Burnley points deduction: Kieran Maguire is now concerned after £81m reveal
It is “essential” for Burnley to be part of the Premier League to handle their debt levels and avoid a potential points deduction.
That is the view of finance expert Kieran Maguire, who exclusively told Football Insider that there have been “concerns” over the debt levels at Turf Moor since their takeover in 2020.
ALK Capital purchased the club through a leveraged buyout which included the club’s money and a substantial loan from MSD Holdings to complete a £170million deal.
As revealed by Football Insider, Burnley will have to take action to avoid future financial breaches after their 22-23 accounts revealed that their debt has grown to £81million.
They suffered losses of £28million last season but are clear of any immediate PSR breaches due to a profit of £26million in their 2021-22 accounts.
Burnley £81m debt is a concern for future points deductions
Maguire explained that Burnley will have parachute payments to help their finances if they are relegated but they will still face pressure to return to the top flight as quickly as possible.
“I think there has been concern with regards to Burnley since day one of the acquisition by ALK,” Maguire told Football Insider’s Sean Fisher
“There are concerns about the leveraged buyout and how it has effectively dumped a load of debt onto the club.
“It means for Burnley that being a member of the Premier League is more essential than it is desirable.
“They will have the benefit of parachute payments if they are relegated, but they will only get two years worth of it.
“Their player purchases of £60million in 2022-23 were also certainly big-hitting by Championship standard.“
In other news, Burnley board blame ‘poor signings’ for imminent relegation’
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