ALK Capital or Farnell/Elkashashy takeover

[NewClaret]

Can we ring our Egyptian mate back up, ask him if his bid is state funded and if so accept it?

There would be even more concern about a state owning us, I’m sure!!

[OffTheBar]

something to consider about that MSD Holdings loan to ALK vehicles Calder Vale Holdings and Kettering Capital - I stress that this may/may not be connected

https://twitter.com/redfern_i_j/status/ ... 0769436675

Those notes aren’t at 10%, and were issued in October.

Taking on some debt is not a problem; we are going to have to fund transfers somehow if we are to move on up.

It’s hardly news that a private equity company would use debt. It doesn’t mean it is being used for the acquisition either.

[prettygreenclaret]

I'm amazed how many corporate finance experts we have on here. Certainly not myself but please can we just see what ALK come out and say when this is all put to bed and then try to draw conclusions from there.

[Hedontplayforyou]

Is tomorrow the day?

[NewClaret]

Is tomorrow the day?

You’d imagine, given the 48 hour timeline they set!

[FactualFrank]

Is tomorrow the day?

Probably overmorrow.

[Hedontplayforyou]

You’d imagine, given the 48 hour timeline they set!

[WalkdenClaret]

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

No, not just you joey !

All 3 addresses (tax haven Delaware, New York and London) are small office spaces, used primarily for short term meetings.

Fingers crossed the mysterious buyer is saving money so that the soccer supremo Alan Pace can buy all of the players on the Skysports list.

Exciting times.

UTC

[icu81b4]

Just announced on the ALK website

https://alkcapital.com/news-media/

UTC

[Aclaret]

Just announced on the ALK website

https://alkcapital.com/news-media/

UTC

Hallelujah, at last. Yankee doodle dandy. UTC.

[icu81b4]

MEDIA RELEASE ON BEHALF OF ALK CAPITAL & BURNLEY FOOTBALL CLUB
ALK CAPITAL COMPLETES INVESTMENT IN BURNLEY F.C.
• Velocity Sports Partners (VSP), the sports investment arm of US management firm ALK Capital, acquires majority shareholding in Burnley F.C.
• VSP now holds a controlling 84% stake in the club, with the investment signalling a new era for the Clarets, building on the club’s history and recent successes
• Former shareholders Mike Garlick and John Banaszkiewicz to remain at Turf Moor as directors, working in partnership with new chairman Alan Pace.
BURNLEY, ENGLAND: ALK Capital – the leading US management firm specialising in investments in the sports and media sectors - today completed its investment in Burnley F.C.
The deal, approved and ratified by the Premier League, sees ALK Capital’s sports investment arm, Velocity Sports Partners, acquire an 84% shareholding in the club, which was English champions in 1921 and 1960. The firm’s Managing Partner Alan Pace will take over from Mike Garlick as club chairman.
Garlick, alongside former shareholder John Banaszkiewicz, will remain on ALK Capital’s new board of directors at Burnley, ensuring a smooth transition to new ownership and providing valuable knowledge from his eight-year tenure as club chairman. This successful period has seen two promotions to the Premier League, development of the Barnfield Training Centre, and European football at Turf Moor for the first time in more than half a century.
Mike Garlick, outgoing chairman and director of Burnley F.C., said:
“This investment represents a natural progression for Burnley Football Club. In Alan Pace and his team, we are welcoming committed investors to Turf Moor who will be living here in the local community and investing in the club, both on and off the football pitch, for many years to come. My tenure as chairman has always been about ensuring Burnley is a sustainable football club, and this investment provides a long-term plan to maintain that philosophy, whilst driving evolution and innovation.”
Alan Pace, incoming chairman and Managing Partner of ALK Capital, said:
“Today marks a new era for Burnley as we become stewards of this historic football club and build on the impressive work that Mike Garlick, Sean Dyche and everyone at Burnley has done to make it a financially stable, established Premier League club that is a cornerstone of the local community. With a rich heritage, a brilliant academy, and a passionate fan base, this club has solid foundations to build upon. This is the start of an exciting journey for the entire Clarets family.”
ALK Capital’s investment aims to secure the long-term future of Premier League football in Burnley, with a new management team providing a wealth of operational and technological expertise along with a sustainable growth plan centred on advancing the club, its academy and Burnley’s commercial footprint, whilst upholding the club’s core values and identity.

