Burnley Financial Results 2023/24

Burnley have recently secured promotion back to the Premier League, bouncing back after just one year in the Championship.

The season has been a great success on the pitch. Burnley amassed 100 points, went on a 31-match unbeaten run, and only missed out on the Championship title to Leeds United on goal difference. Yet, this is familiar ground: in 2022/23, they achieved an even greater haul of 101 points, only to struggle the following year in the Premier League.

This report looks back on the club’s financial performance during their 2023/24 campaign in the Premier League.

Expectations were high at the start of the season. Buoyed by their dominance in the Championship the previous year, a highly regarded manager, and significant squad investment, Burnley looked better positioned to survive the premier league than fellow promoted sides Luton Town and Sheffield United. However, their return to the Premier League never gained traction. They remained in the relegation zone all season, finishing 19th and suffering immediate relegation. They also had limited success in domestic competitions, exiting the FA Cup in round 3 and the Carabao Cup in round 4.

In recent seasons, the club has been financially well-managed. Burnley has generally reported profits during its time in the Premier League, though, like many clubs, has sustained losses while competing in the Championship.

In 2020, American investor Alan Pace acquired an 84% controlling stake in a deal reportedly worth £200 million. The takeover was funded through debt, initially involving a £65 million loan that has since grown to £112 million. While this level of debt is far from the scale of clubs like Manchester United, it can be a financial burden for a club of Burnley’s size and has led to substantial interest payments.

Overview of Burnley's Financial Results Season 2023/24

Being back in the Premier League meant central payments significantly boosted Burnley’s revenue as it jumped from £65 million in the Championship to £138 million. However, Burnley’s staff costs nearly doubled to £136 million—reflecting a clear ambition to compete at the highest level. This rise in operating costs, combined with growing interest payments on their increasing debt, led to a pre-tax loss of £28 million.

Financial Highlights for the 2023/24 Season:

Turnover

• As expected, turnover rose significantly to £133 million, up from £65 million the previous year. Despite the increase, this was still the second-lowest revenue in the Premier League.

• Broadcast income totaled £111 million—accounting for 83% of overall revenue.

• Matchday revenue remained at £8.8 million. There was fewer home fixtures compared to the Championship, but this was offset by ticket price increases.

• Commercial revenue improved by £6 million, reaching £14 million for the year.

Staff Costs

• A number of player acquisitions drove total salaries up from £58 million to £93 million, while amortisation charges nearly doubled to £42 million.

• Despite these increases, Burnley’s total staff costs of £136 million were still the third lowest in the league—higher only than Luton Town and Sheffield United.

• Post-season, the sale of goalkeeper Arijanet Muric contributed in part to £15 million in profit from player trading.

Profitability

• The club recorded a pre-tax loss of £28 million, an improvement on the £36 million loss reported in the previous year.

• Interest expenses more than doubled, rising from £9 million to £19 million as debt levels increased.

Player Trading

• Burnley spent £73 million on new signings, a slight decrease from the £84 million spent the prior season which included several acquisitions during the summer 2023 transfer window.

• After generating £17 million from player sales, the club’s net transfer spend stood at £56 million.

Football Debt

• The club has £112 million in outstanding bank loans.

• Burnley has £97 million in loans receivable from its parent entity—part of the original acquisition deal. Note, no interest is charged on this internal loan receivable.

• The club also owes £83 million to other clubs in outstanding transfer fee, while being owed £27 million in receivables from player sales.

Cash Flow

• Operating cash flow was negative £15 million (which is before investment and financing activities).

• A net £31 million was spent on player acquisitions, alongside £3 million in facility-related investments.

• To cover the funding gap, the club increased its loans by £37 million, with the remainder drawn from existing cash reserves.

The club is expected to receive around £45 million in parachute payments for this Championship season. While this is a significant decline from their previous Premier League distributions, they have likely generated over £60 million in profit from player sales, including the departures of Wilson Odobert, Sander Berge, Dara O'Shea, and others. Additionally, both salaries and amortisation expenses are set to decrease. As a result, the club is likely to break even this season, depending on the scale of salary reductions implemented.

Burnley Turnover 2023/24

As a smaller club, Burnley's turnover is highly reliant on their league status and the corresponding distributions from the Premier League. In the 2023/24 season, they received £111 million from central Premier League payments, accounting for 83% of their total income. In comparison, matchday revenue contributed just £9 million, while commercial income totaled £14 million.

