According to a source, Burnley has taken out a £12.5 million loan amid recent worries over the club’s financial viability.
The announcement comes after the club’s records for the year ended 30 June 2021 were released recently, revealing the importance of ALK Capital’s leveraged acquisition of the club in December 2020.
Following the release of those accounts, it was claimed that if Burnley is relegated from the Premier League before 2026, they will have to repay a major amount of a £65 million loan taken out to support the buyout.
Many Clarets fans are apprehensive as a consequence, despite chairman Alan Pace’s assurances that the controversial way of purchasing the Premier League team is viable and does not jeopardize the club’s financial stability.
However, according to LancsLive, the Lancashire side has taken out a fresh £12.5 million loan to aid with financial flow.
The loan is in connection with the January sale of Chris Wood to Newcastle United, who paid £25 million for the striker when the Magpies exercised a contract release option.
According to the article, Burnley were not supposed to pay the second installment of £12.5 million until February 2023, but they borrowed the money upfront from Macquarie Bank in Australia.
The loan will be returned with interest, and although it will help Burnley’s short-term finances ahead of the summer transfer window, it will raise concerns about the club’s long-term financial plan.
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