The owners of Premier League club Burnley, Velocity Sport Limited, owned by investor Alan Pace, have reached an agreement to purchase a majority stake in Espanyol for €130 million.

“With this deal, RCD Espanyol and Burnley will be part of the same investment group, which expands its interests by owning one club in LaLiga and another in the Premier League – although each club will remain independent,” Espanyol said in a statement.

The Chinese group RASTAR took control of Espanyol in 2015, and since then, the Catalan club has suffered two relegations and two promotions to the top flight, where it reached seventh place in the 2018-2019 season.

“The RASTER group is not dissociating itself from RCD Espanyol, but rather its shares will be part of the new investment vehicle that will have stakes in both clubs,” the Catalan club explained.

Of the €130 million, €65 million will be paid in cash to the RASTAR group and the remaining €65 million in shares of Velocity Sport Limited. The Chinese conglomerate led by Chen Yansheng will own 16.45% of the investment vehicle and may sell its stake within two to five years to Velocity Sport Limited and ALK Capital for €81 million.

Espanyol finished 14th in La Liga last season, just two points ahead of Leganes, who finished 18th—the final relegation spot.