Burnleys relegation losses

[bakajack]

https://www.dailymail.co.uk/sport/sportsnews/article-10845465/Burnleys-Premier-League-hangover-years-no-manager-65M-debt-firesale-players.html

No manager
9 players out of contract
Many more will look to move on
Significant portion of a £65m loan taken out by owners has to be repaid immediately if relegated
Remainder of loan has to be paid within the year

Likely going to have to sell off the majority of their star players including Roberts, Pope, Cornett, Collins and Weghorst. Say what you will about our owners and some of the questionable acquisitions we made to try to dodge the drop but by comparison to this we came out smelling of roses rather than turd.

 

[Cooperman]

That makes for extremely grim reading.

What has their financial performance been like in recent years and have they developed infrastructure and assets off of the pitch? It’s a dire position to be in if all they have to show for six seasons of Premier League is a pile of expired contracts.

 

[CurtessECarr]

The promised land of the Prem seems to be a risk of sudden demise if relegated? They all pay over the top to stay up (Norwich excluded) and it's backfired dramatically on quite a few clubs. Our fire sale on relegation certainly helped our financial position. Ayew was the biggest chain around our necks that we couldn't shift.

 

[JustJack]

Yes I think a second successive relegation is more likely than an immediate return.

 

[Uxy]

Next level stuff right there.

Leveraged buyouts are particularly incompatible with club ownership IMO. I expect they'll survive but unless they get lucky in the transfer market they are going to be in a right mess.

 

[bakajack]

Next level stuff right there.

Leveraged buyouts are particularly incompatible with club ownership IMO. I expect they'll survive but unless they get lucky in the transfer market they are going to be in a right mess.

The most terrifying part is the expectation that the entirety of their first year's parachute payments will have to be used to repay the part of the loan now immediately due leaving them as a club with championship income and premier league wages.

 

[bakajack]

https://www.dailymail.co.uk/sport/football/article-10846869/Burnleys-owners-seek-loans-help-club-cope-crippling-debt-relegation.html

That sheds a bit more light on it.
I always find it bizarre that a prospective owner can use the company's own bank account to fund a takeover.

 

[Uxy]

https://www.dailymail.co.uk/sport/football/article-10846869/Burnleys-owners-seek-loans-help-club-cope-crippling-debt-relegation.html

That sheds a bit more light on it.
I always find it bizarre that a prospective owner can use the company's own bank account to fund a takeover.

Interestingly, Macquarie filed a charge a couple of weeks ago, but not clear if that related to earlier in the year, if that article is right.

Either way, their club is significantly weaker after this episode, and to whose benefit?