Burnley financial concerns as owners delay payments to former directors

Concerns are emerging at Burnley over the management of owners ALK Capital.

The Daily Mail says Burnley’s owners have delayed making payments owed to former directors which are required to complete their takeover, raising new fears about the club’s financial position.

ALK Capital have renegotiated the payment schedule of their £170million takeover, with fees worth tens of millions owed to former owners Mike Garlick, John Banaszkiewicz and five other smaller shareholders that were due to be paid last year now deferred until April.

Sources have revealed that payments have been delayed to give ALK time to secure more investment which has largely proved elusive since they agreed to buy 84 per cent of Burnley 12 months ago.

Another source pointed out that the revised schedule will take the payments into the next financial year, potentially enabling the owners to defer millions in tax.

ALK declined to explain their reasons, but it gives the owners a chance to find other income. A huge TV rights fee is due to the club this month, for example, or Burnley could raise further funds in this transfer window. They have already sold Chris Wood to Newcastle for £25m.

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