Report this comment
  • "
    sutherlandclarets wrote:
    If you look at what has happened since the clubs last visit to the Premiership, with regards to players in and out. We have done very well to have gained promotion once again.
    Players out are mainly strikers, Nugent back to parent club, Fletcher £7 million to Wolves (hope we had a sell on clause) Mears & Eagles to Bolton £3.5 million, Rodriguez £7 million to Southampton and Austin to QPR £4 million, plus almost all of the team which played in the premiership gone. All that on top of the parachute payments and the club still made a loss. I think the club has done very well, to keep their heads above water in these scary financial times.
    So a big pat on the back to them well done and lets enjoy this next roller coaster ride in the Premiership, with our new and very up and coming Manager Sean Dyche
    Good post, there is no doubt that Burnley have managed their financial situation much better than many other clubs, Rovers included, but your key phrase is;

    "All that on top of the parachute payments and the club still made a loss."

    To simply survive in the PL promoted clubs have to invest heavily just to get their foot on the 4th rung from the bottom, the three relegated clubs face inevitable financial meltdown, if you are relegated next season it won't be the same as last time because FFP wasn't in place then; it was easier to pace yourself, and you will find that while you well be a much richer (financially) club for the experience, the sentence I quoted will have much more bite next time around.

    That for small clubs like ours is extremely scary because FFP only has one eventual outcome, it will make the big city clubs richer and pave the way for a break away European Super League, I suspect in the non too distant future.

    Something along the lines of how European Rugby Union is currently being structured.

    However, these for you are heady days indeed and despite all the rivalry and rhetoric I honestly do hope you fans have a great time in the PL next season."
  • This field is mandatory
  • This field is mandatory
  • Please note we will not accept reports with HTML tags or URLs in them.

  • Enter the above word in the box below

Clarets co-chairman stunned by Championship debts

John Banaszkiewicz (left) celebrates Burnley’s promotion with Brendan Flood, Sean Dyche, Barry Kilby and Mike Garlick

John Banaszkiewicz (left) celebrates Burnley’s promotion with Brendan Flood, Sean Dyche, Barry Kilby and Mike Garlick

First published in Sport This Is Lancashire: Photograph of the Author by , Burnley FC reporter

CLARETS co-chairman John Banaszkiewicz described the Championship’s £1billion debt as “scary”, but added that it served to highlight the value of Burnley’s promotion even more.

A club-by-club guide to Championship finances from 2012/13 figures, printed in The Guardian, has revealed the mounting costs of trying to be competitive, with combined debts of the 24 clubs reaching a 10-figure sum.

Burnley, who posted a pre-tax loss of £7.6m for and net debt of £12.2m for that year, were mid-table in the rankings with a turnover of £15.3million and wage bill of £15.4m – marking them 13th highest in the league in both categories just 12 months before a Premier League place was secured.

Bolton Wanderers topped the spending scale with a turnover of £35m and wage bill of £37.4m both highest in the division, accounting for a staggering pre-tax loss of £50.6m and net debt of £163.8m.

Leicester City, who went up as champions last season, spent significantly more than Burnley on wages (£26.1m), with a turnover of £19.6m.

Ambitious Brighton, who this year missed out on promotion after losing their play-off semi-final with Derby County, had a turnover of £23.4m, with a 90 per cent proportion of that.

In comparison to their peers, Banaszkiewicz believes Burnley’s promotion has taken on even greater significance given their lack of financial clout.

Under Sean Dyche, Burnley have spent just £450,000 up front on player trading, with Ashley Barnes bought from Brighton in January.

“It makes it an even bigger achievement,” said Banaszkiewicz.

“The figures are a year old but it’s quite a good summary and puts things into perspective.

“A one billion pound debt is scary. For us it shows the structure of the club. If we’ve not got lots of money we’re not going to spend it.

“But it also highlights the value of promotion.”

Burnley’s losses have ultimately been offset by the sales of Jay Rodriguez, to Southampton for £7m and Charlie Austin to QPR for £4m in subsequent summers.

After making a concerted attempt to fall in line with the Financial Fair Play ruling they were on course to break even this financial year, even before celebrating promotion.

FFP rules state that Championship clubs can make a maximum loss of £3m for the current 2013-14 campaign. That figure rises to £8m if a club’s owner is willing to convert the additional £5m into shares in the club.

Anything above £3m or £8m will result in a transfer embargo which would come into force on January 1, 2015. Championship clubs that fail to comply with FFP but are promoted to the Premier League this season will be required to pay a ‘Fair Play Tax’ penalty, which scales from one per cent on the first £100,000 overspent to 100 per cent on anything above £10m.

Comments (26)

Please log in to enable comment sorting

Comments are closed on this article.

Send us your news, pictures and videos

Most read stories

Local Info

Enter your postcode, town or place name

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree