By Turftalker
November 27 2004

With news that Burnley FC look likely to sell their ground and training facilities to a new company set up by Chairman Barry Kilby, the Longside here publishes the official press release that announced the plans.

Chairman Secures Clarets Future

-

Barry Kilby has stepped in to ensure that Burnley Football Club can look to the future from a more secure financial base.

Kilby, Chairman of the club since 1998, will own the majority stake in a new company that has negotiated a sale and leaseback deal on Turf Moor and Gawthorpe (the club’s training ground).

The Football Club will benefit from an immediate cash injection of £3 million to allow complete re-payment of all bank debts that have shackled the club’s development over the last few years and almost contributed to the club considering administration.

The deal consists of a sale of Turf Moor and Gawthorpe to Kilby’s company and a leaseback to the Football Club for a period of 99 years. 

The buy-back clause means that the current or future Directors of the club will have the opportunity to re-assume ownership of Turf Moor and Gawthorpe when funds are available.

John Sullivan, recently appointed to the Board of Burnley FC, is another major shareholder in the company that has negotiated the details of this vital financial package that will protect the club.

“This move enables the club to avoid the crippling effect of capital repayments that were due to commence under the creditors agreement brokered last year,” explained Mr Kilby.

“It gives the club the chance to move forward with confidence and a fighting chance to compete with the much larger ‘Championship’ clubs.

“Hopefully when the club is stronger it can trigger the buy back clause and resume ownership.”

Details of the sale and leaseback of Turf Moor and Gawthorpe will be discussed and voted on at the Club’s AGM on December 13^th.

- Ends -