Burnley FC post losses of £29m in financial accounts despite doubling turnover from Premier League riches
Burnley Football Club have posted pre-tax losses of almost £29m in their latest financial accounts.
The accounts cover the 12 months leading up to July 31, 2024, the period in which Burnley were relegated from the Premier League under Vincent Kompany.
Turnover increased from £64.9m to £133.6m due to the club competing in the top flight, as television rights jumped significantly from £47.8m to £110m.
The Clarets generated an operating profit, excluding player trading, of £10.1m, driven by the increase in turnover.
The accounts state that, in anticipation of lower turnover this season due to relegation, the club sold several players “generating a profit on disposal of £15.1m in this accounting period”.
The club recorded a total pre-tax loss of £28.9m for the financial year, having recorded losses of £35.1m in 2023. The losses are primarily driven by an increase in player amortisation of £20.5m to £42.6m.
The club’s wage bill also rose from £57.5m to £93.4m.
“As is common with many professional football clubs, the principal risk to the group is the possibility of the football club's relegation from the league in which it competes,” the accounts state.
“The group's primary source of revenue is TV broadcasting monies and relegation from the league in which the club competes would result in a reduction in the club’s turnover and would bring forward debt reduction measures on external borrowings.
“Liquidity risk and the management of working capital is the main financial risk faced by the club. The mitigation of this risk involves complex financial modelling and forecasts, which enable management to make decisions in a timely manner to ensure the club has sufficient working capital and complies with all financial covenants.
“Another risk to the group is the consequence of non-compliance with rules and regulations, in particular Financial Fair Play regulations. The group takes all necessary steps to ensure compliance with relevant rules and regulations.”
Digging deeper into some of the other figures, the club’s wage to turnover ratio dropped from 88.68 per cent to 69.94 per cent.
The total number of staff employed by the club also dropped from 565 in 2023 to 388 in 2024.
Match day income stayed largely the same, rising marginally from £8.7m to £8.8m. Income from catering dropped from £2.34m to £836,000, while retail sales also dropped from £2.8m to £2.6m.
The club owes £92m in bank loans, up from £70m last year. That itself was up from £45m in 2022.
After the reporting date, the Clarets have brought in £87.7m in player sales which will be included in next year’s accounts.