegation from the premier league, could be extremely difficult.