Pace, aged 53, brings 20 years in the financial services industry and over a decade of sports management experience to Burnley. A dual British American national, he was formally a Managing Director and Global Head of Sales for Securities Services at Citi, responsible for overseeing a multibillion-dollar division. Alan is a former partner at SCP Worldwide LLC – owner of sports, entertainment and media properties – and a previous CEO of Major League Soccer franchise Real Salt Lake, where he oversaw the transformation of a consistently last-place team to winning the 2009 MLS Cup.
The acquisition of a majority stake in Burnley builds on ALK Capital’s recent entry into the European sports market with two strategic investments in London-based football technology businesses AiScout and Player LENS.
ENDS
For further information or media enquiries, please contact: Paul Garbett, +44 7467 446231, paul.garbett@alkcapital.com
About ALK Capital:
Velocity Sports Partners is the sports investment arm of ALK Capital LLC, the leading US management firm specialising in investments, acquisitions and operations in sports and media. Registered in the State of Delaware, the company benefits from a seasoned team of sports, finance and investment professionals with decades of experience in maximising the performance, operations and investment of multiple Fortune 100 companies.
The group is headed by Managing Partner Alan Pace, an accomplished leader in sports and financial services turnarounds with over 20 years of Wall Street experience and 10+ years of delivering results through sports management and consulting. Most recently, Alan was a Managing Director and Global Head of Sales for Securities Services at Citi, responsible for overseeing all facets of client experience for a multibillion-dollar division.
Alan is a former partner at SCP Worldwide LLC – owner of sports, entertainment and media properties – and a previous CEO of Major League Soccer franchise Real Salt Lake, where he oversaw the turnaround of a consistently last-place team to winning the 2009 MLS championship. He is an advisor to team owners and leagues.
About Burnley F.C:
Burnley F.C is a Premier League football club from the town of Burnley in East Lancashire. Founded in 1892, it was one of the first to turn professional in 1893, the same year the club moved to its home ground, Turf Moor, making it the second-longest continuously used stadium in English professional football.
The club enjoys a rich history in English football, being crowned champions of England on two occasions in 1920–21 and 1959–60. The club lifted the FA Cup in 1914 and has twice won the FA Charity Shield, in 1960 and 1973.
Burnley F.C is in its fifth consecutive season in the Premier League, having most recently won promotion back to the top-flight as winners of the Championship in 2015–16. The club has spent 58 seasons overall in the highest division of English football, qualifying for continental competition on three occasions, including reaching the Quarter Finals of the European Cup in 1960-61.
The club benefits from a Category 1 Premier League academy, which has produced home-grown talent such as England international Jay Rodriquez and England U21 international Dwight McNeil.
Burnley F.C. is proudly affiliated with Burnley F.C. Women, which plays in the FA Women's National League North having achieved back-to-back promotions, as champions of the FA Women's National League Division One North in 2018-19 and North West Women's Regional Football League in 2017-18.

[Nonayforever]

84% purchase

[BurnleyFC]

They’re out by 10 years on when we were founded.

Sack the board!

[claptrappers_union]

Only took 138 pages

[Chester Perry]

They’re out by 10 years on when we were founded.

Sack the board!

a strange oversight - but then again a strange way of breaking the news - not using the club website/twitter account

[Aclaret]

Hallelujah, at last. Yankee doodle dandy. UTC.

Just to add.......exciting times. UTC.

[jedi_master]

Strap yourselves in

Best wishes to our new American overlords. I am optimistic as I always try to be with most things in life. One superb era ends, another begins.

[BurnleyFC]

Garlick staying on as a director. I’m sure Sean will be delighted.

