Club Responds to Modus Administration Loan Issue
Vital Burnley reported recently that Administrators of Brendan Flood's property firm Modus Ventures Ltd were trying to recover £3.7m of loans they claim are owed to the company by Burnley FC.
You can read the background again by linking to this article:
Administrators' Modus Operandi Affects Burnley FC
The local Lancashire Telegraph today reports a response from the Club about the situation.
A spokesman for Burnley FC has reassured fans that the repayment will not affect the club`s financial plans for the future and that any money paid back would have no impact on transfer policy or funds available to manager Owen Coyle.
The spokesman went on to say:
"A formal loan agreement is in place between Modus Ventures Limited and the football club. This was only repayable if the club gained promotion to the Premier League and the club has made financial planning for the repayment of the loan."
The administrators, KMPG have said the monies are expected to be received on August 5, 2009 but the club will not make any comment on the amount of the loan to be repaid nor in what context the loan was made and when it was taken out.
Vital Burnley wish to thank Burnley Football Club for the use of the photograph