Burnley get PSR boost after £28m reveal
Burnley have received a financial boost as a £28million loss has dropped out of their profit and sustainability (PSR) calculations, sources have told Football Insider.
The Clarets secured an instant return to the Premier League last season after finishing second in the Championship table behind Leeds United.
Burnley have bounced between the top two divisions in recent years after being relegated from the Premier League in two of the past four seasons.
Scott Parker is the man tasked with keeping the Lancashire club in the top flight this time around following a successful first campaign at Turf Moor.
Burnley are the favourites to be relegated again this season due to their lack of financial firepower compared to some of their top-flight rivals.
Although the Clarets are yet to face significant PSR issues, various Premier League clubs have been close to the spending limit in their efforts to compete over the past few years.
Burnley recorded a £28million loss after tax in their 2022-23 accounts – their biggest financial loss in recent years.
However, that heavy loss dropped out of their three-year PSR calculations on 1 August after their latest financial year ended on 31 July.
Burnley completed James Trafford sale after £20m reveal
Burnley are in a unique PSR position compared to the majority of their fellow Premier League clubs.
Under the PSR rules, top-flight sides are permitted to lose £105million over a rolling three-year period if they have recieved equity funding in recent years.
The allowance drops from £35million a season to £13million in the Championship, meaning the Clarets’ loss limit would have stood at £61million for the latest three-year cycle if it wasn’t for a key detail.
The Athletic reported in June Burnley have received no equity funding in recent years, ensuring their allowable losses limit was just £15million at the end of 2024-25.
The news outlet projected Parker’s side would need to post a £20million profit in the latest accounting year to avoid a spending breach.
That could be a key reason behind why James Trafford was sold to Manchester City in a deal worth up to £31million at the end of last month.
In the year ahead, Burnley will now benefit from their £28million loss dropping out of their PSR calculations as they look to comply with the spending rules.
The Clarets’ latest published accounts for 2023-24 revealed their revenue increased from £65million in 2022-23 to £134million, while their losses after tax fell from £28million to £24million across the same period.
Burnley undertake signing spree after exits
Parker is preparing his side for the start of the new Premier League campaign as they are set to take on Tottenham in their season-opener on Saturday (16 August).
Former captain Josh Brownhill has left Turf Moor alongside key players CJ Egan-Riley and Trafford, but Burnley have brought in several new additions this summer.
The Clarets have signed Kyle Walker, Loum Tchaouna, Axel Tuanzebe, Quilindschy Hartman, Bashir Humphrey, Jaidon Anthony, Marcus Edwards, Zian Flemming, Max Weiss, Jacob Bruun Larsen, Lesley Ugochukwu, Martin Dubravka and Armando Broja.
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