Burnley face points deduction risk as new documents published – sources
Burnley will have to take action to avoid future financial breaches after their 2022-23 accounts were published, sources have told Football Insider.
The club published their accounts this week revealing that their turnover was halved to £65million with an overall loss of £28million following their relegation to the Championship.
Documents also revealed that the club’s bank loans have soared to £70million, resulting in an overall debt level of £81million – up from £53million in their 2021-22 accounts.
There will be concerns at Turf Moor that another relegation could plunge the club into financial trouble due to their growing debt levels.
The Clarets are in the process of repaying a £65million loan from MSD Holdings which was taken out during the takeover of the club in 2020 and is scheduled to be repaid by 2027.
Burnley must take steps to steer clear of £81m crisis
Vincent Kompany’s side are currently 19th in the Premier League table and demotion is on the cards with only seven games remaining this season.
Burnley are not under immediate threat of breaching financial regulations due to a profit of £26million in their 2021-22 accounts but action is now needed to steer the club clear of future breaches and potential points deductions.
Another season of heavy losses is anticipated if Burnley are relegated this season due to the huge decrease in broadcast payments between the divisions.
As reported by The Athletic back in 2022, Burnley are also required to pay “significant proportions” of their bank loans if they are not competing in the Premier League.
In other news, Burnley board blame ‘poor signings’ for imminent relegation’
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