[Rileybobs]

Garlick staying on as a director. I’m sure Sean will be delighted.

Presumably Pace will be well aware of the rift between the two so I wouldn’t expect them to have to deal with each other on a regular basis.

[Chester Perry]

84% purchase

suggests that most directors have sold portions of their shareholdings if not all their shareholding

[Father Jack]

No sports journalists reporting the news on Twitter either - normally the fastest route for breaking news.
If icu81b4 hadn’t happened to be looking at the ALK website at 10:50 would we have even known?

Doesn’t matter ultimately but feels like it would have more fan fair!
Roll on the new era & the transfer window!

[Stevie Morgan]

Taken off the site now!

Maybe the error in the year of formation.

[kaptin1]

The link doesn’t seem to show the press release referred to. Maybe it’s been taken down or maybe I’m looking in the wrong place?

[NewClaret]

Glad it’s done.

Hope we get to find out more about their plans very soon!

[claptrappers_union]

Maybe it was published prematurely by accident. Looks like it’s done though

[Rileybobs]

Looks like we can expect communication from the club to improve.

[kaptin1]

Maybe it was published prematurely by accident. Looks like it’s done though

They’ve just realised deals at Burnley can only be announced on a Thursday and we’re not quite there yet

[SGr]

And so it is.

[BurnleyFC]

Maybe Chris and Mohamed have hijacked it at the eleventh hour?

[icu81b4]

And the press release has now been removed from the ALK site

[NewClaret]

Someone posted too soon! Bet they realised by reading this thread!

[NewClaret]

Maybe Chris and Mohamed have hijacked it at the eleventh hour?

[CrosspoolClarets]

Great news (when official)

I’m looking forward to seeing what AiScout and PlayerLENS can do for us - it isn’t Moneyball, but seems to be what Pace sees as the future, and I would expect player purchase and development, and then profit from future player sales to be a key part of the strategy. I’m sceptical that we do what wealthier clubs cannot, but we will see.

I’m worried about the balance sheet post purchase but will keep an open mind. The directors will come out of this very nicely so where does the “debit” sit for their “credit”? Or more pertinently, regardless of where it sits in an accounting sense, if our income stays the same and the directors are paid off, will we see funds for any improvement?

Mike Garlick staying on is good news as long as Sean can work with him around.

Decent media release. “Start of a journey” is a bit condescending given the journey we have had in the last decade, but they are trying to win over the fans, no harm in that.

A real shame for ALK that no fans are allowed on to see this journey begin.

[NewClaret]

Alan on the phone to his Press Officer... “I said 11am, not 11pm”!

[kaptin1]

Maybe they’ve just realised it’s not Barnsley they’ve been trying to buy

[Chester Perry]

this is a pdf of that release

https://secureservercdn.net/50.62.198.9 ... ion-v6.pdf

[aggi]

Just announced on the ALK website

https://alkcapital.com/news-media/

UTC

Am I the only one who can't see anything about it on the website? The only press release is about AI Scout

[Nonayforever]

suggests that most directors have sold portions of their shareholdings if not all their shareholding

Which begs the question why would you sell something that you are being told is going to appreciate in value when you don't need to.

[NewClaret]

Am I the only one who can't see anything about it on the website? The only press release is about AI Scout

They’ve removed it mate.

Only CP has kindly saved it and reposted it above

Oooops!

[NewClaret]

Which begs the question why would you sell something that you are being told is going to appreciate in value when you don't need to.

Because most of them are knocking on and fancy being able to spend it before the next chance to sell!

[jedi_master]

Photo grabbed before it was pulled:

https://twitter.com/pie_pint/status/134 ... 17792?s=21

[kaptin1]

Great news.

I’m looking forward to seeing what AiScout and PlayerLENS can do for us - it isn’t Moneyball, but seems to be what Pace sees as the future, and I would expect player purchase and development, and then profit from future player sales to be a key part of the strategy. I’m sceptical that we do what wealthier clubs cannot, but we will see.