Broadcast revenue jumped from £48 million in the Championship to £111 million in the premier league. While matchday revenue was flat, commercial income increased to £14 million although this was lower than during the 2018/19 and 2019/20 seasons.

Matchday Revenue

Matchday revenue is influenced by factors such as the number of home games, average attendance, ticket prices, and the club's ability to generate income from hospitality events and corporate boxes. The only exception to this is domestic cup matches, where revenue is shared between the clubs and the FA.

Burnley’s home ground, Turf Moor, has a capacity of 22,546. In the 2023/24 season, the club averaged 21,153 spectators per league match, placing them 16th in the Premier League for attendance. Also, their average revenue of just £19.30 per paying fan was the lowest in the league. This combination of a smaller stadium and low ticket prices means the club is likely to remain among the lowest earners of matchday income in the top flight.

Over the past five years, approximately £17 million has been invested in Burnley’s facilities, a relatively low level of investment. There are currently no plans to increase the stadium’s capacity.

Broadcast Revenue

Broadcast revenue primarily comes from central distributions from the Premier League, UEFA (if the club participates in European competitions), and revenue generated through the club's media platform. For United, broadcast revenue is almost entirely derived from Premier League distributions.

The chart below illustrates the distribution by club for the 2023/24 season. A significant portion, 67%, is evenly distributed among all clubs, with the remainder based on league position and the number of televised live games. For more information on how the Premier League central payment distribution system works check out our blog Premier League Broadcast Distribution for Season 2023/24.

Burnley earned £95.1 million from the equal share, £5.7 million for finishing in 18th place, and £9.3 million from their 10 live televised games, the minimum facility fees a club will receive.

Following relegation, the club is set to receive £42 million in parachute payments this season. On return to the Premier League next season, this figure will rise to at least £110 million, with the potential for additional income based on performance.

Commercial Revenue

Burnley’s commercial revenue—which includes sponsorships, retail, stadium tours, and other business operations—rose to £14 million in 2023/24, up from £8 million the previous season. However, this figure remains below the levels recorded during their Premier League campaigns in 2018/19 and 2019/20.

Like many Premier League clubs, Burnley partnered with the betting industry, securing a deal with Gibraltar-based betting and casino operator W88. The agreement, covering front-of-shirt sponsorship for both the men’s and women’s teams, was reportedly worth around £7 million per year.

They have since entered a two-year deal with another betting firm, 96.com—a crypto gambling brand—which runs through to the 2026/27 season. By then, Premier League clubs will be prohibited from displaying betting company logos or names on the front of shirts.

Despite the increase, Burnley’s total commercial revenue of £14 million ranked third-lowest in the league, ahead of only fellow relegated sides Luton and Sheffield United.

Season 2023/24 Staff Costs

As anticipated, Burnley’s staff costs rose sharply in 2023/24 following the arrival of several new signings.

Player wages increased from £57 million to £93 million, while amortisation—the write down of player transfer fees—nearly doubled from £22 million to £43 million. This reflects the club’s investment of over £150 million in the squad over the past two seasons.

Despite the increase, Burnley’s figures remain modest by Premier League standards. Their total staff costs of £135 million were the third lowest in the league—though still £50 million higher than Sheffield United’s. This underscores the scale of the challenge clubs face when returning to the top flight.

Profit on Player Sales

Burnley recorded £15 million in profit from player sales during the 2023/24 season. This figure is higher than expected, as the only notable transfer before the financial year-end on July 31st was Arijanet Muric’s £8 million move to Ipswich.

Season 2023/24 Profit and Loss

Competing in the Premier League requires substantial financial investment, making profitability a major challenge for smaller clubs. In 2023/24, Sheffield United and Luton Town adopted a cautious approach, keeping squad spending low. While both managed to be profitable, the lack of investment contributed to immediate relegation.

Nottingham Forest pursued a contrasting strategy upon their return in 2022/23, opting for heavy spending in an effort to establish themselves. Though risky and nearly derailed by a points deduction and a narrow escape from relegation, the gamble has started to pay off with improved performance this season.

Burnley’s approach fell somewhere in between. Over the 2022/23 and 2023/24 seasons, the club spent over £150 million on player acquisitions—a significant outlay by Burnley’s standards. This pushed wages to £93 million and amortisation charges to £43 million. While these figures remain modest relative to most Premier League clubs, they were enough to contribute to an operating loss (excluding player sales and interest) of £26 million.

