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Burnley would face 'Significant' loan repayments if relegated from the Premier League

Burnley would face 'Significant' loan repayments if relegated from the Premier League

The stakes at play in Burnley’s fight against relegation have this morning been reported.

The figures state that relegation would require a “significant proportion” of a 65-million-pound loan to be repaid.

It relates to the club's takeover in December 2020 and the information's contained in the latest financial accounts.

 

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“In the event of the club’s relegation from the Premier League, the repayment scheduled for the capital element of the loan is brought forward,” the accounts state.

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“A significant proportion falling due for repayment shortly after the end of the football season in which the relegation event takes place.

“This repayment would, therefore, be expected to fall due within less than one year from the balance sheet date in these circumstances.

“In a continuing relegation scenario, a further significant reduction of the loan balance would also take place the following season.”

The loan carries an interest rate of eight per cent.

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On top of needing to repay the loan, Burnley would face a considerable drop in TV revenue.

A run of four matches unbeaten under caretaker manager Mike Jackson has taken the team out of the bottom three.

The clubs remaining four fixtures will make for box-office entertainment.

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