I’m worried about the balance sheet post purchase but will keep an open mind. The directors will come out of this very nicely so where does the “debit” sit for their “credit”? Or more pertinently, regardless of where it sits in an accounting sense, if our income stays the same and the directors are paid off, will we see funds for any improvement?

Mike Garlick staying on is good news as long as Sean can work with him around.

Decent media release. “Start of a journey” is a bit condescending given the journey we have had in the last decade, but they are trying to win over the fans, no harm in that.

A real shame for ALK that no fans are allowed on to see this journey begin.

Suspect there will be a holding company structure which borrows the money and then invests this into the operating company (the football club) as equity. So the debt will sit in the holdco and the opco will essentially appear to be debt free. So you will need to follow the paper trail in the ownership structure to fully understand the financing.

[ClaretTony]

Garlick staying on as a director. I’m sure Sean will be delighted.

That was always going to happen. I think you will find he’s retaining some of his shares to enable him to do so.

[Chester Perry]

That was always going to happen. I think you will find he’s retaining some of his shares to enable him to do so.

Which is why I was suggesting probably all current directors have sold some/all their shares

[CrosspoolClarets]

That pink shirt on that link won’t last long in a town like Burnley, try wearing that in the Big Window

Only joking Alan, welcome to the Clarets

[kaptin1]

That was always going to happen. I think you will find he’s retaining some of his shares to enable him to do so.

He doesn’t need to own shares to enable him to be a director but it is sensible for him to retain some for all parties as it makes sure their interests are aligned as shareholders

[ClaretTony]

He doesn’t need to own shares to enable him to be a director but it is sensible for him to retain some for all parties as it makes sure their interests are aligned as shareholders

Back in the old Teasdale days the articles of association insisted that you had a minimum of 100 shares to be a director. I don't think that's been removed, in fact I think it's been increased by a significant number.

[Paul Waine]

Profit is a paper figure accounting for things like depreciation which are non cash based.
You will see the profits in the accounts but not necessarily in the bank account.

Example

You buy something for 1m and sell it for 2m you make a 1m profit

However you agreed to buy the player in 2 installments of 500k. You only make the 1st payment before you sell. The person buying the thing will only pay you in 4 installments of 500k you receive the first payment which settles the debt to the original seller.
You therefore have no additional cash in the bank.

The balance sheet will show a creditor of 1.5m
The second payment comes in so you have 500k in the bank
The creditors decrease by that amount but cash in the bank increases by same amount.

Hi dp, neat example. A little correction: if you are owed money by someone they are your debtor - and if you owe someone money then they are your creditor. It can be confusing, because we are all used to being "in credit" or having a "debit against us." It's all because the language has developed from the banker's or lender's point of view. Your bank statement shows you being "in credit" when the bank is holding your money - and owes your money to you.

In simple balance sheet terms, both cash and debtors are assets, and are on the same side of the balance sheet: whether the club holds £500k cash and a debtor of £1.5m, total = £2m or no cash and £2m debtor the club has the same total assets... etc etc.

EDIT: There's me posting about debtors and creditors - while missing that ALK have posted that they've acquired Burnley.

And, I deliberately left off - Exciting times - UTC - because balance sheets and accounting just isn't that interesting.

Well here goes....

EXCITING TIMES

UTC

[Super Teds]

'Burnley F.C is a Premier League football club from the town of Burnley in East Lancashire. Founded in 1892, it
was one of the first to turn professional in 1893, the same year the club moved to its home ground, Turf Moor,
making it the second-longest continuously used stadium in English professional football.'

Those dates aren't right are they? Also, who has the longest continuously used stadium? Good quiz question...

[kaptin1]

Back in the old Teasdale days the articles of association insisted that you had a minimum of 100 shares to be a director. I don't think that's been removed, in fact I think it's been increased by a significant number.

Interesting, didn’t know that. It’s unusual for companies to have that requirement. But it makes sense for directors to hold shares for the reason I outlined above.