Burnley accounts show £9m loss only after Everton compensation payment
Burnley's improved 2025-26 financial results rely heavily on a £38.8m Everton compensation payment that is under appeal, while the club remains in the Championship relegation zone.
Burnley have reported a £9m loss for 2025-26, a marked improvement on losses of £24m-£29m across the previous three seasons, but the figure depends on one-off income including a landmark compensation payment from Everton. Without that payment, the loss would have been £47.8m, a record for the club, even though revenues reached an all-time high of £144.5m.
The Clarets received £38.8m from Everton over the Toffees' profit and sustainability breach in 2021-22, which was found to have affected Burnley's chances of avoiding relegation that season. The payout is subject to an appeal expected to be heard in January, and the board stated that no provision should be included for it, with the outcome potentially ranging from nothing to the full award being repayable.
The accounts also revealed that £77.7m owed to Burnley by Velocity Capital, the holding company, has now been paid, clearing much of the debt used in ALK Capital's leveraged buyout. Total borrowings fell to £62.9m from £142.3m, bank loans dropped from £105m to £70.1m, and factored debts were cut from £37m to £16.1m. Before the takeover, Burnley were debt free.
Kieran Maguire, professor of football finance at the University of Liverpool, said the underlying picture showed the club was still losing more than £1m a week despite Premier League revenues, and relied on player sales and the Everton settlement to make the figures more palatable. He said a closer look suggested Burnley's underlying issues remain.
The accounts warned that factors including the compensation appeal could cast significant doubt on the club as a going concern. On the pitch, Burnley sit in the Championship relegation zone with one win from 14 games under new manager Fabio Celestini, who is yet to win in two matches, and are four points adrift in the bottom three. Supporters have expressed concern about the club's direction since the leveraged buyout.
Image: Getty Images / BBC Sport
