Burnley points deduction concern after £81m reveal
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Burnley points deduction concern after £81m reveal

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Burnley’s participation in the Premier League is “essential” in order to manage their debt levels and prevent a possible deduction of points.

According to financial analyst Kieran Maguire, who spoke with Football Insider exclusively, there have been “concerns” about Turf Moor’s debt levels ever 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.

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.

In the event that they are demoted, they will get parachute payments, but only for a two-year period.

“Their £60 million in player acquisitions in 2022–2023 were also, by Championship standards, very significant.”

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