Burnley Takeover

[Stan]

 

 

[Dave]

Im fascinated to see what happens next. They've been such a run well club on a shoe string that's caused them to build an identity. If the new owners have their own ideas it could be interesting to see what happens.

[Mel81x+]

Should Burnley be spending in the transfer window coming up? I'd imagine they will be some activity there as they aren't really safe from being on the verge of the relegation zone and they've got Liverpool, Villa, Cheslea and City coming up. If they can beat Fulham maybe it can be relaxed a bit but you'd imagine they want to start distancing themselves a bit from the rest of the bottom pack. 

[CaaC (John)+]

Quote

Burnley takeover: New owner Alan Pace promises 'unique' approach

New Burnley owner Alan Pace says he intends to adopt a unique approach to running the Premier League club.

Pace's ALK Capital Investment Group has spent around £170m to take an 84% controlling stake in Burnley.

Unlike most of the Premier League's overseas owners, American Pace has moved to the UK from New York to take a hands-on role in running the Clarets.

"I don't think you have ever seen anyone like me," said the 53-year-old former Wall Street banker.

"You certainly haven't seen someone like me come in to run a football club and interact and live with the community where they are going to operate."

Given the measures imposed by the government to combat the coronavirus pandemic, Pace says the only places he actually knows around Burnley are Turf Moor and the local supermarket.

Pace, who is a former president of MLS club Real Salt Lake, will take over as Clarets chairman from Mike Garlick.

However, Garlick - who sold his near 50% stake in the club - and fellow former shareholder John Banaszkiewicz will remain at Turf Moor as directors.

"We do mean it when we say we are as concerned about the long-term viability of this club as if we were a family member," said Pace.

"We are not going to do stupid stuff. We may say silly things that people take issue with but we are going to act differently and we are going to show that in the things we do."

Acting differently in the short term means providing manager Sean Dyche with funds to strengthen his squad in the January window.

Pace says it is "important but not essential" Burnley preserve their top-flight status.

"You have one billion people interacting with you in the Premier League," he said.

"It is like an actor, you want to be on the main stage but it doesn't mean you cannot make an artsy movie somewhere."

However, given the uncertainty around 16th-place Burnley remaining in the Premier League and the heavy financial impact the pandemic continues to have on football in this country, it is no surprise Pace admits there have been plenty of occasions over the past few months when he considered abandoning the project.

"Yes, at multiple points we thought it wasn't going to be for us," said Pace, who tried and failed to complete a deal for Sheffield United prior to setting his sights on Burnley.

"When we went into lockdown last year we had to think long and hard about what it was going to look like. Project Restart really helped us to understand what was going to be possible."

If there is unease amongst Burnley fans, it comes through the funding of Pace's project.

Pace won't say exactly how much he has borrowed from Michael Dell's MSD UK Holdings but it is clearly a significant sum, which brings back uncomfortable memories of how the Glazer family funded their purchase of Manchester United, plunging the club into a huge amount of debt.

"I believe there is a way to be financially responsible that is sustainable," he said.

"The loans for this transaction are absolutely reasonable and in line with what can be supported by this club and will not take away from the club's ability to operate on a daily basis.

https://www.bbc.co.uk/sport/football/55551717

 

[CaaC (John)+]

2 minutes ago, CaaC (John) said:

Pace won't say exactly how much he has borrowed from Michael Dell's MSD UK Holdings but it is clearly a significant sum, which brings back uncomfortable memories of how the Glazer family funded their purchase of Manchester United, plunging the club into a huge amount of debt.

Gulp    

[DNA]

"It is like an actor, you want to be on the main stage but it doesn't mean you cannot make an artsy movie somewhere."

I like the guys wit. Looks like another version of  more of the same though really, the ceiling is only so high, the division is oversaturated to the point we could be going from a top 6 to a top 8 this season, ridiculous stuff.

[Dr. Gonzo]

1 hour ago, CaaC (John) said:

Gulp    

Yeah that might make the bit about premiership survival not being as "necessary" a bit... well... bullshit. Obviously it depends on how much is owed and the terms of repayment - and maybe the loan accounts for a loss of TV revenue that comes with relegation... but it could definitely mean self-sufficiency is only really possible with the TV revenue.

[Smiley Culture]

That article would fill me with absolutely zero confidence, if I was a Burnley fan. 

[Pyfish+]

It doesn't exactly inspire confidence does it. It does just feel he's paraphrasing from the same script other owners have used when taking over clubs. More of the same but a different way of saying it.

I don't mind Burnley, I did an episode of my podcast on them just before Christmas and they are one of those clubs with a real family and community feel so hopefully they can keep that with the new ownership too.

[Honey Honey]

I still don't understand how anyone is allowed to buy a football club using loans which that football club and not the individual must pay off. Why does this shit get approved? 

 

[CaaC (John)+]

14 hours ago, CaaC (John) said:

"Yes, at multiple points we thought it wasn't going to be for us," said Pace, who tried and failed to complete a deal for Sheffield United prior to setting his sights on Burnley.

So if the Burnley deal had gone down the drain like the Sheffield United deal I wonder who he (or them) would have set their sights on next? maybe Newcastle @Steve Bruce Almighty? 

[Burning Gold]

Moving to Burnley from New York to be hands on is probably a good thing for the club and it'll make some supporters happy, but to me it mostly sounds like a rich guy trying to buy himself some meaning and community (with another rich guy's money)

[Honey Honey]

13 minutes ago, CaaC (John) said:

So if the Burnley deal had gone down the drain like the Sheffield United deal I wonder who he (or them) would have set their sights on next? maybe Newcastle @Steve Bruce Almighty? 

Based on how much money he had and loan he could get he couldn't afford us. Part of our problem, the price is so high it makes no sense for anyone to buy us.

That could be a blessing in this case. A bloke who doesn't care if Burnley go down. They're destined for mid table Championship unless by complete chance something good happens.

[ScoRoss]

[Honey Honey]

Fit and proper. Thank you Richard Masters.

[Redcanuck]

Have the new owners used any of their own money?  Or is this is a leveraged buyout where they are using the club and its assets as collateral to borrow money from a hedge fund?  Seems they have drained the club's cash on hand as well. Though it is on a smaller scale this is no different then what the Glazer's did to United.    Sticking a club the size of Burnley with close to £100m in debt is criminal.  It could take years for Burnley to get out of debt and if they pay millions in dividends to their owners similar to United, Burnley will never get out of debt.

The "Fit and Proper" test the Premier has regarding owners is a joke,  if it had any teeth there would be a number of present owners who wouldn't have qualified to buy their teams.

[Bluebird Hewitt]

16 hours ago, Redcanuck said:

Have the new owners used any of their own money?  Or is this is a leveraged buyout where they are using the club and its assets as collateral to borrow money from a hedge fund?  Seems they have drained the club's cash on hand as well. Though it is on a smaller scale this is no different then what the Glazer's did to United.    Sticking a club the size of Burnley with close to £100m in debt is criminal.  It could take years for Burnley to get out of debt and if they pay millions in dividends to their owners similar to United, Burnley will never get out of debt.

The "Fit and Proper" test the Premier has regarding owners is a joke,  if it had any teeth there would be a number of present owners who wouldn't have qualified to buy their teams.

Tbh, the whole thing is a joke. You only have to read up on Wigan's situation to show how unfit the 'Fit and Proper' test actually is. 

[Dave]

There priority is to promote Burnley as a global underdog to attract fans overseas. They also have a track record of placing debts on assets they own for those investments to be better off in the long term. Effectively what they are doing is fine until the club gets relegated as without the TV cash flow the club will be absolutely screwed.