Burnley owner Alan Pace’s potential takeover at Espanyol is not leaving anyone at the Spanish club excited, with pessimism instead the overriding emotion.
That’s according to La Grada, who cover the situation today in two separate pieces, and about how one part of it is not even legal in Spain.
They explain that the Burnley owner, via ALK Capital, is one of the candidates to take over at Espanyol in a possible sale.
Initially this was met with optimism by the club’s fans, largely because of the growing disillusionment with owner Chen Yansheng. That optimism has now dwindled as they’ve assessed Pace’s track record in charge of Burnley.
Various reports in Spain and England have the deal at different stages. La Grada say there is currently no rush at Espanyol, where an Extraordinary Shareholders’ meeting will take place on July 27th.
The feeling, particularly around Pace, is that there should be caution about getting too excited for now.
La Grada’s second piece covers a conversation on La Grada Rodio, in which journalist Francesc Via discussed the possible takeover by the Burnley owner.
“It’s not smoke. People from Espanyol, important and informed people, recognise that the operation is underway and true,” he said.
“Will it end up materialising? I don’t know, when I don’t know, I don’t say it.”
He then pointed out something that may work against Pace, and that is leveraged buyouts being blocked by Spanish law. He used this process, which involves buying the club by using a significant amount of borrowed money or debt, to buy Burnley in 2020.
This, though, would not be allowed in Spain, meaning he will need another method to get his hands on Espanyol if his interest is serious.
“In Spain, leverage, that is, transferring the purchase price to the club itself, is not legal,” he added.
“If it were to happen here, we would be in a situation similar to that of Dani Sánchez Llibre, when the club assumed the risk and debt of third-party transactions.”
