Burnley face similar relegation danger as Everton amid Wednesday financial news
Burnley are battling to avoid a similarly bleak financial fate to Everton in the event they are relegated, according to a report from The Athletic.
Frank Lampard’s side are battling back from the brink amid a widely reported situation that includes hundreds of millions in losses across recent seasons, cutting ties with key sponsor Alisher Usmanov over his links to Vladimir Putin, and the development of a new £500million stadium.
But the Clarets, who have shot back into contention for Premier League safety following the sacking of Sean Dyche, also face a major financial issue if they do go down.
Relegation would trigger the repayment of the bulk of the £65million loan ALK Capital took out for a leveraged buyout of the club 2020 to be brought forward from 2025.
The Athletic’s report says: “Burnley face a significant loan repayment over the next year if they are relegated this season.
“As it stands, Burnley only have to pay interest on the loan.
“Dropping out of the Premier League would move the repayment schedule forward — with a significant proportion of the capital loan value required shortly after the end of the football season.
“That would be a significant blow to the club’s finances. If Burnley are relegated TV revenue, which makes up a huge part of their revenue, would decrease significantly and their cash in the bank has already decreased from £80 million to £50 million.
“If Burnley remain “in a continuing relegation scenario”, according to the accounts, they would have to pay a further “significant” section of the balance.”
Although Clarets chairman Alan Pace has insisted plans are in place for if they do go down, the club apparently declined to comment on the latest report when approached by The Athletic.
Drastic times
The news that the relegation rivals would be in line for such financial concerns may explain why they dispensed with long-time manager Dyche.
The now-former boss had gone down to the Championship once before and brought them straight back up.
But the situation at Turf Moor was sufficiently dicey this time round that such a luxury could not easily be afforded.
It is the revival from the Clarets that has pushed the Toffees further into the mire, despite the crucial win over Chelsea on Sunday (1 May).
A 3-2 loss to Dyche in his penultimate game (6 Aprill) was followed by a 1-0 win over Manchester United on the same weekend Burnley lost to bottom side Norwich.
The subsequent sacking has sparked a major upturn in their fortunes, to the tune of three straight wins, and has left Lampard’s side in the relegation zone.
A win from the game in hand held over both Burnley and Leeds would take the club above both rivals, but where the Turf Moor side previously looked to be adrift they have pulled themselves back into a three-way battle.
Everton, club and fans alike, are fighting like their existence depends on it, and while it was not quite so catastrophic as that, the issues that would be brought on by relegation might make the exclusion from the top flight an extended one.
It now looks like the same motivation is what is driving the resurgent Burnley side who are currently in the driving seat.
That leaves Jesse Marsch’s Leeds who appear not to have the same threats coming from the balance books but did remove their own totemic manager in Marcelo Bielsa.
If nothing else, this season’s relegation battle shows the folly of clubs being loaded with debt or operating at huge losses, with two of the drop candidates scrambling to avoid a nightmare.
In other Everton news, one Sky Sports pundit has dismissed any Chelsea firework-related excuse claims while hailing “excellent” Toffees players.
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