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hogesar

Burnley - Big Loan Repayment if relegated

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https://theathletic.com/news/burnley-face-significant-loan-repayment-if-they-are-relegated/0yF1fzI2hcar/

Doesn't specify how much but basically, if relegated the terms of their agreement are that payments are brought forward as early as the end of the season, where a 'significant' part of the £65 million loan will have to be repaid.

Could be hugely detrimental in them rebuilding for a Championship campaign.

Just going to mention in really small text that several on here pointed at Burnley and said "Look, they can get new owners and investment!" - yet to see the investment part come true...

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9 hours ago, hogesar said:

https://theathletic.com/news/burnley-face-significant-loan-repayment-if-they-are-relegated/0yF1fzI2hcar/

Doesn't specify how much but basically, if relegated the terms of their agreement are that payments are brought forward as early as the end of the season, where a 'significant' part of the £65 million loan will have to be repaid.

Could be hugely detrimental in them rebuilding for a Championship campaign.

Just going to mention in really small text that several on here pointed at Burnley and said "Look, they can get new owners and investment!" - yet to see the investment part come true...

I agree with you as far as the leveraged buy-out is concerned. Such arrangements are notoriously high risk in any environment. IF they are relegated the consequences could be severe.  However, it is absolute fact that 'on the field' they are making a hugely better fist of tying to stay up than us! We should look at 'Burnley FC' in the totality. IF they do survive then financially they will live to fight another day and probably quite comfortably as well.  

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35 minutes ago, yellowrider120 said:

IF they do survive then financially they will live to fight another day and probably quite comfortably as well.  

I suspect that they will survive this year, but they will continue to have the lowest revenue of Premier League clubs as well as having significant interest rate payments to make. 

If we stayed up, we would have more money than them, and only working capital interest rate payments.

Like it or not, the fact is that we are a better funded club in Burnley.

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11 hours ago, Dr Greenthumb said:

Articles like this make it harder for me to choose who I want to come down!!

Still Everton 

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12 hours ago, Ken Hairy said:

Still Everton 

Everton or Leeds? Everton or Leeds?  It's like trying to pick a prize from the raffle table when your ticket is pulled out. 😁

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14 hours ago, yellowrider120 said:

I agree with you as far as the leveraged buy-out is concerned. Such arrangements are notoriously high risk in any environment. IF they are relegated the consequences could be severe.  However, it is absolute fact that 'on the field' they are making a hugely better fist of tying to stay up than us! We should look at 'Burnley FC' in the totality. IF they do survive then financially they will live to fight another day and probably quite comfortably as well.  

They've done remarkably well to stay up as long as they have with (relatively) similar financial constraints to ourselves. I think you have to thank their playing style and physicality over anything else for that. You're correct though, they are an example of a similar size club who's done a lot better than us at staying in the top tier.

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But surely we want Burnley to go down anyway rather than Everton. Everton will destroy the Championship next season. Burnley probably wont

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On 04/05/2022 at 10:48, hogesar said:

https://theathletic.com/news/burnley-face-significant-loan-repayment-if-they-are-relegated/0yF1fzI2hcar/

Doesn't specify how much but basically, if relegated the terms of their agreement are that payments are brought forward as early as the end of the season, where a 'significant' part of the £65 million loan will have to be repaid.

Could be hugely detrimental in them rebuilding for a Championship campaign.

Just going to mention in really small text that several on here pointed at Burnley and said "Look, they can get new owners and investment!" - yet to see the investment part come true...

Win/win

Burnley financially be in trouble if they come down. 

Leeds will lose Raphina & Phillips and to see their fans go in meltdown over sacking Bielsa has cost them their place in the prem.

Everton will have to sell if they come down FFP will hit them hard and I will take great pleasure with Lampard getting relegated.

