hogesar 9,676 Posted May 4, 2022 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... 1 Share this post Link to post Share on other sites
Dr Greenthumb 749 Posted May 4, 2022 Articles like this make it harder for me to choose who I want to come down!! 1 Share this post Link to post Share on other sites
KiwiScot 1,443 Posted May 4, 2022 I'd want them to come down if there's going to be pressure like that Share this post Link to post Share on other sites
cambridgeshire canary 6,720 Posted May 4, 2022 Steals like I stole your topic without realising, apologies. Mods need to hurry up and add a 'delete thread you made' button or something 1 Share this post Link to post Share on other sites
yellowrider120 762 Posted May 4, 2022 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. Share this post Link to post Share on other sites
Badger 2,405 Posted May 4, 2022 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. Share this post Link to post Share on other sites
Ken Hairy 3,773 Posted May 4, 2022 11 hours ago, Dr Greenthumb said: Articles like this make it harder for me to choose who I want to come down!! Still Everton 1 Share this post Link to post Share on other sites
Sooty57 403 Posted May 5, 2022 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. 😁 1 Share this post Link to post Share on other sites
hogesar 9,676 Posted May 5, 2022 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. Share this post Link to post Share on other sites
Michael Starr 519 Posted May 5, 2022 But surely we want Burnley to go down anyway rather than Everton. Everton will destroy the Championship next season. Burnley probably wont Share this post Link to post Share on other sites
Rolf Harris 31 Posted May 5, 2022 Everton have lost so much over the last few years, so not too sure they can buy themselves out due to ffp Share this post Link to post Share on other sites
Move Klose 303 Posted May 5, 2022 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. Share this post Link to post Share on other sites
Badger 2,405 Posted May 5, 2022 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/ 2 Share this post Link to post Share on other sites
Jersey Canary 143 Posted May 5, 2022 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. Share this post Link to post Share on other sites
Badger 2,405 Posted May 6, 2022 More detail on Burnley - apparent lack of cash flow. "Posh pay day loan" Share this post Link to post Share on other sites
hogesar 9,676 Posted May 6, 2022 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... Share this post Link to post Share on other sites
Badger 2,405 Posted May 6, 2022 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? 1 Share this post Link to post Share on other sites
cornish sam 953 Posted May 8, 2022 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 Share this post Link to post Share on other sites
Graham Paddons Beard 2,431 Posted October 22, 2022 Thought I’d bump this. Share this post Link to post Share on other sites
Thirsty Lizard 3,165 Posted October 22, 2022 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. Share this post Link to post Share on other sites
Graham Paddons Beard 2,431 Posted October 22, 2022 No. They are third . They haven’t played the playoffs yet . Share this post Link to post Share on other sites
Thirsty Lizard 3,165 Posted October 22, 2022 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? Share this post Link to post Share on other sites
TeemuVanBasten 3,327 Posted October 22, 2022 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. Share this post Link to post Share on other sites
nutty nigel 7,536 Posted October 22, 2022 This should be converged with the accounts thread so that the FPAs can help us understand what we could be moaning about🙃 Share this post Link to post Share on other sites
Thirsty Lizard 3,165 Posted October 22, 2022 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. Share this post Link to post Share on other sites
littleyellowbirdie 2,550 Posted October 22, 2022 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. 1 Share this post Link to post Share on other sites
Ken Hairy 3,773 Posted October 22, 2022 Somebody appears to be ignoring this thread tonight 😉. Share this post Link to post Share on other sites
BarclayWazza 91 Posted January 3, 2023 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... Share this post Link to post Share on other sites
TIL 1010 4,748 Posted January 3, 2023 One or two cringey posts that have not stood the test of time. Share this post Link to post Share on other sites
Heading South 24 Posted January 3, 2023 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 Share this post Link to post Share on other sites