Burnley's US takeover spells trouble, club faces debt estimated at £90m: Report

Premier League outfit Burnley were in high spirits as y defeated defending champions Liverpool recently. Sean Dyche has been striving hard to ensure his team maintain a massive point-difference to stay away from relegation zone. But environment at Turf Moor has been thing short of spelling trouble, with a financial crisis w hovering at club. club is in a massive debt following takeover which was estimated at £170 million after new owners used club's resources to complete  deal.

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Burnley's US takeover comes under scanner 

Burnley's new chairman Alan Pace has been quite vocal of Sean Dyche's plans and his effort to continue playing in Premier League. But he is yet to come clear on his intentions to buy club from its local owners. Outgoing chairman Mike Garlick until recently owned 49.24% of shares while John Banaszkiewicz had 28.2%.

In a response to Guardian, Pace has refused to clarify how he will be able to pay outgoing shareholders of club. Pace, who heads  US consortium ALK Capital, however, maintains that he has a plan and wishes to invest new money to maintain financial sustainability. 

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Burnley finances used to pay shareholders 

However, report claims that payments of outgoing owners have been financed from a loan amount estimated at £60 million taken from MSD UK Holdings. And loan has been sanctioned like a mortg of Turf Moor and club, meaning that outfit will have to pay loan's principal amount and interest all by itself. 

Earlier reports had claimed that club's financial resources were used to pay for purchase of shares. And Guardian confirms se reports, putting figure between £30 million to £40 million on club's revenue. Interestingly, club had chalked out an impressive financial plan ever since ir promotion to Premier League in 2016. 

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Burnley debt estimated at  £90 million 

most recently available official data from Burnley, dating back to June 2019 suggests that club had borrowings with £42 million in bank. This simply suggests that club are w in a debt estimated at £90 million just for ALK to complete Burnley takeover.

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Im courtesy: Burnley Twitter