Burnley ‘set for £200m takeover from new firm led by former Charlton lawyer Chris Farnell after talks with US-based consortium stalled’
- Burnley are set to receive a £200million takeover bid from a new consortium
- The club were in negotiations with a US-based consortium but talks have stalled
- Ex-Charlton lawyer Chris Farnell has been cleared to launch his bid for the club
- He had a ban on becoming an football director lifted after his involvement with Charlton’s chaotic takeover this summer
Burnley‘s takeover by an American consortium looks to be on the rocks as a rival firm have been cleared to press ahead with a £200m bid for the club, reports claim.
The Premier League outfit looked certain to be purchased by ALK Capital, run by former Real Salt Lake chief Alan Pace, but talks with chairman Mike Garlick and director John Banaszkiewicz have hit a snag, according to the Athletic.
Now sports lawyer Chris Farnell and Egyptian businessman Mohamed Elkashashy are set to push their own bid through, the report adds, after the Farnell successfully overturned a ban on becoming a director at an English football club having been involved in a turbulent takeover at Charlton earlier this year.
Burnley are reportedly bracing for a new £200m takeover bid after talks with a US firm stalled
The new firm, led by sports lawyer Chris Farnell (right), has been cleared to launch their bid after the 50-year-old had his ban on becoming an English football director overturned
Farnell claimed he failed the English Football League’s Owners’ and Directors’ Test (ODT) because of an administrative mix-up, and a tribunal this week agreed he had not tried to mislead the EFL – meaning he has been given the green light to wrap up the takeover.
He was appointed as a lawyer at Charlton this year to advise the club and majority shareholder Tahnoon Nimer amid a boardroom battle, but was asked to end his involvement by owners ESI in August.
The 50-year-old claimed his only intention was to provide the club with legal assistance ‘for a short time’, adding: ‘I was never a director or owner of the football club, nor was I ever intending to be.
Clarets chairman Mike Garlick is looking to sell the club after being hit hard by coronavirus
There are tensions between Dyche (left) and Garlick as Burnley struggled in the market
Farnell and Elkashashy have been in talks to buy Burnley over the last year, but ALK Capital’s negotiations were at a more advanced stage. Sportsmail reported that Garlick, who has a 49.24 per cent stake in the club, has met with Pace, the company’s chief, a number of times but has never been able to strike a deal.
Burnley endured a difficult summer after being hit by financial implications posed by the coronavirus pandemic and brought in just one signing of note – Brighton midfielder Dale Stephens for £1.5million, with manager Sean Dyche left frustrated at the club’s lack of flexibility in the market.
As a result, Garlick has been looking for new owners after admitting that Burnley could lose £50m if the outbreak continues to cripple the country. This year the Claret and Blue posted profits of just £4.3m.