Co-Chairman Mike Garlick on the club’s recently announced financial results
Good afternoon everyone and welcome back to Turf Moor for today’s game against a Southampton side who have been excellent this season.
I hope you will all now have digested the annual accounts, which I think show we are in great shape.
Our turnover was £19.5m, up £4.3m, and we made a £300k profit before bonuses, which equate to around £8m.
We repaid around £4m in Director loans, while a further £3.5m were converted into shares by John B and I. We also repaid a further £4m in external loans and £1.5m of the Turf Moor Bond we used to buy the ground back.
By repaying that, it makes it a little easier to service every month
The total money that has therefore gone out of the business is £17m, and hopefully these figures will allow people to understand more where the cash goes.
None of the other promoted clubs got anywhere near break-even. Both showed heavy losses – and I’m not sure over the past five or six years if anyone has done that and got into the Premier League, so it’s quite a unique record that we achieved and we should be proud of it.
We tried to skew was much as possible in terms of incentives and bonuses to inspire and hopefully motivate the players and that clearly worked, along with their not-inconsiderable talent.
I think we, as a club, have to follow the Financial Fair Play model. We don’t have a major benefactor, so couldn’t run up losses of £20m every year, as some clubs can. We cut our cloth accordingly, as Barry Kilby used to say, and he is quite right.
We have cash in the bank now, which is important and there are plans on other expenditure, such as Gawthorpe, where we hope to develop a full indoor training facility.
The formal planning process has just started on that, and we hope to start next summer, so that’s a major investment.
January is also coming, so we will see what Santa brings.
We are establishing an overseas scouting network and there’s a possibility of the loan market, as well as looking at permanent signings, to strengthen.
I feel we have to breed talent, but that’s more for the long term. But we have to balance that with some short-term quality in January and hopefully we can do that.
More importantly, we are not looking to let anyone go in January, despite the speculation, so as I say all in all, I feel we are in great shape to go forwards.
Certainly on the pitch, if someone had said to me that we‘d be right in the pack with 15 games gone, we would have been fairly happy with that.
We are in touch with six of seven clubs in the league, who are no more than three points away, so there’s lots to play for, that’s for sure.
For me, the really encouraging thing is we are taking points off nearly everyone in the bottom half. Last time, we beat Manchester United, which was fantastic, but we couldn’t beat Blackburn, Portsmouth, Wigan, etc. That’s the key difference, so if we can keep picking the points up thereand some bonus points against the leading lights, it augurs well.
We’ve just drawn Spurs in the cup and I remember the FA Cup final programme from 1962 stating that Burnley’s great strength is that they play as a team. Fifty years on, nothing has changed.
Our great strength is the unit and the solidarity, not individuals. That can’t work for us.
Enjoy the game