By Fatma Younis
Burnley's latest accounts show a reduced loss of £9m for 2025-26, down from £24m-£29m in previous seasons, largely due to a £77.7m payment from holding company Velocity Capital and a £38.8m compensation payout from Everton related to a 2021-22 profit and sustainability breach. However, the Everton payment is subject to an appeal expected in January, and without it the loss would have been a record £47.8m.
Leveraged Buyout and Debt Accumulation
The club's financial decline traces to ALK Capital's December 2020 takeover, a leveraged buyout that used a £65m loan secured against club assets, £37m from Burnley's own cash reserves, and £80.1m owed by Velocity Capital. By 2024-25, total borrowings reached £142.3m, the 10th highest in English football, with interest rates up to 12.75%.
Everton Compensation Critical to Accounts
The £38.8m from Everton stems from a ruling that the Toffees' financial breach impacted Burnley's relegation chances in 2021-22. The club's board stated no provision for the appeal, which could require repayment of the full amount. Professor Kieran Maguire of the University of Liverpool noted the underlying loss exceeds £1m per week even with Premier League revenue.
Debt Reduction but Risks Remain
The recent inflows cut total debt to £62.9m from £142.3m, with bank loans falling to £70.1m and factored debt to £16.1m. Yet £24.2m of loans are due in January and £21.6m in August, and the club is negotiating refinancing. The accounts warn that the Everton appeal outcome could cast significant doubt on the club as a going concern.
On-Field Struggles Add Pressure
Burnley sit in the Championship relegation zone after 14 games, with one win and a record 400-day home winless streak. New manager Fabio Celestini has yet to win in two matches. The 2026-27 accounts will include £38m in player sales and £48m in parachute payments, but relegation to League One would worsen the financial outlook.
