Alan Pace at a Burnley match
Alan Pace (centre) became Burnley chairman following ALK Capital's takeover of the club in December 2020

If they were to be demoted from the premier league, they would need to pay back a large amount of their loan.

The loan was taken out in December of 2020.

The latest financial accounts for the club were released on July 31, 2021.

The club says it would retain the support of its lenders if it were to be demoted.

Fans will be concerned with the information given the delicate position of the club in the table.

Sean Dyche was sacked as manager of the Clarets on April 16th and the team was stuck in the bottom half of the table.

A run of four matches without a loss under interim boss Mike Jackson has vindicated the decision to take the company over.

With four games to go, the Clarets are up to 16th in the table and two points clear of the bottom club.

The financial state of the town has been debated.

The latest accounts show that the company has taken on over 100 million dollars in debt through two holding companies.

It is outlined in the accounts that the loan attracts 8% annual interest. When the entire sum due is due to be repaid, only interest payments are made.

If the club fails to return to the top flight, there will be a reduction of the loan balance and the repayment date will be moved forward.

The accounts say that the group's reserves are sufficient to allow a significant proportion of the balance to be settled by way of dividends.

There would be a significant reduction in wages and salaries, as well as money from the sale of players, when a club is demoted from the premier league.

The club has 50 million in reserves, down from 80 million last year.

The club said that the lack of fan attendance due to Covid restrictions caused the turnover to fall.

The club recorded a pre-tax loss.

The accounts show that at the end of the reporting period, the company advanced 10 million dollars to afellow group company.

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