Everton compensation cuts Burnley’s reported loss by £38.8m

Burnley’s £9m loss for 2025-26 would have been a record £47.8m without the £38.8m compensation award from Everton, according to the club’s latest accounts. The payout helped reduce Burnley’s reported debt, but Everton are appealing and the club says the award may have to be repaid in full.

The compensation was granted after Everton’s breach of Premier League financial rules in 2021-22 was found to have affected Burnley’s chances of avoiding relegation. The appeal is expected to be heard in January. Burnley’s board says its outcome cannot be reasonably determined or measured, and has made no provision for repayment in the accounts.

Burnley also received £77.7m from its ownership group, clearing most of an amount owed to the club by holding company Velocity Capital. The payment and Everton award helped cut borrowings from £142.3m in 2024-25 to £86.2m in 2025-26. The club reported £23.3m in cash and revenue of £144.5m, a record for Burnley.

But without the Everton money, the club would have posted its largest-ever loss despite those record revenues. Football finance professor Kieran Maguire said Burnley was still losing more than £1m a week, even with Premier League income and player sales.

The accounts show further pressures ahead. Burnley owes £24.2m on bank loans due in January and another £21.6m due next August. The club is negotiating to refinance and increase its facilities; its accounts say the owners would need to provide additional finance if an agreement is not reached.

Burnley are also due to return to the Championship in 2026-27, with lower revenues and no Everton settlement. The club expects around £38m from player sales and £48m in parachute payments, but says the compensation appeal and other risks could cast significant doubt on its ability to continue as a going concern.

On the pitch, Burnley have won once in 14 Championship matches and are in the relegation zone, four points from safety. The accounts’ improved headline figures therefore depend in part on a disputed award, while the club faces lower income and loan repayments in the months ahead.