Burnley report £9m loss with £38.8m Everton compensation under appeal

Burnley have reported a £9m loss for the 2025-26 financial year, with their accounts including a £38.8m compensation payment from Everton that remains subject to appeal. BBC Sport reported that the appeal is expected to be heard in January. Without the award, Burnley’s loss would have been £47.8m, the largest in the club’s history.

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The compensation relates to Everton’s breach of profit and sustainability rules in 2021-22, which was found to have affected Burnley’s prospects of avoiding relegation. The accounts contain no provision for repayment following the appeal. The board said the outcome could not reasonably be determined or measured, with the potential repayment ranging from nothing to the full award.

Burnley recorded revenue of £144.5m for 2025-26, a club high, according to the BBC’s examination of the accounts. The £9m loss compares with annual losses of between £24m and £29m over the preceding three seasons. The latest figures also include a £77.7m payment from holding company Velocity Capital, funded through investment by the ownership group, alongside the financial benefits of Premier League participation.

Borrowing figures showed reductions in several areas. Bank loans fell from £105m to £70.1m, while borrowing against future transfer instalments dropped from £37m to £16.1m. Those improvements do not remove upcoming repayment obligations: £24.2m of bank loans falls due in January and another £21.6m in August. The accounts say negotiations are taking place to refinance and expand the facilities, with additional owner financing needed if agreement is not reached.

The next reporting period covers a Championship season, with lower revenues and no repeat of the Everton compensation payment. BBC Sport reported that the 2026-27 accounts would include approximately £38m in player sales and £48m in parachute payments. The accounts identified the compensation appeal among circumstances that could create significant doubt about the club’s ability to continue as a going concern.

On the pitch, Burnley have won once in their opening 14 Championship matches and occupy a relegation place. New manager Fabio Celestini has not won either of his first two games in charge. Those results leave the club facing sporting difficulties alongside the unresolved appeal and approaching loan repayments.