Alan Pace quizzed on Burnley finances, club strategy and CEO departure

Burnley’s ownership group remains “comfortable” with the club’s ability to meet its future financial commitments.

That’s according to chairman Alan Pace, responding to concerns raised by supporters during last week’s Fan Advisory Board (FAB) meeting.

Fans have long shared fears about what could happen to the Clarets should they fail to return to the Premier League, as a result of ALK Capital’s 2020 leveraged buyout and the sizable levels of debt.

Those fears have only intensified at the start of the season, with Nicky Hayen’s side left rooted to the bottom of the Championship table and without a win to their name from their first eight games.

Attempting to allay those concerns, Pace said he was “unequivocal” that the club remained financially secure and was prepared for a variety of future scenarios.

While admitting further borrowing may occur, he told supporters in attendance on Wednesday, September 16, that more than £40m of inter-company debt had already been repaid.

Pace addressed a number of pre-submitted questions from FAB members covering the ownership’s strategy, club finances, football operations, recruitment and squad planning, while those in attendance also had the opportunity to ask any follow-up queries.

Here’s a summary of the main points that were discussed:

Anger over poor start to the season

Alan began by acknowledging the frustrations currently being felt by supporters and stated that he understood many of those concerns. He explained that, as both the club chairman and a resident within the local community, he is acutely aware of supporter sentiment and the disappointment surrounding recent results and wider issues being discussed by supporters. He stressed that he remains committed to engaging directly with fans, being available to answer questions and discussing concerns openly through forums such as the Fan Advisory Board.

Club finances and ownership strategy

A substantial part of Alan's update focused on the club's financial position, ownership model and long-term strategy.

Alan explained that Burnley FC's ambition has always been to establish itself as a competitive Premier League club and that achieving that objective requires significant investment. He noted that the financial demands of modern football continue to increase and that clubs seeking to compete consistently at Premier League level must often operate differently to what many people may consider normal financial practice in everyday life or business.

Alan reiterated that the acquisition of Burnley FC was completed using a leveraged model and stated that ownership has never sought to hide the fact that debt forms part of the club's financial structure. He explained that borrowing has been used as a tool to support investment and growth and remains common practice across modern football. Whilst recognising that some supporters may disagree with that approach, Alan stressed that ownership remains comfortable with the club's ability to manage its financial commitments responsibly.

He explained that one of the common misconceptions around football finances is that published accounts often reflect decisions, revenues and costs from many months earlier rather than the club's current financial position. Alan noted that football finances fluctuate significantly depending on whether a club is operating in the Premier League or Championship, with substantial differences in revenues, investment requirements and debt repayment obligations.

Alan highlighted that significant investment was required following ALK's acquisition, particularly in relation to the playing squad, and explained that ownership chose to invest in building a team capable of competing at the level required to achieve the club's ambitions. He stated that the club has consistently sought to balance investment, competitiveness and long-term sustainability.

Addressing supporter concerns regarding debt, Alan confirmed that inter-company debt continues to reduce and will continue to reduce significantly over time. He explained that forthcoming financial accounts would provide supporters with a clearer and more up-to-date understanding of the club's financial position than has previously been available through historic accounts.

Alan advised that more than £40m of inter-company debt had already been repaid and stated that supporters would see further evidence of this progress when the next accounts are published.

He noted that financial cycles within football often involve periods of repayment followed by periods of reinvestment, depending on circumstances and opportunities available to the club.

Alan also explained that a future return to the Premier League could create opportunities for further investment and growth.

He acknowledged that borrowing may continue to form part of the club's financial strategy where ownership believes it is appropriate to do so and where it supports the club's ambitions. He stressed that while supporters may not always agree with every aspect of the financial strategy, ownership remains confident that a clear long-term plan is in place and that decisions continue to be made with the best interests of Burnley FC in mind.

Supporter trust and confidence

Several questions centred around supporter trust and confidence in ownership.

Alan acknowledged that confidence has been impacted by recent events and accepted that supporters have understandable concerns. He reiterated that he views Burnley FC as a long-term commitment rather than a short-term investment and emphasised that ownership remains fully committed to the club's success.

