Analysis: New Burnley owners could lead the way for future private equity takeovers – or effectively scare everyone off

28 January 2021

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Photo: PA Images ALK Capitals Alan Pace, the new majority shareholder and chairman of Burnley FC.

The Burnley takeover looks fragile. The financial commitment from the new owners seems rather small and problems could occur due to the lack of financial power and secured backing from banks.

At the same time Alan Pace and the ALK team have started a very interesting journey with Burnley FC. They want to turn a small Premier League team into a commercial success on the global scene. That’s a brilliantly ambitious plan – but also a tricky one.

So far Alan Pace and ALK are saying all the right things – but we can’t judge them until we have seen how they react when things go wrong. It is then that they will show everyone whether they have properly understood the kind of asset they have acquired.

One major question is the power of Sean Dyche at Burnley. What is the fit like between Dyche and the new American owners? And not least - what is left at Burnley if Dyche departs? How strong is the infrastructure and the strategy at the club?

Kasper Kronenberg kk@offthepitch.com

If you're busy and reluctant to spend time reading about the issues surrounding the recent takeover in English football - ALK Capital buying the majority of Burnley FC’s shares from Mike Garlick and John Banaszkiewicz - then just cast your eyes over the following sentence:

It looks as if the new Burnley owners are on thin ice financially, and things could go very wrong very quickly, but if they manage to avoid relegation in the next couple of years they may have started a journey to becoming the masterpiece of ownership in modern football.

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