Burnley finances

SeasideTerrier

Well-known member
Personally, I wanted the Yarkshire scum to get relegated.
However, shit happens and the deal for the purchase of Burnley (ex-directors getting a couple of bob) has come home to them there hills.
 
This is the latest example of an American takeover, reverse the debt into the business, and if all doesn't go well, boom. Amazes me how the FA/EPL/EFL allow financial stability rules to be circumvented in this way.
I said on the other burnley thread that this transference of debt needs to be stopped generally in corporate law, in three or four years time they will get to walk away leaving the club as a shell with absolutely no repurcussions on the owners.
 
Burnley will also inherit Parachute Payments over the next four years which should more than insulate them from debts.
 
Burnley will also inherit Parachute Payments over the next four years which should more than insulate them from debts.
I thought parachute payments had been stopped for one payment? Or hasn’t that come in yet?
 
They're fooked.
Pretty much every decent player will be leaving.
They've got to repay 60 odd million by the beginning of the season.
They'll be a team of free signings next season, can see another relegation on the cards
 
Burnley will also inherit Parachute Payments over the next four years which should more than insulate them from debts.
I think that is a bit of a perverse reading of where they are. Those payments are supposed to be to insulate them from the sudden change in wage/turnover ratio. Not repay debt, and certainly not a debt that arises because the current owner used the club as collateral to raise the loans in the first place. The whole strategy was based upon NOT going down.

Lots of water to flow under the bridge yet. I think they may find next season a bit of a trial.
 
I suppose the question is do they go for it next season in the hope of getting back in the Prem thus saving themselves millions or would that 'bust or boom' cripple them for many seasons after? Either way Sean Dyche must be pissing himself!
 
Burnley will also inherit Parachute Payments over the next four years which should more than insulate them from debts.
A £41 million parachute payment isn’t especially effective insulation against £65mn of debt, especially when the club’s revenue has been 90pc from Premier League TV/media
 
A £41 million parachute payment isn’t especially effective insulation against £65mn of debt, especially when the club’s revenue has been 90pc from Premier League TV/media
I suspect they will get quite a bit of revenue from selling players (potentially around £65m) for the likes of Pope, Tarkowski, McNeil, Cornet & Brownhill.
 
I suspect they will get quite a bit of revenue from selling players (potentially around £65m) for the likes of Pope, Tarkowski, McNeil, Cornet & Brownhill.
No chance they will be able to command fees like that. Tarkowski is out of contract so on a free and those other players are now Championship players which will vastly reduce their worth and that's not even taking into account everyone knowing Burnley are desperate for cash so lower offers will be made.
 
Seems bizarre why the Americans would buy Burnley for that amount of money anyway. Any one of us could have given them more insight about Burnley than they seemingly managed to glean, but I suppose when even my local, very unsuccessful NBA franchise is worth 1.6 billion they have to play out their money ball fantasies somewhere.

As someone whose lived in America for 25 years I feel qualified to say you need to keep them out of the game before they unleash the concept of the "corn dog" upon our humble, northern concourses (and ruin half the teams in Lancashire)
 
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