Burnley contract says they can repay interest only.on the 65m loan until 2025 at which point capital must start to be repaid.
In the event of relegation however the capital must start to be repaid by a significant amount each season they remain outside the PL.
No actual figures are given but would imagine they are going to need to pay 20m back this season at least or 1 Nick Pope sale etc
Or to put it even more starkly, imagine being relegated and having to still pay for that £65m striker you splashed out on just before relegation! Except in this case you can’t sell the player on - you’re stuck with the debt. And there never was a player.
A big wedge of Burnley’s parachute money is going to go on repaying this debt, meaning their ability to be competitive enough to bounce straight back will be compromised. If the creditors enforce this repayment too robustly, I fear for Burnley’s future.
This is why I get the chills when people keep calling for Lai to go. For all his faults, he didn’t load the club with debt when he bought. Of course, he might now wish he had! But if/when he sells, it’s not stretching imagination to see him selling to some private equity outfit who do secure the purchase price against the club’s assets and future earnings.