Burnley’s latest accounts show a £9m loss for 2025-26, a marked improvement on losses of £24m to £29m across the previous three seasons. However, the result was significantly improved by a £38.8m compensation payment from Everton, which could still have to be repaid if the club wins its appeal, expected to be heard in January.

The payment relates to Everton’s breach of profit and sustainability rules in 2021-22, which was found to have affected Burnley’s chances of avoiding relegation. The Burnley board said it had not set aside money for a possible repayment because the appeal’s outcome could not be reasonably determined. The amount at stake ranges from nothing to the full award.

Without the Everton compensation, Burnley’s 2025-26 loss would have been £47.8m, a club record, despite revenues reaching an all-time high of £144.5m. The accounts also include £77.7m paid to Burnley by Velocity Capital, the holding company that owed the club money used in its takeover. The payment, funded by the ownership group, helped reduce debt linked to the acquisition.

Burnley’s debt fell to £62.9m, down by more than half from the previous year. Bank loans declined from £105m to £70.1m, while debt factoring against future transfer instalments dropped from £37m to £16.1m. However, £24.2m of bank loans is due in January and a further £21.6m next August. The club said it was negotiating to refinance and increase its facilities, warning that it would need additional funding if no agreement is reached.

The accounts’ improvement also reflects Premier League income, but football finance professor Kieran Maguire said Burnley was still losing more than £1m a week on an underlying basis, with player sales and the Everton settlement helping reduce the reported loss. He said the club continued to face challenges despite the benefits of top-flight broadcasting revenue.

Burnley are in the Championship relegation zone after winning once in their opening 14 games, and the club’s 2026-27 accounts will cover a season outside the Premier League. They are expected to include about £38m from player sales and £48m in parachute payments. The accounts warned that uncertainties, including the outcome of Everton’s appeal, could cast significant doubt on Burnley’s ability to continue as a going concern.

Sources: BBC Sport.