Burnley face points deduction risk as new documents published

Following the release of their 2022–23 financial statements, Burnley will need to take steps to prevent such financial lapses in the future, sources have informed Football Insider.

Following their relegation to the Championship, the club’s turnover was halved to £65 million, with an overall loss of £28 million, according to the records released this week.

Burnley face financial crisis after increase in debt

The club’s bank loans have increased to £70 million, according to the documents, bringing its total debt to £81 million, up from £53 million in their 2021–22 accounts.

There is a huge risk of the club going into financial trouble because of their high debt if they are relegated from the Premier League this season.

Repayment of a £65 million loan from MSD Holdings, which was obtained at the club’s acquisition in 2020 and is due by 2027, is currently underway.

Burnley manager Vincent Kompany.
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Due to a £26 million profit in their 2021–22 accounts, Burnley are not immediately in danger of breaking any financial laws; nonetheless, action is now required to help the club avoid future infractions and possible point punishments.

Burnley face threat of relegation from Premier League

With seven matches remaining for them in the Premier League this season, Burnley are sitting in 19th place, six points behind Nottingham Forest in 17th place.

At this stage, relegation for them is looking highly likely and they have to be prepared to face the financial consequences that come with it.

Because of the significant drop in broadcast fees between the divisions, Burnley’s relegation this season is expected to bring about another season of severe losses.

Source link : https://www.caughtoffside.com/2024/04/05/burnley-face-points-deduction/

Author : Ahad Shaukat

Publish date : 2024-04-05 11:40:35

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