Burnley FC could face early loan repayment if relegated

Premier League side Burnley could be forced to pay back a loan early if they are relegated this season.

The prospect of early repayment is linked to a loan that financed the Lancashire club’s takeover last year, according to a report by a national newspaper.

It claims the terms of the loan from MSD UK Holdings mean that relegation would trigger early repayment of a £60m loan.

At the moment it is understood that the club is making payments on an interest-only basis, believed to be approximately nine per cent until 2026, when the loan is due.

Current owners, ALK Capital, took out the loan last January as part of the £170m acquisition of the club.

The balance of the acquisition price involved equity investment and the club’s bank balance.

Reports say the club is liaising with MSD and the terms could be renegotiated.

ALK Capital says it will fund transfer deals for the club in the current January transfer window.

Burnley is currently bottom of the Premier League, four points from safety, but with games in hand on its nearest rivals.

Burnley FC has been contacted for comment.