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Burnley withdraw £12.5million loan to cover Chris Wood Newcastle United transfer amid financial uncertainty

Loan Scams

Burnley withdraw £12.5million loan to cover Chris Wood Newcastle United transfer amid financial uncertainty

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Burnley have received a £12.5million loan from Australian broker Macquarie Bank to cover half of Chris Wood’s transfer fee, as reported by our sister title LancsLive. Newcastle United activated a £25million release clause to lure the striker to St James’ Park in January.

However, half of the fee is not expected until February next year and the Clarets have opted to take the money now – despite having to pay interest. Spreading out transfer fees over instalments is common practice in football and this news should be of no concern for Toon supporters. The only difference from the Magpies’ end is the Wood payment will now be paid to Macquarie Bank rather than Burnley.

The Clarets’ decision to grab fast cash fires an ominous warning to their fans should they be relegated from the Premier League. Financial uncertainty has plagued Turf Moor in recent weeks after reports emerged that a £65million loan until 2025 will be recalled early if the club goes down.

Chairman Alan Pace insists the balance books are sound but Burnley’s frugal approach in the transfer market has been alarming. The Clarets average just £10million net spend per season on new arrivals in the last five years and their 2021 takeover raised eyebrows.

Similar to the leveraged buyout of Manchester United by the Glazer family, ALK Capital spent £60million of Burnley’s own money to complete the deal, with the club’s revenue used to pay the loan back. Dropping to the Championship could prove…

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