# Everton's £38.8m payment prevents Burnley record loss

> Everton's £38.8m compensation stops Burnley's record £47.8m loss.
- Title: Everton's £38.8m payment prevents Burnley record loss
- Summary: 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…
- Keywords: everton, burnley, premier league, championship, leverage buyout, financial compensation, club debt, BBC Sport
- Source: BBC Sport — https://bbc.co.uk/sport/football/articles/c893zeq4eln1o
- Published: 2026-11-04T17:48:19.779+00:00
- Read time: 1 min
- Topics: everton, burnley, premier league, championship, leverage buyout, financial compensation, club debt, sports
## 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.
## Key takeaway

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.