Burnley will be slapped with a £65MILLION fine if they are relegated before 2026 – with Premier League club facing sanction as part of loan interest taken out by their new owners
- Burnley are in danger of being relegated from the Premier League this season
- If that was to happen, the Clarets would have to pay £65million due to an early repayment clause in a loan taken out by the club’s new owners
- The loan is interest only until December 2025, with repayments at eight per cent
Burnley have confirmed they face a £65million penalty if they are relegated from the Premier League.
The bill is due to an early repayment clause in a loan taken out by the club’s new owners, revealed by Sportsmail in January.
The club’s 2020-21 accounts confirm the existence of the clause, which state the balance of the £65m loan will be due if Burnley are relegated before 2026.
Burnley would have to pay a £65million penalty if they are relegated from the Premier League
The bill is due to an early repayment clause in a loan taken out by the Clarets’ new owners (centre, new owner Alan Pace) and is in place until 2026
The loan is interest only until December 2025, with repayments at eight per cent, but relegation will bring forward the repayment date. The club would also lose £50m in TV and prize money in their first season after relegation, with more losses to follow, leading to a fire sale of players.
‘The group’s reserves are sufficient to enable a significant proportion of the balance to be settled by way of dividends if required,’ the accounts state.
They also confirm there would be a major reduction in wages upon relegation, as well as money from the sale of players ‘as is common for many clubs relegated from the Premier League’.
Burnley have £50m in cash reserves – down from £80m last year, due to the impact of the pandemic. Over the year to July 2021, the club’s turnover fell from £134m to £115m, which the club said was owing to the ‘lack of fan attendance’.
Mike Jackson’s side currently sit two points above the drop zone but have played a game more