Burnley chairman says they will go bust in august

uneasydaz

Well-Known Member
BURNLEY chairman Mike Garlick has warned they will go BUST in August if the football lockdown has not ended by then.

The Clarets boss revealed they stand to lose £50MILLION if the current season is cancelled — and warned other Premier League clubs face losses of as much as £100M.

Garlick said the situation is so dire that his club — one of the best run in the top flight — will be potless later this summer unless the deadly Covid-19 pandemic has eased by then.

He said: “The fact of the matter is, if we don’t finish the season and there isn’t a clear start date for next season, we, as a club, will run out of money by August. That is a fact.

“I can’t speak for other clubs, I don’t know their financial positions.

“All I can speak for us our club and our position.

“That’s why we’re very determined that when of course it is safe to do so, we really want to finish this season.”

Garlick, speaking to Sky Sports News, added: “We voted unanimously to finish the season, so it’s clear everyone wants to get the job done.

It is crystal clear that finishing the season is by far the best outcome for all the Premier League clubs.”

The 20 Prem clubs still hope to complete the campaign, even if that means playing behind closed doors and cramming the remaining fixtures into the spell of a few weeks.

Yet the longer the lockdown goes on so long, the greater the fear they will eventually have to admit defeat and call if off.

That will cost top flight clubs a fortune in lost revenue – especially those without megarich benefactors – plus the possibility of having to repay TV money to rights holders.


In Burnley’s case that means around £5 million in lost revenue from the remaining home games.

Failure to finish the season means it is highly unlikely it could be recouped, owing to the likely prospect of these fixtures being played behind closed doors.

Missing out on cash payments from the Premier League would be a hit of up to £45 million in broadcasting revenue and other items, while for some others it could be double that.

Garlick continued: “It’s a completely unprecedented situation facing us and other Premier League clubs that no-one could have foreseen just a few weeks ago.

“It’s not just about Burnley, it’s the whole football ecosystem from the Premier League downwards and all the other businesses and communities that feed from that ecosystem.

“As a club, fans, staff members and a town, we are all in this together and I’m sure we can get through by sticking together and helping each other in every way possible.

“We all need to do our bit, however small.”

A Burnley statement added: The club is keen to be transparent with supporters, staff and stakeholders.

“It is therefore able to confirm that due to the continued suspension of Premier League games this presents some significant challenges for the football club.

“Burnley FC are set to lose around £5 million in lost revenue from the remaining home games which in the event that the season finishes would be unlikely to be recouped owing to the likely prospect of these fixtures being played behind closed doors.

“In addition, the Clarets face missing out cash payments from the Premier League of up to £45 million in broadcasting revenue and other items if the season is not finished.

“It is believed that other clubs could be looking at up to a £100m shortfall.”

Burnley’s admission comes after yesterday’s stark warning from West Ham vice-chairman Karren Brady in her SunSport column that clubs could be “ruined” by the current crisis.

Urging the PFA to reach an agreement on pay deferals, she said: “Across the country all football clubs’ operations have effectively ceased. There is no matchday revenue, no sale of season tickets for next season, no retail outlets open and online retail businesses have closed as it is not essential work.

“With no date for restarting the league, this is having severe financial implications. Without any revenue — and no games being played — how on earth do we ensure the ongoing business survives? And, take it from me, unless a pay cut is put in place a number of clubs will be ruined
 
I hope they don’t go bust but there has to be a reality here. Thy aren’t a big club. They are a very small club in a big league.

There won’t be but I would hope this brings about a balance back into football.

Last year when spurs played Ajax in the semi final of the UCL and spurs were the bookies favourites it was just another example of the absurdity of modern money ball.
 
With all due respect to clubs the size of Burnley and Bournemouth, this is the problem when the finances of your club are so reliant on the EPL TV payouts.

That money is upwards of 85% of some of these clubs’ income, which is not a sustainable business model.

Obviously this is an unforeseen circumstance but it’s the same when teams go down even with parachute payments.
 
As long as I’ve been on FF I’ve the last 15 years there have always been posters saying that the bubble down there will burst. Never thought it would ever happen but this virus outbreak could change everything.

Then you see how badly affected the likes of Spain and Italy are as well, there is no doubt that will filter down to sport.

Will be interesting to see the makeup of professional football 12 months from now to see how it compares.
 
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They've been coining it in from the EPL for several seasons now. How on earth have they only got money to last till August? That's horrendous mismanagement if true.

Burnley’s latest accounts show a wage bill of £87m.

Turnover was £138m of which £115m was TV money. That’s 83% of their income.

Even if you are taking a slice of that out of the picture teams will struggle badly, quite simply because the wages will still have to be paid and income will be down. Throw in some recent transfer spending and it isn’t a stretch to say some could end up penniless if this goes on long enough.
 
