Neville's Breakfast
Well-known member
Part of the takeover deal, which cost ALK (the American owners) about £15m because they borrowed £60m secured on Burnley FC 's assets, and they took £50m from the club bank account, is that if they can't pay the remaining £60m or so, the shares go back to the previous owners. Who are still on the board of directors but who allegedly knew nothing about the sacking.
The suggestion is that if we get relegated, ALK will have no source of funds to repay the bank loan and the shareholders loan, not even if they filch all the parachute money and sell all the saleable assets, and so this is short term desperation to save their investment. If we go down, their goose is cooked as well as ours.
Is that first paragraph sourced or is it rumour ? I don’t see why the shares would revert to previous owners. Wouldn’t the club simply go into administration and ALK lose their investment ?