Burnley mortgaged to the hilt

Looks like Burnley have taken a gamble on the hope of staying in the Premiershyte.

https://www.theguardian.com/football/2021/feb/02/burnley-us-takeover-has-left-club-90m-worse-off-and-loaded-with-debt?fbclid=IwAR28_sJTWz_-TQVmGt3baf-3zUJvyduhZpdxdkGLKBiZrR7Tub7XcjQj2Ng

Interesting read, thank you.

Sluffy wrote:Interesting read, thank you.

And to think, if it wasn't for the blessed Owen.....

Leveraged buyouts always carry an increased risk for fans even if the terms appear OK but all this will come down to the detail, staying in the PL and the probity of the new owners.
There is little risk to the buyers and the previous owners have been paid off, but the unusual thing about a football club is that the fans and community have a vested interest in the asset itself which is why it's not the same as borrowing to buy a house or a car.

Fans do not have a vested interest.

They may have a personal interest, an emotional one, a consumer/supplier relationship, or even a shareholding but they have no direct legal or financial interest in the club itself.

Even the ST's much vaunted Asset of Community Value which they obtained on the stadium isn't really worth the paper it is written on and basically only makes the sale of that asset becoming public and delayed for a period of months and doesn't ultimately stop a sale of it.

https://en.wikipedia.org/wiki/Asset_of_community_value

I'm also not sure of your assertion that there is little risk to the buyers of the club (and the article states the former owners have NOT yet been paid off) seems from how I read the article they have taken out a hefty loan at high interest to help fund the sale, a relegation from the PL certainly would not be good news for them if Burnley failed to bounce back again to it anytime soon thereafter.

I do wish Burnley well for the future though.

Sluffy wrote:Fans do not have a vested interest.

They may have a personal interest, an emotional one, a consumer/supplier relationship, or even a shareholding but they have no direct legal or financial interest in the club itself.

Even the ST's much vaunted Asset of Community Value which they obtained on the stadium isn't really worth the paper it is written on and basically only makes the sale of that asset becoming public and delayed for a period of months and doesn't ultimately stop a sale of it.

https://en.wikipedia.org/wiki/Asset_of_community_value

I'm also not sure of your assertion that there is little risk to the buyers of the club (and the article states the former owners have NOT yet been paid off) seems from how I read the article they have taken out a hefty loan at high interest to help fund the sale, a relegation from the PL certainly would not be good news for them if Burnley failed to bounce back again to it anytime soon thereafter.

I do wish Burnley well for the future though.

More about yuman rites than vested interests, Sluffy. Football supporters have yuman rites to their footie club and its the responsibility (silent 't') of somebody else to pay for it (almost silent 't'), innit?