Burnley

[Pragmatist]

Has anybody seen the terms of the Burnley deal?

The new US owners have apparently bought an 84% stake for £150m, but that £150m includes £55m of the club’s own existing cash, which goes to the seller.  So all net cash is stripped out, leaving Burnley with no money to fund new players. 

The new owners have only put in £15m of their own money.  The remaining £80m has been borrowed at a high rate of interest, secured against the club’s assets under a fixed and floating charge. 

This is very unlikely to end well for Burnley. 

If Lai does sell, then let’s hope he doesn’t sell under that sort of deal.

[SW4Baggie]

Has anybody seen the terms of the Burnley deal?

The new US owners have apparently bought an 84% stake for £150m, but that £150m includes £55m of the club’s own existing cash, which goes to the seller.  So all net cash is stripped out, leaving Burnley with no money to fund new players. 

The new owners have only put in £15m of their own money.  The remaining £80m has been borrowed at a high rate of interest, secured against the club’s assets under a fixed and floating charge. 

This is very unlikely to end well for Burnley. 

If Lai does sell, then let’s hope he doesn’t sell under that sort of deal.

Is this effectively a mini Glazer style takeover?

[steviedm]

As soon as they're relegated (and it will happen sooner rather than later), the loans will be called in and it'll be game over. There's no growth in Burnley - they're not going to get into the top 6 or play in Europe. The only way is down. I'd be worried if I was a fan. As it is, I can't stand them so hope it all goes tits up.

[baggiebloke]

Burnley remains old school for me.

Get to the cricket ground early, get pissed and turn up at the turnstiles for KO and sit in someone else's wooden seat.

Never been colder at a match than Turd Moor.

[GunsOfNavarone]

Re the OP. How would we fund our own take over when didn't have sufficient funds to build a functioning Premier League squad?

[Pragmatist]

Re the OP. How would we fund our own take over when didn't have sufficient funds to build a functioning Premier League squad?

That’s the point.  We shouldn’t “fund our own takeover”.  Buyer should buy shares from seller and pay seller, and the price based on value takes the net assets into account.  Buyer then puts in funding (loans or extra equity) to provide any additional funding.

The sort of deal done by Burnley is extremely high risk - but not risk for the new buyer.  The club is being put at risk.

[GunsOfNavarone]

Re the OP. How would we fund our own take over when didn't have sufficient funds to build a functioning Premier League squad?

That’s the point.  We shouldn’t “fund our own takeover”.  Buyer should buy shares from seller and pay seller, and the price based on value takes the net assets into account.  Buyer then puts in funding (loans or extra equity) to provide any additional funding.

The sort of deal done by Burnley is extremely high risk - but not risk for the new buyer.  The club is being put at risk.

I know what your point was, I was asking how it would come about given we don't have their cash reserves.

[baggiebloke]

Re the OP. How would we fund our own take over when didn't have sufficient funds to build a functioning Premier League squad?

That’s the point.  We shouldn’t “fund our own takeover”.  Buyer should buy shares from seller and pay seller, and the price based on value takes the net assets into account.  Buyer then puts in funding (loans or extra equity) to provide any additional funding.

The sort of deal done by Burnley is extremely high risk - but not risk for the new buyer.  The club is being put at risk.

I know what your point was, I was asking how it would come about given we don't have their cash reserves.

Discard cash, just gear up the assets... ground, training ground, cashflow, goodwill, the melted down bronze of Bomber's statue, etc...


Shudder at the thought.

[MGalea]

It's possible to gear up the assets etc... but we're a lot less tempting for this sort of deal without the cash - so hopefully that keeps this away from us.

Definitely a game of Russian roulette though. Lot's of us said be careful what you wish for back in the days of Peace Out. As the ownership changes hands more often we're more likely to get a dud but on the other hand it can work out....look at Villa for example.... Lerner was loaded but Dr. Tony nearly had them bankrupt now the fishy twats have got tonnes of dosh.

[baggiebloke]

It's possible to gear up the assets etc... but we're a lot less tempting for this sort of deal without the cash - so hopefully that keeps this away from us.

Definitely a game of Russian roulette though. Lot's of us said be careful what you wish for back in the days of Peace Out. As the ownership changes hands more often we're more likely to get a dud but on the other hand it can work out....look at Villa for example.... Lerner was loaded but Dr. Tony nearly had them bankrupt now the fishy twats have got tonnes of dosh.

and yet still no class.