Burnley’s financial results for 2025-26 were boosted by a £38.8m Everton compensation payment, without which the club would have recorded a £47.8m loss, its largest ever, according to accounts published on Wednesday.
A landmark payment with strings attached
The compensation stems from Everton’s profit and sustainability breach in 2021-22, which was found to have affected Burnley’s chances of staying in the Premier League that season. The payment turned what would have been a record deficit into a £9m loss, a significant improvement on the £24m-£29m losses reported in each of the previous three seasons. But the money is not yet guaranteed: Everton have appealed, with a hearing expected in January.
Burnley’s board stated in the accounts that no provision should be made for the appeal because the outcome cannot be reasonably determined or measured. The club noted the result could range between nothing and the full amount being repayable.
Why the accounts look healthier
The Everton payout was one of three unusual inflows that flattered the 2025-26 figures. The others were £77.7m paid to the club by Velocity Capital, the holding company that had owed Burnley £80.1m from the leveraged buyout, and money from being in the Premier League. Those three sources helped reduce debt and heavy interest costs.
Total borrowings now stand at £62.9m, less than half the £142.3m reported in 2024-25. Bank loans have fallen from £105m to £70.1m, and factored debts, where future transfer instalments are mortgaged for an upfront bank payment, have been cut from £37m to £16.1m. Before the takeover, Burnley were debt free with £41.65m in the bank.
Underlying concerns remain
Kieran Maguire, professor of football finance at the University of Liverpool, said the underlying showed the club was still losing more than £1m a week despite Premier League revenue and the benefits of top-flight status. He added that a more forensic look suggested the underlying issues at Burnley still exist.
The club’s accounts also warned that several factors, including the outcome of the compensation appeal, could cast significant doubt on its ability to continue as a going concern.
What next season might bring
Burnley will play in the Championship in 2026-27, with much lower revenues and no Everton payment. The accounts project around £38m from player sales and £48m in parachute payments, which on the surface appear encouraging. But those figures will not include the compensation and will be set against a Championship cost base.
On the pitch, the is bleaker. Burnley sit in the Championship relegation zone after 14 games, with one win and four points from safety. They recently set a new English league record for the longest run without a home win, a streak that will reach 400 days when Blackburn visit Turf Moor on 22 November. New manager Fabio Celestini, who replaced Scott Parker, has yet to win in two games. Relegation looks more likely than promotion, and Burnley cannot afford to become the third team in successive seasons to drop from the Premier League to League One.
The improved accounts may offer some relief, but the Everton compensation remains central to the club’s financial health. If the appeal succeeds, the changes sharply.
