Clarets break even after year impacted by Covid-19
The club saw its profit before tax decline from £5m to break-even due to the pandemic’s effect which saw the Premier League season suspended for three months before resuming with Project Restart on 17th June.
With the season completed without any fans in the stadium there were also wider financial impacts including a significant broadcaster rebate and additional multi-million-pound costs within the extended financial year.
However, the club secured Premier League football for a fifth successive year despite an unprecedented and difficult season.
Turnover for the financial year decreased slightly from the previous, from £138m to £134m, largely due to an £8.5m broadcaster rebate. This reduced turnover was despite the club achieving its second highest Premier League finish of 10th – a five-place improvement on the season before.
The delayed Premier League season resulted in the financial period extending a 13th month into July which added an extra £9m of costs to the top line.
Wages again grew from £87m to £94m, adjusted for a 12-month comparison period, partially due to the increased bonus paid to players for the higher Premier League finish. The wage to turnover ratio increased from 62.8% to 70.2%.
Overall, the loss of income associated with the COVID-19 pandemic amounted to roughly £10.5m.