'Shocking' £8m loss for Burnley FC
11:00am Saturday 17th August 2013 in News
BURNLEY have suffered a 'shocking' £8million loss for the last financial year, it has emerged.
The deficit for 2012-13 is almost double the figure projected for the previous year.
Fans groups labelled the figures 'worrying' and said that money from the Premier League era had been ‘squandered’.
Alan Beecroft, from the Colne Clarets, said: "The Premier League was supposed to set us up for years to come but that money has been squandered."
And Clarets Trust chairman Peter Pike said: "We don't want to be in the same position as the club down the road with Venky’s."
In 2011-12, the Clarets were on course for a loss of £4.4m before the sale of Jay Rodriguez led to a £3.16m profit being posted.
Joint chairman Mr Garlick said the club were continuing to operate with ‘large losses’ and said that more players could follow Charlie Austin out of Turf Moor.
The latest figure comes as a surprise, given that Burnley’s co-chairmen John Banaszkiewicz and Mike Garlick are said to have invested more than £10million into the club over the last three years.
But with Burnley into the last year of Premier League parachute payments, which totalled £48million over four years from 2010, the club’s four-man board is now on the look-out for fresh investment.
“For the 2012-13 season our losses will be around £8m, so obviously we need somehow to bridge that gap,” said joint chairman Mr Garlick.
“Some can be bridged by funding from the board and some by players sales, hence the sale of Charlie Austin.
“During the last three seasons co-chairman John Banaszkiewicz and myself have invested over £10m into the club.
“This is over double any previous investments made by any individual in the club’s history.
“It is worth noting that we would like to attract additional funding at some points.
“The search for suitable new partners of the right calibre is, and has been, ongoing for the last few months, with particular emphasis on the word ‘suitable’.”
Peter Pike, chairman of the Clarets Trust, said he was expecting that the club would post a loss but that the reported figure was ‘extremely high’ and ‘worrying’.
He added: “It does explain why we cannot offer the higher wages of some of the more affluent clubs.
“If there any genuine Burnley people out there who are willing to put money into the club then I would welcome that but we don't want in the same position as the club down the road with Venky’s.”
Clarets superfan Dave Burnley said he was ‘shocked’ at the figures.
He said: “I think it’s unbelievable. I’m shocked at the size of the figures, especially under the circumstances of the last four years, when we’ve come down from the Premier League and had the parachute payments.
“The Premier League should have been worth £100million to the club. Barry Kilby said it should set the club up for the next 10 years.
“Instead we are making a big loss. There seems to be a massive black hole somewhere at the moment. This has always been a frugal club but there has been a period where they have just squandered money, and that is the most upsetting part of it.”
Alan Beecroft, from the Colne Clarets, said: “To lose that sort of money at a club of this size is shocking, it really is.
“The Premier League was supposed to set us up for years to come but that money has been squandered on mediocre players' wages by a succession of managers who have invested it poorly.
“In terms of season tickets we have gone from one of the cheapest clubs to one of the most expensive, but there is no value for money. People aren’t going to pay that sort of money at the moment to watch the club.”
The cost of life outside the Premier League is set to hit home when shareholders receive the annual figures in November this year, a month before the club’s annual general meeting, when the breakdown of the deficit will become clear.
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