The D M reads

[Balanbam00]

Burnley's £115m relegation hit! Clarets will have to repay huge £65m loan IMMEDIATELY if they drop out of the Premier League before 2026 - as well as losing £50m in their first Championship season from lost TV cash and prize money.

Burnley are in danger of being relegated from the Premier League this season
If that was to happen, the Clarets would have to pay £65million due to an early repayment clause in a loan taken out by the club's new owners
The loan is interest only until December 2025, with repayments at eight per cent.

Burnley have confirmed they face a £65million penalty if they are relegated from the Premier League.

The bill is due to an early repayment clause in a loan taken out by the club's new owners, revealed by Sportsmail in January.

The club's 2020-21 accounts confirm the existence of the clause, which state the balance of the £65m loan will be due if Burnley are relegated before 2026.

The loan is interest only until December 2025, with repayments at eight per cent, but relegation will bring forward the repayment date. The club would also lose £50m in TV and prize money in their first season after relegation, with more losses to follow, leading to a fire sale of players.

'The group's reserves are sufficient to enable a significant proportion of the balance to be settled by way of dividends if required,' the accounts state.

They also confirm there would be a major reduction in wages upon relegation, as well as money from the sale of players 'as is common for many clubs relegated from the Premier League'.

Burnley have £50m in cash reserves - down from £80m last year, due to the impact of the pandemic. Over the year to July 2021, the club's turnover fell from £134m to £115m, which the club said was owing to the 'lack of fan attendance'.


The comments.
That would be the end of the club. How and why these clubs get themselves into a financial mess is beyond me. Live within one's means and all will be well.

The crazy world of football finances. Clubs mortgaging themselves just to stay in the premiership

Dean in Melbourne
As a Blackburn fan I absolutely can't stand Burnley. That being said, who the hell allows this incompetence to happen? Whether it be the powers that the up higher who gave the green light for the sale of the club or current Burnley owners, what an absolute amateurish turn of events this is

SG King Pup, Singapore,
But Burnley ain't getting relegated because Everton is going down. False alarm, folks.

D.ck move getting rid of Dyche

What about the parachute payment?

If they go down , I sense a fire sale coming to Burnley !


...all from the D M .

[sinkov]

Nothing new there, this is all entirely predictable and was predicted, it's why I've been saying for a while now, Admin and D1 here we come, the only question is which arrives first.

[Swissclaret]

Nothing new there, this is all entirely predictable and was predicted, it's why I've been saying for a while now, Admin and D1 here we come, the only question is which arrives first.

We all hope that you are wrong, sinkov. We have to hope that we stay up. One thought on administration - there is an old saying that if you owe the bank £1’000, the bank is your problem. If you owe the bank £65 million, you are the bank’s problem.

In the worse case scenario, I think the loan repayment schedule will be renegotiated. It is in no-one’s interest to see the club go bankrupt, least of all the bank that stands to loose £65 million.

In all situations, any agreement is a contract at law. The parties to that contract can always renegotiate the terms. That is normal commercial practice.

The biggest danger is if money is owed to HMRC. They could not care less and will force anyone into bankruptcy.

[sinkov]

We have to hope that we stay up.

We can stay up Swiss, but that just delays the inevitable, the debt won't go away, it will sooner or later have to be repaid. I cannot see a way out of this, we're in deep doodah right up to our necks.

[kritichris]

We can stay up Swiss, but that just delays the inevitable, the debt won't go away, it will sooner or later have to be repaid. I cannot see a way out of this, we're in deep doodah right up to our necks.

But if we do stay up then this time next year we may only be in mid depth doodah right up to our cojones.

[sinkov]

But if we do stay up then this time next year we may only be in mid depth doodah right up to our cojones.

If we stay up Chris, I cannot see the doodah having subsided, it may still be lapping round our necks in 12 months time, or we may be submerged by it. If we go down, we will be submerged by it quite rapidly I would think. Either way, we're fecked.

For the optimists, could anyone hazard a guess as to how much money will be available to the new manager in summer, whichever division we're in ? Somewhere between zero and SFA would be my guess.

[The Bedlington Terrier]

I see no reason to panic Mainwaring. We have one lucky Mormon running the show, which is always better than a taste of bitter Garlick.

[kritichris]

He should have secured it earlier and kept us in.

[Supersub6]

Just something else for fans to worry about, if you are that way inclined.
Why? You have no more control over what happens ay Burnley FC than you have over whether Putin will go nuclear or not.
Just no point in worrying about 'what might be' ---just get on and live your life and hope that you don't become another Covid statistic by getting run over and killed by a bus. Come to think about it, there is no need to worry about that either. Be happy every morning when you waken up -----the day that you don't waken up ---it won't be your problem!

[kritichris]

We need BT to stop predicting Burnley wins, he never gets it right. I'm OK with relegation as long as we don't get Neville or Rooney, we need someone with a better win rate, 40% +.