Burnley FC crisis deepens as parent company is threatened with liquidation
Freefalling Burnley FC’s worries have deepened after the club’s parent company, Velocity Capital (UK) Holdings, received a compulsory strike-off notice. The Clarets, who were relegated from the Premier League last season, are in the bottom three of the Championship, with just one win from their first 12 games, and currently without a permanent manager. The [...]
Burnley FC's crisis has worsened as the club's parent company, Velocity Capital (UK) Holdings, faces the threat of liquidation. The Lancashire-based football team, relegated last season from the Premier League, currently sits in the bottom three of the Championship, having won only one game from their first 12 matches and has not appointed a permanent manager. Moreover, the club is grappling with a significant £142 million debt, a substantial portion of which is owed to various external lenders.
Companies House, the official record-keeping agency for England and Wales, has issued an urgent warning to Velocity Capital concerning overdue accounts, which are two years behind schedule. If the issue is not resolved within a two-month period, Velocity Capital could be forced into dissolution, with its assets transferred to the Crown. This is not the first time Velocity Capital has received a strike-off notice; a similar warning was issued in February of last year, and the company resolved the issue within a month.
The delay in addressing the issue may be attributed to Burnley's complex ownership structure, comprising multiple corporate vehicles, and the financial obligations between them, stemming from the club's 2020 takeover. Auditors have emphasized the critical importance of the receipts and financial flows between Velocity Capital and the club in determining the club's status as a viable entity.
The current turmoil at Burnley is further compounded by the recent dismissal of their Belgian manager, Nicky Hayden, following a loss to Lincoln City. The club has now appointed Diego Lopez, a Spaniard previously associated with Italian side Genoa, as their new sporting director. Burnley also recently severed ties with their main sponsor, the trading platform Finotive, after the company failed to meet payment deadlines just weeks before the new season commenced. This led to the club's replacement of Finotive with Vertu Motors as their front-of-shirt partner.
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