The Swiss Ramble applies his usual forensic analysis to the accounts of Burnley. Much more in depth analysis is available on his Substack page.
Life has certainly been a roller coaster for Clarets fans
since Alan Pace took over the club in December 2020, when his company ALK
Capital purchased an 84% majority shareholding.
This led to a change in approach for Burnley, as the new
owners made the acquisition via a leveraged buy-out, putting in very little of
their own money, instead placing debt on the club for the first time in years,
while also making use of the club’s own cash reserves.
So, following the arrival of the new owners, Burnley’s debt
shot up, rising to a high of £142m in 2025.
Incredibly, looking at external debt, this was the fourth highest in
England, only behind two clubs that have heavily invested in a new stadium
(Tottenham £852m and Everton £469m) plus Manchester United £637m, whose
leveraged buy-out by the Glazers might have acted as the template for Burnley’s
owners.
As a result, the interest burden on the club has
significantly increased. Burnley paid no interest in the years before the
takeover, but this climbed to £14m in 2024/25, which was the fifth largest in
all of England.
Burnley had brought a case against Everton after the Toffees
breached Profitability and Sustainability Rules (PSR) for that season, arguing
that their relegation was a result of Everton’s non-compliance, which had given
their rivals a sporting advantage. This
decision has been appealed by Everton, so the award could potentially be
reduced or even cancelled, but, as it stands, Burnley can include this payment,
thus boosting their bottom line. The
appeal is expected to be heard in January.
Burnley have now lost money four seasons in a row, which is
a major change from the club’s traditional sustainable model.
Like many football clubs, Burnley have ramped up their
player trading, generating £176m profit from this activity in the last five
years, which is around three times as much as the £59m they made in the
preceding 5-year period.
Broadcasting was by far the most important revenue stream,
accounting for 82% of total revenue with commercial and match day only
contributing 11% and 7% respectively. TV
money is incredibly important to Burnley, given their relatively low gate
receipts and commercial income, so broadcasting contributed a striking 82% of
their total revenue. This was the highest of any club in the Premier League,
though Bournemouth and Brentford were not too far behind with 81% apiece
Burnley’s tough financial challenge in the Premier League
was amply illustrated by their £145m revenue being the lowest in the division,
a fair way below the likes of Southampton £158m, Wolves £172m and Brentford
£173m. To further place this into
perspective, it was at least £350m below each of the Big Six. In fact, the top
four clubs generated nearly five times as much: Liverpool £703m, Manchester
City £694m, Arsenal £690m and Manchester United £678m.
Of course, Burnley’s revenue will significantly reduce this
season after relegation to the Championship. The last time that this occurred,
it fell 46% (£62m) from £134m to £72m, hence the need for player sales. Burnley will benefit from a parachute
payment after relegation, which will be worth around £50m.
Burnley’s average attendance increased by 6% in the Premier
League, climbing from 19,876 to 21,005, though this was slightly lower than the
21,153 they achieved two seasons earlier.
Wages
Following promotion, Burnley’s wage bill wages increased by
£41m (50%) from £82m to £123m, a big new club record. In fact, the underlying increase was even
higher, as the previous season included a significant promotion bonus,
estimated as £18m, while there was no survival bonus in the Premier League. in fact, wages were a third higher than the
£93m in the previous (brief) stay in the Premier League in 2023/24, so these
have significantly grown. Despite the
steep growth, Burnley’s £123m wage bill was almost certainly the lowest in the
Premier League in 2025/26. Burnley’s
85% was one of the worst wages to turnover ratios in the Premier League, only
better than Fulham 85%, Bournemouth 87% and Wolves 95%.
Burnley’s other expenses also significantly increased by
£8.8m (29%) from £30.4m to £39.2m, yet another club high. Like all other clubs, they were adversely
impacted by increasing inflation on services and utilities, while running costs
in the Premier League are almost always higher, but the magnitude of the growth
is a little surprising, especially after the fall in the management fee.
Burnley’s £356m gross spend in the last five seasons was
more than twice as much as the £168m outlay in the preceding 5-year period.
Many fans believe that this was because the previous owners had dramatically
slowed down their spending, effectively creating a cash mountain to attract new
investors.
Burnley’s “real” transfer spend (post accounts) of
£122m really should have given them a fighting chance of staying up, as only
four clubs have spent more in their first season after promotion to the Premier
League, namely Sunderland, Nottingham Forest, Aston Villa and Bournemouth – all
of whom are still in the top flight.
Debt
Burnley’s £86m external debt will still be one of the
highest in the Championship. The vast
majority of the debt is short-term in nature with the accounts noting that £24m
will expire in January 2027 and £22m in August 2027. The timing of the January refinancing in
particular is not ideal, as this is when the Everton compensation appeal will
be heard, which could potentially spook any lender, given that the £39m award
is at risk.
The debt has been taken out at fairly horrific interest
rates, as the bank loans are between 7.25% and 12%, while the factored debts
are even higher at 12.75%, which led to Burnley’s £12m interest payment being
the fourth highest in the Premier League.
In October 2025 Burnley’s owners acquired Spanish club
Espanyol in a deal worth €130m, made up of €65m cash and €65m of shares. Burnley supporters will surely be concerned
that this acquisition might mean less focus on their club, while the owners’
capital now has to be shared with Espanyol.
Comparing the financial situation for the five years before
and after the takeover, the club has swung from profits to losses. Revenue is
lower and wages are higher, leading to significant operating losses, only
partially offset by higher profits from player sales.
Given the limited financial resources, Burnley’s business
model has often relied on the club bouncing back to the Premier League, but
there is no guarantee that this will continue, even with the substantial
competitive advantage provided by parachute payments. In fact, it currently looks more likely that
Burnley might emulate Leicester City and Luton Town, who both suffered an
immediate relegation to League One.
Burnley’s challenge in the Championship has become more
difficult, as this division is now one of the most competitive on the planet,
featuring recent arrivals from the top flight in the shape of West Ham, Wolves
and Southampton, as well as highly ambitious clubs like Birmingham City and
Wrexham.
the appeal on the compensation award goes against Burnley,
that could really set the cat among the pigeons.
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