ALK Capital or Farnell/Elkashashy takeover

[Chester Perry]

The investment stopped when the opportunity to realise personal gain was muted.It’s no coincidence that the cash reserves were increased at the expense of investment in the squad
Personal gain , actually enormous personal gain, some would say greed, was promoted ahead of the interests of the Football Club
That is why he needs to go as soon as possible .

I have explained quite clearly on this thread (and repeated it in the last few days) why the spending on transfers slowed, it is not rocket science,

[DCWat]

The investment stopped when the opportunity to realise personal gain was muted.It’s no coincidence that the cash reserves were increased at the expense of investment in the squad
Personal gain , actually enormous personal gain, some would say greed, was promoted ahead of the interests of the Football Club
That is why he needs to go as soon as possible .

Until Covid hit, he was lauded by many for an approach that would significantly reduce the financial impact of relegation.

There were those of us (myself included) who would have liked to have seen some of that money spent on players. I suspect that the vast majority supported him in building a rainy day fund, the only disagreement being to what extent it limited investment in the squad.

I couldn’t say that there wasn’t an eye on getting the best price (who in their right mind wouldn’t). Perhaps another view might be that for a sale to go ahead, the deal needed money within the club for it to work for both parties.

We have to trust, that what the previous board agreed, was in the best interests of the football club. I think it’s unfair to assume that this was solely about personal gain.

Perhaps, just perhaps, the reason that negotiations were protracted was to ensure safety nets for the club. Such as the ownership reverting if payments cannot be made.

One day, it will all come out in the wash, in the meantime, it’s supposition and quite possible that many criticisms of Garlick etc, are at the very best, unfair.

[Rileybobs]

I have explained quite clearly on this thread (and repeated it in the last few days) why the spending on transfers slowed, it is not rocket science,

Unfortunately it doesn’t take anything like rocket science to bamboozle a good number of people on here.

[WalkdenClaret]

The investment stopped when the opportunity to realise personal gain was muted.It’s no coincidence that the cash reserves were increased at the expense of investment in the squad
Personal gain , actually enormous personal gain, some would say greed, was promoted ahead of the interests of the Football Club
That is why he needs to go as soon as possible .

Garlick and Banaszkiewicz are not perfect, and as hard nosed successful businessmen no doubt want to make money. However, I suspect the reason that the board have built up cash over the last 5 seasons is the name of prudence, in the possible event of relegation.

Whilst not perfect, it is frustrating, not seeing us bid for superstars, or get rejected by agents over wage demands. I honestly think that Garlick, the board and Dyche have worked miracles in keeping us up and all the while keeping a (relative) lid on wages.

I can normally only scoff at lucky buggers 'earning' mega returns on their investments. But they have earnt their fortunes. My only issues with Garlick and Banaszkiewicz is despite being good custodians, they realise they got well and truly hoodwinked, are probably disappointed and would desperately have loved to have received an alternative bid. But as shown with Pace's desperate plea's for investment fell on deaf ears, no one in US big finance could see a quick buck (other than the preppie boys at MSD).

[Chester Perry]

I was given this piece of information by a member of London clarets this week after my article for their magazine "Something to write home about" that approached this point in much greater detail

"As it happens, Dave Baldwin came to our AGM a few years ago and he said then that if you gave the club £400m they could easily earmark it all for spending without going mad on the transfers, that most of it could be feasibly earmarked for infrastructure investment, and that only this would put the club on a level par with the bigger Prem clubs across all aspects of the club's organisation. I thought of his words after reading your piece."

the club has stretched itself throughout Mike Garlick's reign, it has taken a lot of risk - different risk to what a number of fans wanted (first 11 player investment) but risk none the less. This is because they were trying to build everything at the club, a lot of plates have been spinning and there has had to be careful prioritisation and an incredible amount of trust in the manager.

[dsr]

Garlick and Banaszkiewicz are not perfect, and as hard nosed successful businessmen no doubt want to make money. However, I suspect the reason that the board have built up cash over the last 5 seasons is the name of prudence, in the possible event of relegation.

Whilst not perfect, it is frustrating, not seeing us bid for superstars, or get rejected by agents over wage demands. I honestly think that Garlick, the board and Dyche have worked miracles in keeping us up and all the while keeping a (relative) lid on wages.

I can normally only scoff at lucky buggers 'earning' mega returns on their investments. But they have earnt their fortunes. My only issues with Garlick and Banaszkiewicz is despite being good custodians, they realise they got well and truly hoodwinked, are probably disappointed and would desperately have loved to have received an alternative bid. But as shown with Pace's desperate plea's for investment fell on deaf ears, no one in US big finance could see a quick buck (other than the preppie boys at MSD).

Up till November 2020 the purpose of the cash reserve may have been prudence in the event of relegation. Or it may not.

But in December 2020 Prudence left the building, and the purpose of the cash reserve AND the potential loan facility was to put money into the pockets of garlick and JohnB.

Garlick wasn't hoodwinked. If he had been, he would have resigned from the board of directors rather than sanction the payments.

[aggi]

I always wonder why Mike Garlick gets so much stick on here.
He's funded everything that's good about the PL era Burnley Football Club.
So, if he wants a share of any profits who can blame him?

It's the same as Mike Ashley. Some fans want a chairman to splash the cash, hand over their own money and never get anything back.

[Chester Perry]

Up till November 2020 the purpose of the cash reserve may have been prudence in the event of relegation. Or it may not.

But in December 2020 Prudence left the building, and the purpose of the cash reserve AND the potential loan facility was to put money into the pockets of garlick and JohnB.

Garlick wasn't hoodwinked. If he had been, he would have resigned from the board of directors rather than sanction the payments.

Dear Prudence, won't you come out to play?

https://www.youtube.com/watch?v=wQA59IkCF5I

[Mala591]

I wonder if Dyche has ‘requested’ a ring fenced ‘rejunification’ transfer budget for the summer transfer window.

Nothing to stop him asking for £30 million plus £100,000 per week in wages.

Mr Pace could then go out to try and raise the requested investment.

[GodIsADeeJay81]

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.

[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.