Burnley Football Club Return To Profit
Thu 22nd Nov 2012 | Money & Finance
Burnley Football Club have posted a profit in the latest set of accounts released yesterday.
The accounts, which were issued ahead of the club’s AGM next month, show they made a profit of £3.16million for the year ending 30 June, 2012.
That followed a deficit of £4million for the year 2010/11 and was largely due to the sale of Jay Rodriguez to Southampton.
The club made an operating loss of £4.4 million but the transfer of Rodriguez pushed the Clarets into the black and also allowed the club to re-invest in the current squad headed by new captain Jason Shackell.
Rodriguez’s club record sale also allowed the Clarets to make a transfer profit of £8.5million.
Joint chairmen Mike Garlick and John Banaszkiewicz say in a statement to shareholders: “This player trading remains a cornerstone of how the club balances it books.
“Despite recording an operating loss for the year, the transfer fee we received for Jay Rodriguez meant we were able to convert this loss for the year into a profit and provide the basis for supporting ourselves in 2012/13.
“Looking forward, the reduction in our income in 2012/13 and 2013/14, now that the initial Premier League parachute payment period has ended, and the introduction of the Football League Financial Fair Play Rules mean that we need to continue to plan carefully for the future and act accordingly, to ensure that we operate within the Rule and the income we generate."
The Clarets’ wage bill was reduced by around £2.5million to below £17million but turnover fell by £4million to £23million, largely due to a further reduction in parachute payments from the Premier League and lower attendances.
Further reducing the wage bill remains a key objective but the directors say in their annual report that they remain committed to moving towards a position where the club lives within its means, while providing the manager with the resources he needs to compete successfully in the Championship.
Posted by: Aaron Gourley
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