Skip to main content

Burnley takeover completed

American company ALK Capital have completed their takeover of Burnley, acquiring a 84 per cent stake: https://www.skysports.com/football/news/11708/12176097/burnley-american-investors-alk-capital-complete-takeover-of-premier-league-club

The company specialises in investments in the sports and media sectors: https://alkcapital.com/  American companies have been taking over a number of European clubs during the pandemic, especially in Italy.

Normally reliable sources are indicating that the deal values the club at more than £200m and that the takeover is being funded by a number of private individuals.  The purchase is being made through Velocity Sports Partners, ALK's sports investment vehicle.

ALK intend to make funds available to Sean Dyche to strengthen the squad in the coming transfer window.  It is clearly in their interests to avoid any risk of relegation.

In August the Delaware-based company invested in two London-based football technology firms, AiScout and Player LENS.  Both companies are involved in data analytics and predictive assessment of players.

Alan Pace of ALK previously expressed an interest in buying Sheffield United.   As the new chairman of Burnley, he stated: 'With a rich heritage, a brilliant academy, and a passionate fan base, this club has solid foundations to build on.'   Mr Pace is a former CEO of Real Salt Lake which plays in MLS.

Many US companies choose to base themselves in Delaware, the home of incoming president Joe Biden, because it offers a favourable corporate legal environment.

Burnley made a pre-tax profit of nearly £5m on stable revenue of £138m in the year to end of June 2019.  This was primarily driven by Premier League broadcasting contracts.   The pre-tax profit of £45m a year earlier was inflated by selling players.   Mr Pace praised the outgoing leadership at Turf Moor for making the club 'financially stable'.

Kieran Maguire of the PriceofFootball has tweeted: 'ALK will be inheriting a club that has been (along with Spurs) the best run financially in the Premier League. This means that they have scope to invest in the transfer market should they so wish.'

I approached the local Claret for a comment (there are fans in the Royal Spa) and he said: 'I have generally expressed a hostile view as I don’t see who gains from this apart from our two largest shareholders. Alan Pace, the inspiration behind it, is mainly notable for a recruitment algorithim so I’m wondering what happens when he goes to Mr. Dyche and tells him, “Computer says you have to buy Fred Higginbottom from Rochdale"'.


Labels:

Comments

Post a Comment

Popular posts from this blog

Wolves get raw deal from FFP

  I used to see a lifelong Wolves fan for lunch once a month.   He was approaching ninety, but still went to games.   Sadly he passed away the other week. As football finance guru Kieran Maguire has noted, Wolves continue to be constrained by financial fair play rules.  Radio 4 this morning described them as this year's 'crisis club' and the pessimists have certainly been piling in. Martin Samuel wrote sympathetically in the Sunday Times yesterday, saying that the Premier League drives talent away with regulatory red tape: 'Why could Al-Hilal sign Neves? Because Wolves needed the money. And why did Wolves need the money? Because the club had to comply with an artificial construct known as financial fair play. So Wolves are going skint, yes? No. There is no suggestion that Wolves are in financial trouble, only that they are failing to meet the rigours of FFP. Wolves’ owners appear to have the money to run the club, and invest in the club, and in fact came up with a pow
Post a Comment
Read more

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day income is
Post a Comment
Read more

Charlton takeover approved

The long awaited takeover of Charlton Athletic by SE7 Partners from Thomas Sandgaard has been approved:  https://londonnewsonline.co.uk/se7-partners-obtain-efl-approval-for-charlton-athletic-takeover/ Charlton have had unhappy experiences with owners for over a decade, so how this works out will remain to be seen.  There is certainly potential there, but will it be realised? This interview with Charlie Methven gives detail not available elsewhere:  https://thecharltondossier.com/charlie-methven-on-the-record/
Post a Comment
Read more