Burnley Express reader's letter: 'We worry that our club could face extinction if the club struggles to meet its financial obligations'
I am writing this open letter to the owners of Burnley Football Club as a lifelong supporter of the team and in the hope that it stimulates a response which will go a long way to re-assuring myself and other supporters, many of whom have supported the team all their life, that their team is in safe hands.
We worry, and with good cause given past experience, that our club could face extinction if the club struggles to meet its financial obligations, which are obviously inextricably linked to its success on the football field.
I wanted to raise the following fairly simple questions in the hope you (the chairman and the board) will provide open and honest answers and in turn these will convince the supporters to not only to continue to stand behind the football club as loyal supporters but also yourselves as trusted owners.
You clearly do not have to answer these questions but if you do it will go a long way to restoring faith and confidence that you are genuine in your desire to look after our club and act in its (and the supporters’) best interests. If you are not willing to respond or are vague then you really cannot blame the fans for a lack of trust and filling the void with their own views on the situation. In the spirit of openess I have copied the Burnley Express as a representative and voice piece of our local community of which the football club is a vital ingredient.
Firstly – the most recent transfer window turned out ok with some, what look to be quality late additions, but with one disappointment – the departure of Zian Flemming. As I write this I have learned we are signing Jamie Vardy for a season which at least is something and he certainly has the experience. But why do we always seem to go to the wire, and beyond, on transfer window signings and in many supporters eyes essential replacements ?
Secondly – there is a lot of debt in the club, presumably secured by the club’s assets. Servicing debt, especially short term debt, is expensive – are you comfortable that this can be continued and what would we have to achieve on the field of play for this to continue to be financially viable ?
Thirdly – do you have a “what if plan” ie what if the results on the field of play do not match the assumptions in your financial plans? Can you give assurances that you will not simply abandon the club with its debts - as I assume you have limited your combined personal exposure to any financial obligations to clear outstanding debts tied to the football club. Put simply would you let the Ccub fall into administration ?
What actions are you taking to secure the long term future and (survival) of the club ? Do you have plans to pay down the significant debt so that future survival (and hopefully prosperity) is more secure ?
What are the long term objectives for the club and what are the main strategic actions designed to achieve these ?
The corporate structure, with all the different legal entities tied to the overall football club looks, to be candid, purposely complicated. Would you therefore be prepared to publish the net inflow of and outflow of all funds into and out of the consolidated football club’s corporate entities ? Are we increasing cash or reducing net debt or draining cash in the last 12 months and what are the future year forecasts ? And if we are draining cash where and who are we draining cash to ?
And what are your own personal strategic objectives, for example, do you want to have a long lasting relationship to the club or will you exit if you achieve certain personal financial objectives ? And if the latter what are these objectives ?
Ian Duerden and others