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Clarets Offset £8m Loss

18 August 2013

Chairman insists club is in healthy position

Mike Garlick insists the club is on course to meet the football's new financial fair play rules, despite revealing an £8m loss for last season.

The Burnley Football Club co-Chairman used his Claret & You matchday magazine notes this weekend to highlight the losses to supporters, following the recent sale of Charlie Austin.

However, Mr Garlick has revealed the club is now back on an even keel and in a healthier situation than many of its Championship counterparts as it looks to comply with the new legislation.

Speaking on BBC Radio Lancashire on Saturday, he said: “I think it is important to be honest with the fans and always be straight with them.

“The (£8m) loss is for last season, so that is the first thing to say. But that’s the bad news.

“There is some good news though. Because of all the work put in over the last seven to eight months by co-Chairman John Banaszkiewicz, myself, all the other directors and the manager, this current season we are forecasting to break even.

“Going forward, that means we will be compliant with the financial fair play rules.

Co Chairmen Mike Garlick and John Banaszkiewicz

“The loss is behind us and we are moving forwards and doing the right things. We have cut the wage bill from last season and looked at all the costs and we’re on the right track.”

He added: “I don’t think there will be many clubs in the Championship that can claim they will be breaking even.

“I think 80 to 85 per cent of clubs are running at a loss. That is not to say we won’t make a loss ever again, but if we are breaking even we are on the right track and heading towards the stability that the fans want.”

The Clarets are now in their final year of four annual parachute payments aimed at cushioning the financial blow of relegation and the subsequent impact on player wages.

And following Austin’s move to QPR last month, Mr Garlick insisted there is now limited funding available for manager Sean Dyche to strengthen his squad.

He said: “If you have an £8m loss you have to bridge that somehow and the sale of Charlie will actually go into this season’s figures. 

“So when I say we will break even, that is before the sale of Charlie and in terms of player trading we will actually show a profit.

“We have made some extra budget available for Sean. We don’t have too much money to bring people in, but they have to be the right people and improve what we’ve got.

“Looking at the team I think we are competitive and we have a good, united squad that has made a reasonable start. We hope to keep that going.”

In closing – and in tandem with his programme notes - Mr Garlick insisted the club was actively seeking new investment to strengthen its position.

He said: “I am not aware of any Russian investors, but we are always on the look out for people that want to help the club and that is an ongoing process. It always has been.”

Mr Garlick’s matchday magazine notes, originally printed in Claret & You on Saturday, August 17, 2013, can be read HERE.

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