Burnley finances and their January transfer plans – The Athletic

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This week Burnley chairman Alan Pace released a statement in which he dismissed concerns about the club’s financial situation and sought to reassure supporters after reports that payments due to former directors had been delayed.

Pace said “every payment required under the terms has been made on time and in full, the future payment schedule remains in order, and all parties have no concerns about the structure or compliance with these terms.”

The worrying reports came during a transfer window in which Burnley have so far failed to sign new players and sold first-choice striker Chris Wood to relegation rivals Newcastle United for £25 million.

Here, The Athletic explain Burnley’s financial situation and what it means for the club’s plans over the remainder of the transfer window.

What is the background to ALK’s ownership of Burnley and what are the concerns?

There have always been question marks surrounding ALK Capital’s purchase of Burnley and how it was financed.

The owners, who took over in December 2020, bought an 84% stake in the club for over £150million. They are said to have taken out a large loan from MSD Holdings and used much of the club’s cash reserves to help fund the move, while sources have suggested they have invested around £15m of their own money, as The Athletic reported a year ago.

Although the club’s new owners are seen as hard-working and smart people, some thought the plan might be naïve, while others worried about the amount of money they actually had to invest to help build and maintain it. improve the club.

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