From BBC Sport · · 1m 40s
Everton's £38.8m payment prevents Burnley record loss
Everton's £38.8m compensation stops Burnley's record £47.8m loss.
In brief
Everton's £38.8m compensation stops Burnley's record £47.8m loss. Burnley avoided a £47.8m loss by receiving £38.8m from Everton due to a 2021-22 profit breach, though the payout is subject to appeal. Originally reported by BBC Sport.
Burnley's financial state six years ago
Burnley were debt free with £41.65m cash in the bank and five straight Premier League seasons.
ALK Capital's leveraged buyout
ALK Capital bought Burnley using £65m loans secured against assets and £37m from the club's bank balance.
Velocity Capital's debt
Velocity Capital, the holding company, owed Burnley £80.1m for the club's purchase.
Debt refinancing
The original £65m loan was extended to £105m in 2024-25 accounts with 12% interest rates.
Burnley's 2025-26 accounts
Burnley reported a £9m loss for 2025-26, including £38.8m from Everton due to a 2021-22 profit breach.
Everton's compensation payout
Everton paid Burnley £38.8m for the 2021-22 profit breach, but the payout is subject to appeal.
Compensation appeal status
The appeal for Everton's £38.8m payment is expected to be heard in January.
Impact of the payout
Without the payout, Burnley's 2025-26 loss would have been £47.8m, a record loss despite £144.5m revenue.
Debt reduction
Burnley's debt dropped from £142.3m to £62.9m, with bank loans reduced from £105m to £70.1m.
Debt factoring reduction
Burnley reduced debt factoring from £37m to £16.1m, but £24.2m of bank loans is due in January.
Championship performance
Burnley sit in the Championship relegation zone with one win in 14 games and four points adrift.
Future financial risks
If Everton wins the appeal, Burnley's debt could rise and the club faces ongoing financial challenges.
What to remember
Burnley avoided a £47.8m loss by receiving £38.8m from Everton due to a 2021-22 profit breach, though the payout is subject to appeal.
