The original £65m loan was partially paid off, then refinanced and extended to reach £105m in the 2024-25 accounts. Over six years, debts related to the leveraged buyout and associated interest had increased. Burnley owed £37m at an interest rate of 12.75%. If Everton are successful, and Burnley were to file their accounts next April, the £38.8m could not be included in the 2025-26 accounts. By reporting early, Burnley can include it and avoid potentially recording the record loss.
Burnley reported a £9m loss for 2025-26 after receiving £38.8m from Everton, a payment that kept the club from posting a record deficit despite all-time high revenues of £144.5m.
Removing the payment would present a more realistic picture of the club's finances. Premier League broadcast income and top-flight status did not prevent ongoing strain.
The board stated that no provision should be included for the appeal, the result of which could range between nil and the full value of the award being repayable.
On the face of it the figures looked encouraging. A more forensic reading showed the result still depended on the Everton money.
If the Toffees win their appeal, the picture looks very different.
Without that compensation, the loss would have been £47.8m, according to the accounts. The Clarets still lost money, compared with losses of £24m to £29m in each of the previous three seasons. A £77.7m payment, funded by investment from the ownership group, does not mean all Burnley's financial concerns or debts have been resolved. Burnley had been debt-free before the takeover.
The accounts said a number of events, including the outcome of the ongoing compensation ruling appeal, could continue to cast significant doubt on the club as a going concern.