Payment Terms

Late payments ring alarm bells for Burnley’s financial situation

EXCLUSIVE: Late payments raise alarm bells for Burnley with fears TV funds and player sales will have to fund their £170m US takeover as new owners ALK Capital struggle to find financing investments

  • Burnley owners’ late payment sparks fears over club finances
  • The payments are due to the ex-directors and are necessary to complete their takeover
  • The Clarets sold striker Chris Wood to Newcastle for £25million earlier in January
  • ALK Capital declined to answer Sportsmail questions about payment schedule











Burnley owners have delayed payments due to former directors who are required to complete their takeover, sparking fresh fears over the club’s financial situation.

sports mail learned that ALK Capital had renegotiated the payment schedule for its £170m takeover, with fees worth tens of millions due to former owners Mike Garlick, John Banaszkiewicz and five other small shareholders who were to be paid last year now postponed until April.

Sources have revealed payments have been delayed to give ALK time to secure more investment, which has largely proved elusive since agreeing to buy 84% of Burnley 12 months ago .

Burnley owners ALK Capital have delayed payments due to former directors who are required to complete their takeover

Another source pointed out that the revised schedule would postpone payments into the next financial year, potentially allowing owners to defer millions in taxes.

ALK declined to explain its reasons, but it gives the owners a chance to find other income. A huge television rights fee is due at the club this month, for example, or Burnley could raise additional funds in this transfer window. They have already sold Chris Wood to Newcastle for £25million.

Burnley fans would be alarmed that the takeover would be funded by TV payments and player sales, despite it fitting an ALK ownership model.

The Delaware-based investment firm reached an unusual takeover deal last January, largely funded by debt and the club’s own resources. ALK initially invested just £15m of their own money, with the rest of the funds coming from a £60m loan and Burnley’s own bank account.

Burnley sold striker Chris Wood to rivals Newcastle in a £25million transfer earlier this month

Burnley sold striker Chris Wood to rivals Newcastle in a £25million transfer earlier this month

The initial payment to Garlick, Banaszkiewicz and Co was around £102million, with the remainder to be paid in three instalments. The club reverts to previous owners if payments are missed, although the revised schedule has been agreed by all parties.

ALK found Burnley a tough sell given the club’s limited commercial influence. The chances of bottom-ranked Burnley losing their Premier League status make the task of attracting investors even more difficult.

ALK refused to answer Sportsmail’s questions about the payment schedule, other than insisting that all parties agree and abide by the terms of the sale.

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