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Sound finances at Burnley

The Zurich-based Swiss Ramble reviews the 2019/20 accounts of Burnley FC.

Profit before tax dropped from £5m to break-even, mainly due to COVID impact, including an additional month of expenses. Revenue fell £4m (3%) from £138m to £134m and expenses increased £9m, though profit on player sales rose £8m to £15m. Profit after tax was £0.5m.   Break-even is the fourth best result reported to date in the 2019/20 Premier League

Without COVID, revenue would have been £10.5m higher at £144m, due to £8.5m broadcasting rebate and £2m other lost income.

The Clarets have made profits for four years in a row, aggregating £77m. In fact, they have been profitable each season in the Premier League, including 2010 and 2015. Losses reported in the Championship in 2014 and 2016 were driven by promotion bonuses.

The profit from player sales more than doubled from £7m to £15m, mainly Tom Heaton to Villa and Nakhi Wells to Bristol City. Despite the increase, this was still firmly in the bottom half of the top flight.

£134m revenue is 14th highest in the top flight, though the gap to the Big Six is enormous, as they are more than £200m below Arsenal £343m. Their 10th place in the Premier League highlights how much the club over-performed under manager Sean Dyche.

The wages to turnover ratio increased from 63% to 75%, though this would be 70% based on 12-month wages. If we further adjust for COVID £10.5m revenue iloss, the ratio would fall to 65%. In short, this is one of the better ratios in the Premier League.

Before the takeover Burnley were completely debt-free, having used Premier League cash to repay previous loans. In fact, the club had £81m net funds, which is testament to their sound financial management.


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