It’s complicated, but to quickly summarise Burnley’s financial position; they are not in as perilous a position as people think. The major cause for concern is the club’s footballing strategy.
Given they have debts of around £115m, most of which came because of owners ALK Capital’s leveraged takeover of the club in 2020, there were fears a fire sale of players would again be needed to simply stay afloat next season.
While £200m of new recruits over the past few years failed to even make a fight of it back in the Premier League, off the field, The i Paper has learned that financial restructuring on loans taken out to fund their transfer market failings is under way.
“ALK and Velocity [Sports Partners, the sports investment arm of ALK Capital] are manipulating what they know – finances,” one source says.
“Managing the football side and communication is a very different story.
“There is a certain level of arrogance, audacity in ALK/Velocity believing that they can replicate the operations of Tony Bloom and Matthew Benham [at Brighton and Brentford] when nobody at the club comes from that modelling background and has not been refining their capabilities in the field for the best part of 30 years or more.”
Brighton and Brentford’s Moneyball approach, taking a strong data element to their recruitment approach, before selling their incredible finds for hundreds of millions and still progressing, has reached new heights this season, with qualification for next season’s Champions League, astonishingly, still a possibility for both.
Burnley tried it on their last sojourn in the Premier League under Vincent Kompany – spending money his predecessor Sean Dyche could only dream of – in 2023-24. All it did was saddle the Lancashire side with even more debt, and very few points.
The policy – to build, maintain and develop a core of young, inexperienced players mixed in with some seasoned pros – remains one similar to that of Kompany’s ill-fated top-flight campaign.
“The club appear to be in the early part of this new strategy that unfortunately has seen few positive signs and has left a significant proportion of the fanbase having no faith in the owner, recruitment team, the manager and his coaching team, along with many of the players,” a source adds.
“There remains a need to reduce the size of the squad. Outgoings are expected and if they are fringe players, it could easily be around 10 or more – there are so many injured and out on loan. Plus there are a few who don’t look like they will make the grade
“There should, unlike last time, not be the need to sell more than one or two of the core group.”
ALK completed a takeover of Espanyol earlier this season, a team tipped to challenge for the Champions League places. Instead, the La Liga side are just above the relegation zone.
“There remains a need to reduce the size of the squad,” a source continues.
“Outgoings are expected and if they are fringe players, it could easily be around 10 or more – there are so many injured and out on loan. Plus there are a few who don’t look like they will make the grade
“There should, unlike last time, not be the need to sell more than one or two of the core group.”
To bring in much of the current crop, Burnley took on what are effectively payday loans, adding to worries over finances.
Burnley entered into a £40m factoring agreement with London-based Fasanara Capital in January 2025; this means that a proportion of incoming transfer fee instalments goes to them rather than the club. This factoring loan is thought to close in January 2027.
There has been no refinancing at the club since it borrowed a reported nine-figure sum from American private equity group MGG in January 2024, to pay off £89m in debts and gain some additional funds.
Around 75-80 per cent of the debt, upon release of the club’s last accounts, was scheduled to have been paid off by the close of this financial year, the majority of that last season. The next accounts should confirm this when they are shown at Companies House early next month. The current loans are scheduled to end in 2028.
One potential problem that could put a severe dent in the finances is that midfielder Florentino’s loan move is understood to have an obligation to make the deal permanent at the end of the season, taking the total fee to around £22.5m, just under their club record.
The squad is evidently not good enough for the Premier League. But is it even capable of securing another immediate return to the top flight?
“No team has ever yo-yoed three times consecutively and next year’s Championship will possibly one of the hardest ever to get out of, given who is going down and the possibility of the likes of Southampton, Ipswich, Middlesbrough, Wrexham and Birmingham City alongside the relegated trio,” another source adds.
“Some may be complacent about Burnley’s last four seasons in the Championship each with automatic promotion, earning 93, 93, 101 and 100 points respectively in the process.
“All of that was done with key players signed by Sean Dyche – there are none left now and there is nowhere near the same knowhow or fight in what is there now.”
Some names could leave. Zian Flemming has impressed and scored goals. Former Manchester United midfielder Hannibal Mejbri could attract suitors, as could Maxime Esteve and Jaidon Anthony.
Top earner Kyle Walker is expected to leave, too. However, that is about it in terms of players whom the club would struggle to keep. Another damning indictment on a transfer policy where past mistakes have simply not been addressed.
Read more
- Michael Hincks: Birmingham City and the big ‘what-if’
- Daniel Storey: Stoke City are the most depressing club in English football
Whether Scott Parker stays put remains to be seen, with Steven Gerrard understood to be a potential option should he leave. Whoever is in charge is nonetheless likely to have a more settled squad than many of his relegated predecessors. The jury is still out on whether that is a good or a bad thing.
“I think we are more likely to do a Leicester,” another source says. “The recruitment has been that bad.”
Burnley did not respond to The i Paper’s requests for comment.
