BURNLEY claim they have 'ridden their financial storm' in the wake of a new football report that confirms they are among the paupers of the Championship.

However, chief executive Dave Edmundson today warned that despite showing the shoots of recovery, a cautious approach was still needed to stabilise the club for future generations.

Accountants Deloitte and Touche's Annual Review of Football Finance shows that in the 2003/04 season, the latest figures to be analysed, the Clarets were ranked 35th out of 44 clubs in the Premiership and Championship in terms of their wage bill.

Burnley suffered a whopping 29 per cent annual reduction in salaries from £7.6m to £5.4m during Stan Ternent's final season in charge at Turf Moor, when the average wage bill in the Championship was £8.66m.

That downward trend continued when Steve Cotterill took charge exactly one year ago. And with the Clarets boss once more limited to free transfers this summer, the club must again look to punch above its weight in a league where their average attendance could be among the lowest.

Edmundson said: "The report for the 2003/04 season shows the struggle we faced. We were well below that £5.4million figure last season and we are still down in 18th or 19th place and that clearly shows how we have massively punched above our weight with thin resources.

"This season, although there is an increase, it is still a budget that is in the bottom six in the Championship. We acknowledge the resources are nowhere near what the manager would like and we may still be looking to sign free transfers, but it is a testament to him that we are getting quality players in.

"What we did last year was nothing short of amazing, but we need the supporters to keep coming and back us."

Edmundson first highlighted Burnley's perilous financial position in February 2004, when a slump in season ticket sales contributed to a black hole that forced the club to the brink of administration.

A frantic fund-raising effort helped to plug the gap before a dramatic reigning in of the club's finances finally helped to steady the ship. Club debts were then wiped out for good last season by various cash injections, including chairman Barry Kilby's £3m buy-out of Turf Moor and Gawthorpe, the transfer fees received for Robbie Blake and Richard Chaplow and two cup runs.

Edmundson added: "I think the storm has now abated and one of the greatest performances of last season, off the field, was getting 8,500 season ticket holders.

"That was a phenomenal achievement when there was no optimism. We had just flirted with relegation two years running, we were threatened with financial disaster, we changed our manager and he had no team in place for the start of the season.

"We start from a much healthier base this summer thanks to the resources employed by the new manager, who did a magnificent job last season and the future is now as bright as it has been for some time."