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8 hours ago, Rolf Harris said:

Everton have lost so much over the last few years, so not too sure they can buy themselves out due to ffp 

I could be wrong on this, but I'm not sure that overspending in the Premier league counts towards FFP in the Championship - I think that they are separate systems. It might be more interesting if they stay in the Premier League and see if there is any action taken against "the Liverpool giants."

https://talksport.com/football/1060041/everton-ffp-frank-lampard-farhad-moshiri-simon-jordan-premier-league/

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10 hours ago, Michael Starr said:

But surely we want Burnley to go down anyway rather than Everton. Everton will destroy the Championship next season. Burnley probably wont

Everton are up to their eyeballs in debt, I doubt any of their players have a relegation wage reduction clause. I’d love to see how they are going to get round FFP next season if they do get relegated. Everton will be the next Sunderland. 

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More detail on Burnley - apparent lack of cash flow. "Posh pay day loan"

 

 

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44 minutes ago, Badger said:

More detail on Burnley - apparent lack of cash flow. "Posh pay day loan"

 

 

On it's own, not that big of a deal but with everything else reported about Burnley, i'd be a bit concerned if i were a Burnley fan...

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Just now, hogesar said:

On it's own, not that big of a deal but with everything else reported about Burnley, i'd be a bit concerned if i were a Burnley fan...

It's not that unusual for clubs to borrow for working capital. Noticeable that the owners didn't put their hands in their pockets though!

I thought that the whole point of having investors was that they paid for everything not borrowed it!

Still, there will be plenty on here (who won't look at the thread) who will be convinced that when the new owners bought Burnley they gave £200 million to the football club! 😪 TBH, I'm not sure whether some of our local media figures understand this either?

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On 05/05/2022 at 21:38, Jersey Canary said:

Everton are up to their eyeballs in debt, I doubt any of their players have a relegation wage reduction clause. I’d love to see how they are going to get round FFP next season if they do get relegated. Everton will be the next Sunderland. 

I didn't think They'd need to get around ffp if they're only down for one season, which is a problem with ffp as a club could be relegated massively overspend and get promoted in one (or two) year and be fine, which I imagine is what they will try to do....as long as the owner can foot the bill for one year without their russian oligarch

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2 minutes ago, Graham Paddons Beard said:

Thought I’d bump this. 

Amazing - Burnley have won promotion after only 16 games. Must be a new record. 

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11 minutes ago, Graham Paddons Beard said:

No. They are third . They haven’t played the playoffs yet . 

Okay - as you were. Does the fact that they're currently third mean that they didn't have to repay a great chunk of money on relegation?

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26 minutes ago, Thirsty Lizard said:

Okay - as you were. Does the fact that they're currently third mean that they didn't have to repay a great chunk of money on relegation?

In practice though, couldn't this potentially just be solved by effectively refinancing? I assume it was, as Burnley aren't in administration.

So taking out a new loan to repay that loan. Its what George Osborne did with a lot of our historic debts.

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This should be converged with the accounts thread so that the FPAs can help us understand what we could be moaning about🙃

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1 hour ago, TeemuVanBasten said:

In practice though, couldn't this potentially just be solved by effectively refinancing? I assume it was, as Burnley aren't in administration.

So taking out a new loan to repay that loan. Its what George Osborne did with a lot of our historic debts.

In practice they 'solved' it by selling their best players - Nick Pope, Dwight McNeill, Nathan Collins and Maxwell Cornet for combined fees of about £67 million. 

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On 04/05/2022 at 21:24, yellowrider120 said:

I agree with you as far as the leveraged buy-out is concerned. Such arrangements are notoriously high risk in any environment. IF they are relegated the consequences could be severe.  However, it is absolute fact that 'on the field' they are making a hugely better fist of tying to stay up than us! We should look at 'Burnley FC' in the totality. IF they do survive then financially they will live to fight another day and probably quite comfortably as well.  

Yeah, and if they don't they're in administration, unable to pay staff wages and being docked points. 

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On 04/05/2022 at 10:48, hogesar said:

Could be hugely detrimental in them rebuilding for a Championship campaign.

Hasn't been the millstone that many thought...

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15 minutes ago, BarclayWazza said:

Hasn't been the millstone that many thought...

We obviously spout rubbish from this forum , any sniff of an opponent’s demise , we think we know it all ……. lol

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