Why do they not simply furlough their entire staff, including players ?

The staff must be prepared to return to work in appropriate condition to work so playera would need to maintain fitness.

Any club that furloughs staff and retains players on any other method should have their application for funds rejected and be forced to bear the brunt.
 
Burnley’s latest accounts show a wage bill of £87m.

Turnover was £138m of which £115m was TV money. That’s 83% of their income.

Even if you are taking a slice of that out of the picture teams will struggle badly, quite simply because the wages will still have to be paid and income will be down. Throw in some recent transfer spending and it isn’t a stretch to say some could end up penniless if this goes on long enough.
It's absolutely insane that a pishy club like Burnley have a wage bill that high.
 
Why do they not simply furlough their entire staff, including players ?

The staff must be prepared to return to work in appropriate condition to work so playera would need to maintain fitness.

Any club that furloughs staff and retains players on any other method should have their application for funds rejected and be forced to bear the brunt.

I'm not sure whether players could choose to leave the club freely if furloughed. Might be a reason why the bigger clubs haven't done it.
 
Burnley’s latest accounts show a wage bill of £87m.

Turnover was £138m of which £115m was TV money. That’s 83% of their income.

Even if you are taking a slice of that out of the picture teams will struggle badly, quite simply because the wages will still have to be paid and income will be down. Throw in some recent transfer spending and it isn’t a stretch to say some could end up penniless if this goes on long enough.

Pretty sure I read that the TV companies won’t pay out if the season doesnt finish. So I’d imagine most EPL and Championship clubs will be similar to those kind of numbers.
 
I'm not sure whether players could choose to leave the club freely if furloughed. Might be a reason why the bigger clubs haven't done it.
Why would that be ?

Players are contracted players but all contracted employees will have a contract of employment stating their salary so the players are no different
 
I feel for the Burnley fans. It’s going to be a worrying, uncertain, time for them. We know what’s it like to come close to losing your club.

I don’t feel anything for the club though. They cared not a jot for the likes of us, Bury, etc. incredible mismanagement.
 
Burnley’s latest accounts show a wage bill of £87m.

Turnover was £138m of which £115m was TV money. That’s 83% of their income.

Even if you are taking a slice of that out of the picture teams will struggle badly, quite simply because the wages will still have to be paid and income will be down. Throw in some recent transfer spending and it isn’t a stretch to say some could end up penniless if this goes on long enough.
& yet we still get this kind of stuff:

Garlick said the situation is so dire that his club — one of the best run in the top flight — will be potless later this summer
 
Absolutely crazy wages in the EPL pretty much every club must be losing millions every week.

The Mancs player wage bill is £6.5 million a week. That’s not even counting non playing stuff and other costs.

The EPL bubble was always going to burst at some point and this might be it.
 
They should get round the table with the TV companies and do a deal that suits everyone.

Then when this is over let’s get back down to earth and start being normal again without stupid money being thrown around. Fuk agents off, charge less to households
in an ideal world.......
 
I hope they don’t go bust but there has to be a reality here. Thy aren’t a big club. They are a very small club in a big league.

There won’t be but I would hope this brings about a balance back into football.

Last year when spurs played Ajax in the semi final of the UCL and spurs were the bookies favourites it was just another example of the absurdity of modern money ball.

Right after knocking Madrid out!
 
Bollocks will they, you just cut your cloth accordingly and if it means you go down the league's the true fans won't give a flying %^*& given what's happening at present
 
Why would that be ?

Players are contracted players but all contracted employees will have a contract of employment stating their salary so the players are no different
The contract would also state the salary I'm pretty sure so unless they were paid that salary then surely the contract is null and void.
Why would that be ?

Players are contracted players but all contracted employees will have a contract of employment stating their salary so the players are no different

Employees on furlough are entitled to take up another job if they wish. Most employees won't as long as their Furlough pay is decent. Footballers are obviously different and them getting £2.5k per month isn't going to keep them
 
I hope they don’t go bust but there has to be a reality here. Thy aren’t a big club. They are a very small club in a big league.

There won’t be but I would hope this brings about a balance back into football.

Last year when spurs played Ajax in the semi final of the UCL and spurs were the bookies favourites it was just another example of the absurdity of modern money ball.
in a sense it doesn't really matter what size you are. if your a big club with a lot of money, your outgoings will be proportionate. you could always offload players, but what other club is going to buy in this current climate?
 
people saying "the bubble has burst" - no it hasn't - the pandemic is effecting every football club in the same way. the "bubble" can only "burst" if for instance TV companies lower their TV revenue and a club goes out of business. completely wrong context.
 
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