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Pace & Co. took control of BFC using a leveraged buyout.In order to borrow as a business you need a detailed business plan.They then borrowed money on the markets on the basis of the said five year plan.That plan projected the club to becoming an established mid-table PL club by December of 2025.
Their first attempt under VK ended in disaster which meant that further debt would cost more because of the increased risk to investors-hence the club is borrowing at way above market rates.
Now the club owners are staring down the barrel at another failed attempt in the EPL which again means any further borrowing to generate funds to either attempt to rescue the current situation or try for promotion again next season will inevitably cost even more as the risks increase further for investors.
Therefore, I cannot see any substantive imminent changes to the playing staff or management unless we offload some players to raise the funds necessary-which because of the current performance levels will be at best difficult or impossible.Further debt raising from the markets at even higher rates of interest could put the viability of the club into question if things go pear shaped next season and we dont win promotion-assuming we are relegated.This must not be allowed to happen.
Under VK at least we had some viable players to sell and of course the 10m for VK was a bonus.This time around nobody will be writing a check for Cardy`s services and the income from a fire sale of current players will be substantially less than the previous relegation.
Therefore do not expect any drastic changes in the immediate future.ALK are not billionaires and cannot just keep throwing money they dont have at the club.
Their priority now as businessmen will be to try and get a top 5 finish for Espanyol which would be far more lucrative than spending borrowed money to keep BFC in the PL which at the moment looks like a lost cause.
This is my humble opinion as an outsider looking in and without seeing the actual figures but this is the logical conclusion.
Their first attempt under VK ended in disaster which meant that further debt would cost more because of the increased risk to investors-hence the club is borrowing at way above market rates.
Now the club owners are staring down the barrel at another failed attempt in the EPL which again means any further borrowing to generate funds to either attempt to rescue the current situation or try for promotion again next season will inevitably cost even more as the risks increase further for investors.
Therefore, I cannot see any substantive imminent changes to the playing staff or management unless we offload some players to raise the funds necessary-which because of the current performance levels will be at best difficult or impossible.Further debt raising from the markets at even higher rates of interest could put the viability of the club into question if things go pear shaped next season and we dont win promotion-assuming we are relegated.This must not be allowed to happen.
Under VK at least we had some viable players to sell and of course the 10m for VK was a bonus.This time around nobody will be writing a check for Cardy`s services and the income from a fire sale of current players will be substantially less than the previous relegation.
Therefore do not expect any drastic changes in the immediate future.ALK are not billionaires and cannot just keep throwing money they dont have at the club.
Their priority now as businessmen will be to try and get a top 5 finish for Espanyol which would be far more lucrative than spending borrowed money to keep BFC in the PL which at the moment looks like a lost cause.
This is my humble opinion as an outsider looking in and without seeing the actual figures but this is the logical conclusion.
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