Skip to main content

Burnley's finances

This week Burnley chairman Alan Pace released a statement in which he dismissed concerns about the club’s financial situation and sought to reassure supporters after reports that payments owed to former directors had been delayed.   The concerning reports had arisen during a transfer window in which Burnley have so far failed to sign any new players and sold first-choice striker Chris Wood to relegation rivals Newcastle United for £25 million.

There have always been question marks around ALK Capital’s purchase of Burnley and how it was financed. The owners, who took over in December 2020, bought an 84 per cent stake in the club for in excess of £150 million. They are understood to have taken out a significant loan from MSD Holdings and used a large portion of the club’s cash reserves to help finance the move, while sources suggested they invested around £15 million of their own money.

Pace’s statement was welcomed by some supporters, as he went public to offer clarity and it is difficult to question the work Pace has done on the field, given the positive summer window and the work in securing manager Sean Dyche to a new contract.

They would take a significant financial hit if the worst-case scenario of relegation occurs. It would mean a loss of TV money, which, from the last set of accounts published, makes up over 85 per cent of the club’s revenue.

Parachute payments should help steady the blow as will potential wage cuts which would help lower the current £94 million wage bill. Player sales would also contribute to filling the financial hole created but a quick promotion back to the top flight would be imperative.


Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day ...
Post a Comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more