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"'.

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When football finance guru Kieran Maguire seems flashing lights in a club's loan deal, I become concerned. He is the leading football finance expert in the UK. Hull City have borrowed £55m against their stadium and training ground yet they should get £30m from the Premier League before long. What is going on? https://www.bbc.co.uk/sport/football/articles/cpwel48y51do

The Political Economy of Football V2

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