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Burnley saddled with heavy debt from new owners

Burnley have reportedly been loaded with debt from new owners ALK Capital.

The Guardian reports the £170m takeover used the club's own money and loaded it with debt to the tune of £90m.

ALK maintains that its plans are sustainable and it intends to invest new money in the club, but the report says the initial payments to previous majority shareholders Mike Garlick, John Banaszkiewicz and the other sellers have been financed with a loan.

The loan is charged like a mortgage on Turf Moor and the club itself, which will have to repay it from its own revenues, with interest at a rate ALK has not yet publicly stated.

Initial reports that the club's own cash reserves have also been used to pay the selling shareholders were accurate, the Guardian reports. Sources with knowledge of the deal put that figure at between £30m-£40m of the club's money.

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