How landmark Everton compensation prevented Burnley record loss

Burnley have published promising financial results, but under the hood is a payment from Everton which makes the picture look far less positive. Burnley were bought by ALK Capital in December 2020 using loans secured against the club's assets and other external debt Six years ago, Burnley were considered one of the best-run clubs in the country. The Clarets were debt free, with £41.65m cash in the bank, and enjoying their fifth successive season of Premier League football. Now they sit in the Championship relegation zone, with concerns over debt and the way the Clarets were bought by ALK Capital using loans and the club's own money. Fans have been very concerned about what the future holds – although on Wednesday there was some rare positive news in the club's accounts.

BBC Sport takes a closer look at what is going on at Turf Moor. You may be familiar with the term "leverage buyout" after the Glazer family's purchase of Manchester United in 2005. It effectively means that a purchase is carried out using debt secured on the club's assets, its own bank balance and other loans, rather than the equity of the buyer. In Burnley's case, ALK Capital took out a £65m loan secured against the club's assets, such as Turf Moor, and used £37m from the club's own