Source: Team_Talk
Promotion balances books at Burnley
The cost of the Clarets' rise resulted in an £8.9million loss last season but the extra expenditure has paid off as a year in the top flight will wipe out that deficit, according to chairman Barry Kilby.[LNB]Burnley actually made a loss, before tax, of £11.7million in the year ending June 20.[LNB]Much of that was as a result of increased spending to improve the squad and then huge performance bonuses kicking in once promotion was secured.[LNB]However, the financial rewards of being in the Premier League - achieved via the play-offs last May - mean the club are still on a sound financial footing.[LNB]"Promotion was gained at a cost in the financial year," said Kilby in his annual report to shareholders.[LNB]"However, the increase in turnover from being in the Premier League this season should more than compensate for the losses incurred over the past few years.[LNB]"I expect to report a significant profit for this financial year to bring our balance sheet back into a healthy position."[LNB]Burnley enjoyed a 47% increase in match-related income the previous year, helped mainly by significant progress in both the Carling and FA Cups and the play-off final at Wembley.[LNB]Off the pitch the success of Owen Coyle's side ensured commercial and retail income also increased significantly.[LNB]"To achieve success, we invested in the playing squad which increased squad and amortisation costs substantially and, once success was gained, very significant success-related bonuses were triggered which have further inflated payroll costs and interest charges," said Burnley's business review statement.[LNB]"As a result of these costs, and despite success on the field, our accounts show an operating loss of £8.9m and a loss before taxation of £11.7m."[LNB][LNB] Total Season Points 2009/10 Total season points: Over 36.5 Pts 5/6
