Burnley Football Club has recorded a pre-tax loss of just over £4m. for the last financial year.
Relegation from the Premier League to the Championship saw a massive drop in turnover from £45.37m. to £27.37m. But in the same period the club’s wage bill dropped from £22.37m. to £19.39m. – a saving of just £3m.
The club’s annual accounts for the year ended June 30th, 2011, make for grim reading with a stark warning that the club has a lot of work to do to ensure that costs match revenue, especially if the team does not regain Premiership football in the next three years.
Operating loss was £3.6m.with interest payments adding £907,000. A profit of just over £500,000 was made in the transfer market.
The directors’ report reveals that staff costs have doubled since the 2007/8 season.
It states that Burnley Football Club has recorded operating losses of more than £12m. over the last five years despite the £10.78m. Premier League season profit.
During that time around £10m. profit was made in the transfer market.
Match income including television rights accounted for more than £23.21m. of the £27.3m. turnover with other drops in commercial and shop sales.
However, catering. sales rose by almost £400,000.
Playing, managerial and training staff only dropped slightly from 95 to 93. Total staffing at the club dropped from 169 to 154.