That Jack Gaughan report in the Daily MAil yesterday made me think of this - from Offthepitch.com
Amazing European qualification for Burnley last year - but financially it was bad business
8 May 2019 6:39 AM
- Burnley paid out £20 million in bonuses following Europa League qualification.
- Europa League revenues remarkable lower than the bonus expenses.
- Also, a dip in form - maybe due to a hard summer with qualification matches in Europa League - cost the club in the league, meaning decreasing league merit payment.
ALEX MILLER
contact@offthepitch.com
Burnley’s fairy-tale qualification for the Europa League cost the club £20 million.
The club’s wage bill grew by £20 million in 2017/18 due to last season’s seventh-place finish and qualification for the Europa League.
According to the club’s latest accounts:
“Wages grew from £61 million to £81 million as a result of our determination to be more competitive in the market, coupled with increased bonuses for both players and coaching staff due to our 7th place finish.”
Failed to reach group stage
Sources close to the club have revealed to offthepitch.com that the wage bill for this season (2018/19) will return towards the wage bill of 2016/17.
Europa League qualification may have indirectly cost the club a further £15.5 million.
They failed to reach the group stage after being knocked out by Olympiakos in the play-off round elimination.
Participation in this season’s tournament appeared to hamper Burnley’s early season form.
The club played in three rounds of the competition against Aberdeen, Istanbul Basaksehir and Olympiakos. They failed to reach the group stage after being knocked out by Olympiakos in the play-off round elimination.
Burnley’s first Europa League game took place on 26th July and the club had already played six Europa League matches before the end of August.
A fall of eight places
In the Premier League, The Clarets picked up just one point from their first four games, several of which were played within days of their European matches.
Sean Dyche’s team went on to pick up just 12 points from their first 19 games, before turning their season around in the second half of the campaign.
The club’s points tally since the turn of 2019 has been in line with last season.
Burnley are likely to finish 15th in the league this season - a fall of eight places compared to 2017/18, a fall that will see a substantial reduction in their Premier League merit payment.
Last season, Burnley earned £121.5 million in Premier League payments.
Boosting matchday revenues
Within that amount, their merit payment for finishing seventh came to £27 million. By comparison, Brighton earned £11.5 million for finishing 15th.
Similar Premier League payments for 2018/19 would see Burnley receive a £15.5 million dip in their merit payment.
Qualifying for the Europa League gave the club three additional home games this season, which boosted matchday revenues.
A look at Burnley’s matchday income from the latest club accounts offers a strong indication of the likely revenues the club will have earned during their Europa League adventure.
According to official UEFA figures, Burnley will have earned €260,000 (£223,000) for appearing in the second qualifying round, €280,000 (£241,000) for appearing in the third qualifying round, and €300,000 (£258,000) for appearing in the play-off round elimination.
Matchday income in 2017/18 came to £8.2 million from 22 home league and cup games - an average income of £373,000 per game.
Evident in next years accounts
With ticket prices frozen this season, the three home games in the Europa League may have earned the club £1.1 million from ticket sales and catering.
The club will also collect prize money from UEFA.
According to official UEFA figures, Burnley will have earned €260,000 (£223,000) for appearing in the second qualifying round, €280,000 (£241,000) for appearing in the third qualifying round, and €300,000 (£258,000) for appearing in the play-off round elimination.
The three rounds will have generated a combined total of €840,000 (£722,000) in prize money for the club’s coffers, as well as increases from sponsors relating to European qualification. Sponsorship revenue increases will be evident in the club’s next set of accounts.
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and this is how OffthePitch.com reported the next set of accounts
Financial Report: Burnley's profitability falls on lack of player sales
7 April 2020 1:43 PM
- Having recorded a large profit the season before, Burnley last season didn't manage to sell big, meaning their pre-tax profit fell by more than £40 million.
- The club's wage bill rose by £5 million as they increased their number of employees by a third.
- Burnley expect to lose £50 million if the season doesn't finish but have said they will not be furloughing staff.
EMIL GJERDING NIELSON
nielson@offthepitch.com
Burnley's pre-tax profit fell by £40.1 million to £5 million last season due to no significant player sales, but the club managed to keep their wage bill among the lowest in the league as they competed in their fourth consecutive season in the Premier League.
Having secured a surprising seventh place in 2017/18, last season saw Burnley compete in Europe for the first time in over 50 years, though it was a brief spell which didn't see them qualify for the group stages of the Europa League. Domestically, after a poor start, Burnley ended in 15th place – but that was enough to secure another season in the English top flight and crucial prize money.
Owing to that drop in placements, Burnley's turnover fell by £2 million to £137 million, despite managing to increase their commercial income by £4.6 million to £16.5 million.
Hiring explosion
During the season, Burnley increased their number of employees by a third – from 184 to 255 – likely to help ensure future participation in the Premier League does not come under threat.
"We are confident that this increased investment will slowly but surely develop our ability to identify and sign players that can improve our first team squad, whilst at the same time helping to maintain our financial sustainability as a club for generations to come," said Burnley's chairman, Mike Garlick, in the report.
In accordance with the rise in number of employees, Burnley's wage bill rose by £5 million to £86.6 million. That is well below the Premier League average of £140.8 million in the 2017/18 season and equates to a wages-to-turnover ratio of 63.2.
Amortisation rose from £27.8 million to £37.5 million and the club made a profit on player sales of £7 million. That was significantly lower than the season before, in which they sold Andre Gray and Michael Keane and made a profit of £30.7 million.
Potential £50 million shortfall
Burnley now, as most others do, face a significant challenge as the coronavirus pandemic continues to disrupt major industries.
The club last week said they could lose up to £50 million if the season is cancelled now - £5 million from missing matchday income and the remaining from missing broadcasting income.
"It’s now not just about Burnley or any other individual club anymore, it’s about the whole football ecosystem from the Premier League downwards and all the other businesses and communities that feed from that ecosystem," Garlick said at the time.
Some clubs have opted to furlough staff in order to make use of the government's coronavirus job retention scheme, but the chairman told the Daily Mail Burnley won't be pursuing such measures. He also said the club would not impose wage reductions on players or other staff without their accept.