He spoke passionately about his connection to Burnley and the wider community, stating that he views the club, its staff, players and supporters as an extended family. Alan stressed that he would never knowingly take decisions that he believed would harm the long-term future of Burnley FC and explained that all major decisions are taken with the intention of strengthening the club.

Whilst recognising that supporters may not always agree with those decisions, Alan stated that ownership's ambition has never changed and that Burnley FC remains committed to competing at the highest level possible.

Alan also discussed expectations surrounding the current playing squad and noted that internal performance analysis suggests the team should be performing significantly higher than current results indicate. He acknowledged the frustration this creates for supporters and ownership alike and reiterated that staff and players are working to improve performances.

Lessons learned during ALK ownership

When asked what lessons ownership had learned during almost six years at the club, Alan identified three key areas where mistakes had been made and where lessons had been learned:

• Sporting structure and football operations

• Succession planning and managerial continuity

• Recruitment and player development

Alan acknowledged that managerial succession could have been handled more effectively at certain stages and stated that creating a stronger football structure remains a key priority moving forward.

He also highlighted the need for stronger pathways between academy, development and first-team football, alongside continued improvements to recruitment processes across the club.

Sporting structure and recruitment

Further discussion focused on the evolution of Burnley's sporting structure.

Alan explained that the club continues to review how football operations are organised in order to create greater consistency and continuity regardless of coaching changes. He indicated that further improvements are planned and highlighted recruitment and player development as areas of continued focus. He also acknowledged that attracting top-level football staff remains highly competitive and that the club continues to work actively on strengthening its overall football operation.

Executive leadership changes

Questions were raised regarding the departure of former chief executive officer James Holroyd.

Alan explained that when Burnley appoints senior executives, the intention is always for those appointments to become long-term relationships. However, following discussions between both parties, it became clear that the arrangement was not progressing as either side had hoped. He described the outcome as a mutual decision and stressed that there had never been any intention for the appointment to be a short-term one.

Burnley Football Club can confirm that James Holroyd has decided to step down as chief executive officer to pursue a new challenge. James will remain closely involved with Burnley FC in the Community going forward.

Financial and operational risks

Supporters also asked what ownership considers to be the greatest risks currently facing the club.

Alan explained that the most significant challenge remains returning to and sustaining Premier League status. He noted that once parachute payments reduce, maintaining a squad capable of competing for promotion becomes increasingly difficult without access to Premier League revenues.

He explained that the principal risks facing the club relate to maintaining a competitive squad whilst operating sustainably and ensuring sufficient funding remains available should promotion not be achieved within the desired timeframe.

Alan outlined a number of mechanisms available to mitigate those risks, including continued investment, access to funding facilities, additional equity where required, player trading and the growth of commercial revenues. He stressed that Burnley's objective remains to compete for promotion whilst maintaining a financially sustainable model and protecting the club's long-term future.

Squad planning and recruitment

Several questions focused on whether the club accepted that the squad appeared unbalanced in certain areas following the summer transfer window.

Alan accepted that certain areas of the squad were not ideally balanced and acknowledged that this remains a focus for future planning. He explained that squad construction is influenced by a wide range of factors including managerial preferences, player decisions, injuries, timing and market opportunities. He noted that changing managers can present additional challenges to long-term squad planning, as different coaches naturally require different player profiles and characteristics.

He stressed that player transfers involve multiple parties, including players, agents and clubs, making outcomes difficult to control entirely. He recognises supporter frustrations; he stated that football and recruitment staff had worked to prepare alternative solutions once the situation became clear.

Club stability

Members asked whether Burnley FC would remain secure should the club spend a prolonged period outside the Premier League.

Alan responded unequivocally that Burnley FC remains financially secure and prepared for a variety of future scenarios. He reassured members that ownership remains fully committed to the club regardless of divisional status and stated that he remains comfortable assuring supporters that Burnley FC remains stable, secure and supported for the long term.

Club growth and external opportunities

A member raised reports linking the ownership group with football opportunities outside England [Mexican side Club Leon].

The chairman explained that ownership is regularly approached regarding football investment opportunities and continues to assess a variety of projects across the game. However, he confirmed that Burnley FC remains the ownership group's primary focus and that no active opportunities are currently being pursued.