Burnley's US takeover spells trouble, club faces debt estimated at £90m: Report

Premier League outfit Burnley were in high spirits as they defeated defending champions Liverpool recently. Sean Dyche has been striving hard to ensure his team maintain a massive point-difference to stay away from the relegation zone. But the environment at Turf Moor has been nothing short of spelling trouble, with a financial crisis now hovering at the club. The club is in a massive debt following the takeover which was estimated at £170 million after the new owners used the club's resources to complete the deal.

Also Read | Jurgen Klopp feels Liverpool's upset loss to Burnley can revive their EPL fortunes

Burnley's US takeover comes under scanner 

Burnley's new chairman Alan Pace has been quite vocal of Sean Dyche's plans and his effort to continue playing in the Premier League. But he is yet to come clear on his intentions to buy the club from its local owners. Outgoing chairman Mike Garlick until recently owned 49.24% of the shares while John Banaszkiewicz had 28.2%.

In a response to The Guardian, Pace has refused to clarify how he will be able to pay the outgoing shareholders of the club. Pace, who heads the US consortium ALK Capital, however, maintains that he has a plan and wishes to invest new money to maintain financial sustainability. 

Also Read | Jurgen Klopp dejected as Premier League winners Liverpool suffer upset loss to Burnley

Burnley finances used to pay shareholders 

However, the report claims that the payments of the outgoing owners have been financed from a loan amount estimated at £60 million taken from MSD UK Holdings. And the loan has been sanctioned like a mortgage of Turf Moor and the club, meaning that the outfit will have to pay the loan's principal amount and the interest all by itself. 

Earlier reports had claimed that the club's financial resources were used to pay for the purchase of the shares. And The Guardian confirms these reports, putting the figure between £30 million to £40 million on the club's revenue. Interestingly, the club had chalked out an impressive financial plan ever since their promotion to the Premier League in 2016. 

Also Read | Jurgen Klopp, Sean Dyche involved in HEATED half-time exchange as Burnley end Anfield run

Burnley debt estimated at  £90 million 

The most recently available official data from Burnley, dating back to June 2019 suggests that the club had no borrowings with £42 million in the bank. This simply suggests that the club are now in a debt estimated at £90 million just for ALK to complete the Burnley takeover.

Also Read | Gary Neville apologises after disastrous commentary stint during Burnley vs Man United

Image courtesy: Burnley Twitter