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Club News

Clarets Post Promotion Profit

3 December 2014

Burnley Football Club made a £300,000 profit while achieving promotion in the financial year ending June 2014.

However, £7.9m of bonus payments directly related to promotion to the Premier League resulted in an overall £7.6m loss.

This compares to a £7.6m loss announced in 2013, which was reported before the sale of striker Charlie Austin to Queens Park Rangers.

In a joint-statement to shareholders, Joint chairmen Mike Garlick and John Banaszkiewicz said: “When we took on the responsibility of co-chairmanship, we stated that we would manage the club’s finances sensibly while keeping the club as competitive as possible.

“We are happy to report that even though these accounts show a £7.6m loss before tax, the majority of this is due to the additional, exceptional one-off costs that promotion entails.

“Without these one-off costs we are very pleased to report that the club would have been in a break-even position, keeping our promise made during the year.

“The 2013/14 season will certainly go down as one of the best in the club’s long history, both in terms of on-the-field performances and off-the-field commercial and financial management.”

The additional costs quoted included players and staff bonuses, bonuses paid to other clubs in relation to the purchase of players and other one-off items.

The latest accounts show a turnover of £19.6m, a £4.3m increase compared with 2012/13, ultimately due to the success on the field.

Directors’ loans were repaid to the tune of £4m, with a further £4m paid out in other external loans, while around £1.5m of the Turf Moor ‘Buy-Back’ Bond – re-purchasing the stadium and Gawthorpe Training facility - was also repaid to make the debt easier to service.

Costs remain under control and have not increased since the 2012/13 financial year.

The restructuring of the football club two years ago means there is no longer a requirement for the parent company, Burnley FC Holdings Ltd, to hold an Annual General meeting.

The Financial Report for year ending June 2014, along with the Chairman’s Report and Business Review, can be accessed by clicking the links.




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