Bloomberg article

[Claretprinter]

Sports investment firm ALK Capital is looking to raise around £150 million ($200 million) for its multi-club strategy, according to people familiar with the matter.

ALK Capital, the controlling shareholder of newly promoted English Premier League team Burnley FC, has held initial discussions with potential investors about the fundraising, the people said. Deliberations are ongoing and details of the fundraising could still change, said the people, who asked not to be identified as the information is private.

New York-based ALK aims to build a multi-club sports platform, according to its website. The firm is in talks over buying a stake in the Spanish football team RCD Espanyol de Barcelona, the Athletic reported earlier this month. Espanyol, which competes in the first division of Spain’s La Liga, is owned by Shenzhen-listed online game developer Rastar Group.

Representatives for ALK and Burnley declined to comment on the fundraising plans and potential talks for an investment into Espanyol. A spokesperson for Espanyol couldn’t immediately be reached for comment.

https://www.bloomberg.com/news/articles ... b-strategy

[Chester Perry]

it is transposed word for word above - but for future reference here is an archive copy of the article which also helps with the paywall issue if you want to see the original

Burnley FC Owner Seeks £150 Million for Multi-Club Strategy
https://archive.ph/ZyjW3

[Vegas Claret]

not being funny, but what do they think they can achieve with only 150 million

[equinox]

not being funny, but what do they think they can achieve with only 150 million

Insurance, prestige, kudos ect.

[elwaclaret]

not being funny, but what do they think they can achieve with only 150 million

Not much at the level they seem to be aiming, therefore it suggests they are 150m short of their target for said investments.

[Big Vinny K]

not being funny, but what do they think they can achieve with only 150 million

Guess it specifically relates to buying Espanyol
Spanish tv deal is very different to ours - Real and Barca get majority of the money irrespective of where they finish in the league and the gulf in tv money between the big and smaller clubs far more than EPL.

Revenue wise our TV money will dwarf a number of clubs in La Liga - as it does with a number of clubs across the big European leagues like Italy, France and Germany

[NewClaret]

Guessing this is just to buy Espanyol so no benefit for us, unfortunately.

[Corway]

Guessing this is just to buy Espanyol so no benefit for us, unfortunately.

If they use our clubs assets as security for any loan and we get relegated we could be stuffed.

[Chester Perry]

If they use our clubs assets as security for any loan and we get relegated we could be stuffed.

Our club's assets are already being used as security for loans with both Fasanara Capital and MGG

I

[NewClaret]

If they use our clubs assets as security for any loan and we get relegated we could be stuffed.

This is referring to a capital raising. So ALK issuing nee shares or units in its fund to raise cash.

[Spike]

The Loan Arranger rides again

[Paul Waine]

not being funny, but what do they think they can achieve with only 150 million

It's roughly the amount needed to buy Espanyol.

[Paul Waine]

Guessing this is just to buy Espanyol so no benefit for us, unfortunately.

Benefit to BFC is that ALK investor base will be larger. Hard to say how much larger because we don't know how much has already been paid into ALK by investors.

Investors will be attracted by opportunities/successes of both BFC and Espanyol (assuming Espanyol purchase completed).

[Paul Waine]

If they use our clubs assets as security for any loan and we get relegated we could be stuffed.

ALK is seeking new equity investors, not adding to loans. Spanish law does allow leveraged purchases - according to reports - so, this is not about more borrowing.

[Paul Waine]

The Loan Arranger rides again

The loan arranger is going nowhere. ALK is seeking new equity investors. This is good for BFC. New investors will be investors in ALK and benefit from success and opportunities of both BFC and Espanyol.

UTC

[Corway]

The loan arranger is going nowhere. ALK is seeking new equity investors. This is good for BFC. New investors will be investors in ALK and benefit from success and opportunities of both BFC and Espanyol.

UTC

Thanks but shouldn’t they have lined up investors with £110m first and maybe even more to help pay back loans they charge to BFC accounts?

[Paul Waine]

Thanks but shouldn’t they have lined up investors with £110m first and maybe even more to help pay back loans they charge to BFC accounts?

If the ALK investors feel that that is what needs to happen it would very likely happen. On the other hand, it's probably not the best way to allocate new investments; the opportunity to buy Espanyol and to become a multi-club operation will be a bigger and more attractive opportunity, if things go well, and that's what will attract investors to invest new money in ALK.

UTC

[willsclarets]

The loan arranger is going nowhere. ALK is seeking new equity investors. This is good for BFC. New investors will be investors in ALK and benefit from success and opportunities of both BFC and Espanyol.

UTC

It's not all monetary considerations that weigh the positive/negative scale here though. You can't seriously invest in the community and relationship with supporters if you're equalising a model across different clubs. Everything is about efficiency and profit. It will also likely add a further lack of transparency when it comes to management structure. Not a fan of the idea.

[FeedTheArf]

not being funny, but what do they think they can achieve with only 150 million

Well they managed to buy us with about £15m of their own money. By that logic, they could buy another 10 on leveraged buyouts.

[Casper2]

I wonder what all the sycophants will say when it all goes tits up , probably be like Trump supporters .

[CyrilEbokiPoh]

Thanks but shouldn’t they have lined up investors with £110m first and maybe even more to help pay back loans they charge to BFC accounts?

The problem is whether we like it or not. Unlike conventional mortgages / borrowing. When it’s leveraged in those way. There is no end by which it has to be paid. You can keep remortgaging for eternity. (It’s what a lot of businesses and especially property investors do) they can basically borrow money to (try and) make more money.

[Row x]

I wonder what all the sycophants will say when it all goes tits up , probably be like Trump supporters .

At least they won't be invited to your street party

[Paul Waine]

MODs: Suggest this thread is merged with Pace/ALK set to buy Espanyol? thread.