Things can only get better for Burnley
Newly-promoted Burnley FC face a daunting start to their Premiership campaign, hosting treble-winning Manchester City this Friday (August 11).
But prospects at the Lancashire club are somewhat easier than when they dropped out of the league two seasons ago.
As they hovered above the trap door, dire warnings emerged of early payback clauses on a £65m loan from MSD UK Holdings, as part of US-based ALK Capital’s December 2020 takeover.
The Clarets subsequently did succumb to relegation, but, having amassed a striking 101 points in their brief Championship sojourn under new manager Vincent Kompany, the picture on and off the field is combining to provide confidence going forward.
The last annual financial figures for the club, to July 31, 2022, covered the relegation season.
Turnover rose by £8.3m, or 7.2%, to £123m, aided by resumed ticket sales and hospitality revenues as fans returned to grounds post-COVID-19.
Burnley FC
The club reported its eighth consecutive year of positive operating profit, excluding player trading, generating £11.2m for the year.
Burnley delivered a £36m pre-tax profit, compared with a £3m loss the previous year, but this was mainly due to player sales which generated £54.7m, compared with just £5m the previous season, in anticipation of relegation, lower turnover, and the ensuing cost cuts.
Around £20m of this was used to pay down debt. And the club reported net assets of £104.9m, among the highest levels in its history.
Parachute payments from the Premier League, following relegation, will have eased fiscal pressures somewhat, aided immeasurably by immediate promotion back to the ‘land of milk and honey’ – 10 points ahead of their nearest rivals.
Chairman, Alan Pace, maintained that his much criticised ALK Capital takeover, was sustainable from day one and that plans were in place for relegation.
He will feel justification following a successful season that saw Burnley swagger their way back to the top table under the guidance of former Manchester City captain Kompany.
And, in May this year, the club announced further US investment in the business when three-time NFL Defensive Player of the Year, JJ Watt, together with his wife Kealia Watt, a former USWNT international, confirmed their support for the Clarets.
Pace also aims to widen the appeal of the club, both geographically, and locally, including a drive to appeal to a more diverse fan base within its Lancashire stamping ground.
The board has been further bolstered by the appointment of Vlad Torgovnik as a new director last week.
Alan Pace, courtesy Burnley FC
With more than 30 years of experience in technology, he has previously held various CIO positions within both investment and consumer banking and in 2006 was recognised as the Capital Markets CIO of the Year by Bankers Magazine. Alan Pace said: “His extensive knowledge, expertise and valuable experience will really help us drive our vision forward.”
In June the King Casino Bonus supercomputer delivered its verdict on the final 2023-24 season placings, and predicted that Burnley will finish its first season back in the Premier League in 17th spot, one place above a relegation berth.
Asked by BBC Sport if a 17th-place finish would be classed as success, Burnley’s strategy director Hamish Wilson said: “It depends who you speak to.
“If you talk to Vinny (Kompany) then he will say ‘absolutely not’, he has a winner’s mentality, but for us in our long-term ambition, one of the key goals is to stay in the Premier League.”