The club generated £15 million from player sales, but rising debt levels led to interest payments of £19 million. These were driven by high-interest bank loans and finance costs related to outstanding transfer fees. As a result, Burnley posted an overall pre-tax loss of £28 million.

Burnley’s £28 million loss is not considered large by Premier League standards, with seven clubs reporting even greater losses. It remains within the boundaries of the Profit and Sustainability Rules, as certain expenses—such as investment in the women’s team and youth development—can be deducted when calculating compliance. Nevertheless, a loss of this scale still requires funding, underscoring the need for ongoing financial backing from the club’s ownership.

The club is set to receive approximately £45 million in parachute payments during this Championship season, a big drop from the 111 million from the Premier League. However, they have likely generated over £60 million in profit from player sales. As a result, the club is likely to break even for the year, although this will ultimately depend on the extent of salary reductions put in place.

Season 2023/24 Player Trading

As a club that has recently fluctuated between the Premier League and the Championship, Burnley has experienced significant player turnover—unsurprising for a so-called ‘yo-yo’ club.

During the period covered by this report, Burnley spent £73 million on new signings, following £84 million the previous year. However, because the transfer window overlaps with the club’s financial year-end—later than most Premier League clubs—some of this spending occurred at the end of the season as preparation for the following campaign.

Notable signings included Amdouni, Trafford, Ramsey, Beyer, and Berg. The club also recorded £17 million in player sales, slightly higher than expected given that Muric’s transfer at season end was the only significant departure.

By Burnley’s standards, the £157 million invested over the past two seasons represents a significant outlay. However, as shown below, this figure ranks only 15th in the Premier League—though it does exceed the spending of clubs like Brentford, Everton, and Crystal Palace. It’s also worth noting that a small part this £157 million was spent at the end of the season, intended as preparation for their Championship campaign.

The chart also illustrates the stark contrast in approaches across the league, from Chelsea’s aggressive player acquisition strategy to the minimal spending by Luton Town and Sheffield United upon their return to the top flight.

Following their relegation from the Premier League, Burnley saw significant squad turnover in the summer 2024 transfer window, with 20 players departing and 15 new arrivals—highlighting the typical reshuffling that occurs after dropping to the Championship.

Most of the outgoing transfers will be reflected in the 2024/25 financial accounts, with total sales estimated at £80 million. Based on current projections, this is expected to generate around £60 million in profit.

Football Net Debt

As previously noted, Alan Pace used a leveraged buyout structure to help finance his acquisition of Burnley.

As part of the transaction, the club assumed £65 million in debt and subsequently loaned £102 million to its parent company, then Calder Vale Holdings. The external debt is held with financial institutions and accrues interest at market rates, while the loan to the parent company is interest-free.

By the end of the 2023/24 season, Burnley’s external debt had increased to £112 million, with interest rates ranging between 8.5% and 12%. Meanwhile, the loan receivable from the parent company had declined to £97 million.

There is no apparent obligation for the parent loan to be repaid, and its settlement remains at the discretion of the parent company. While on paper the loan receivable partially offsets the external debt, the practical reality is that Burnley is carrying £112 million in liabilities and incurred £12 million in interest payments during the 2023/24 season.

In addition, the club had £83 million in outstanding transfer fee obligations to other clubs, while £27 million was due in incoming transfer receivables.

Cash Flow

During the 2023/24 season, Burnley recorded negative operating cash flows of £15 million. The club also spent £61 million on player acquisitions and £3 million on facility improvements, while generating £31 million from player sales.

To cover the resulting £48 million shortfall, Burnley increased their bank loans by £37 million, with the remaining balance funded from existing cash reserves.

Financial Outlook

Their immediate return to the Premier League is a massive boost for Burnley and will again significantly lift their financial resources. The upcoming transfer window will be crucial, and it will be interesting to see how much the club is willing to invest in order to avoid another swift relegation.

Looking ahead, many will be hoping that at least one of the promoted sides—Leeds, Burnley, or Sunderland—manages to stay up, breaking the recent trend of all three newcomers going straight back down. Leeds are likely the favourites to survive, but Burnley have the most recent Premier League experience. Probably few outside Wearside will give Sunderland much chance with such a young side, but who knows.