Burnley chairman explains financial situation

Garlick revealed the projected figure in the match programme for Saturday’s 2-0 win at home to Yeovil Town, but, when quizzed, explained the club is on target to break even this year and comply with Financial Fair Play rules.

The sale of Charlie Austin will go towards this season’s financial results, while the buy back of Turf Moor and Gawthorpe, following a bond issue, will be in last season’s figures.

In the last season of parachute payments following relegation from the Premier League in 2010, Garlick accepts next season will be another challenge, but he looked to clarify his programme notes: “The loss is for last season, it’s not where we are now.

“I think it’s important to be straight with the fans and be honest with them and tell them the way it is.

“The truth is, for last season we did lose £8million.

“There is some good news though, because of all the work as a team, myself and John (Banaszkiewicz) and the other directors and the manager have put in during the last seven to eight months, since January 2013, the current season we’re in now, we’re forecasting to actually break even.

“And going forward we will be compliant with the (financial) fairplay rules that come into force.

“So we’re looking at breaking even in this current season.”

The wage bill has been reduced dramatically, and Garlick added: “The loss was £8m but it’s behind us, we’re moving forward, we’re doing the right things. It’s well publicised we’ve cut the wage bill from last season, so it’s lower than what it was.

“We’ve looked at other costs and we’re on track.

“I don’t think there are many clubs in the Championship who can claim they’re breaking even.

“I think 80-85 per cent of the clubs are currently running at a loss.

“That’s not to say in the future we’ll never make a loss again, but if we’re breaking even I think we’re on the right track.

“This season is the last of the parachute payments so we’ve got a bit more work to do in the coming season, looking at other costs. It’s a constant thing that’s always moving.

“I think we’re on the way to keeping the stability that the fans want.

“But at the same time, looking at the team, I think we’re competitive, I think we’ve got a good united squad, we’ve had a reasonable start so hopefully we can keep that going.

And after the sale of Austin, and previous statements that transfer funds are available, Garlick outlined that was still that was still the case: “We’ve made some extra budget available. We haven’t got a lot of extra money but there is some extra budget available and we’re looking to bring in new people. But they’ve got to be the right people to add to what we’ve got.”

Manager Sean Dyche, with the side in third place in the Championship after three games, remains eager to reinforce: “We’ve got a thin squad, a small squad, although a squad that’s knit and they want to do well.

“We know that we need reinforcements and we will do ongoing, and we’re still going regardless of results.

“Win, lose, draw you’re still looking to improve the bigger picture of the club and the only way to do that is build a squad that is capable.

“We’re still active but there are challenges which slow that down.”