Player sales push Burnley FC into profit
BURNLEY FC overcame a fall in revenues to reverse a £4m loss to a £3.1m profit in the year to the end of June on the back of player trading.
The Championship club said a fall in the ‘parachute payments’ it receives from the Premier League was behind the reduction on turnover in the year to the end of June from, £27.3m to £23m.
A further reduction is expected this financial year, and will represent the “major challenge to be addressed” in the next 12 months, joint chairmen
Mike Garlick and John Banaszkiewicz said.
The sale to newly-promoted Southampton of striker Jay Rodriguez allowed the clubs to make a transfer profit of £8.5m and post a pr-tex profit of £3.1m.
The joint chairmen, who succeeded long-serving Barry Kilby this year, said: “This player trading remains a cornerstone of how the club balances it books.
“Despite recording an operating loss for the year, the transfer fee we received for Jay Rodriguez meant we were able to convert this loss for the year into a profit and provide the basis for supporting ourselves in 2012/13.
“Looking forward, the reduction in our income in 2012/13 and 2013/14, now that the initial Premier League parachute payment period has ended, and the introduction of the Football League Financial Fair Play Rules mean that we need to continue to plan carefully for the future and act accordingly, to ensure that we operate within the rule and the income we generate.”