Kilby intends to spend

The Turf Moor board believes the club can "do a Watford" and that the financial rewards on offer at the top level of the Nationwide League will put the Clarets on a firm footing in their bid to ultimately challenge for a place in the Premiership.

Kilby feels Burnley can follow Watford's example of elevation to the top-flight from a similar starting point, so the policy of speculating to accumulate will go on.

"If you look at the figures from when Watford went up from Division Two they are very similar to our this year. I feel they are a good role model," he said.

Even under the terms of the existing television deal for Nationwide clubs, Burnley would double their television income to £800,000 on promotion to Division One.

And Watford and their fellow Premiership clubs earn £8 million in revenues from the television companies with the contract due for renewal in a couple of years' time.

Kilby says in his first annual report to the shareholders, who will be asked to accept the accounts at the club's AGM on December 16: "The board have invested a significant proportion of the funds from the rights issue in the first-team squad.

"The recent investment in both players and the stadium has placed a heavy strain on the company's finances, which, combined with a disappointing performance in the first half of the 1998/99 season, resulted in a loss for the year of £1.8 million. "However, the board maintain that this strategy of investment is imperative in order to achieve success on the pitch and the company's sort-term goal of promotion to Division One.

"The financial chasm between the First and the Second Division is growing ever wider and we must make the leap before the distance becomes too wide.

"Without investment, the liklihood of promotion and the subsequent increased revenues are only a remote possibility." The Clarets turnover dipped some £60,000 to £3,670,000 in the financial year ending May 31 this year, due largely to a drop in gate receipts.

And staff costs, including the playing wage bill, transfer fees and signing-on fees during the period which included the purchase of Steve Davis, Micky Mellon, Lenny Johnrose and Paul Crichton, increased by over £300,000 to £2,784,000 to push the trading loss to close to £1 million.

However, as well as financing an on-field improvement, the £3.9 million raised by the club's rights issue also helped reduce the overall debt by £1 million to £3 million.

Kilby said the figures had been as expected and stressed that the Clarets are on a "calculated course."

"For the financial well-being of Burnley, it's important that we get into the bigger revenue streams driven by media income. All the new television money will be concentrated at the top end.

"If we don't get into that company, clubs like Burnley will never be able to support a players' wage-bill of £2 million, unless market conditions change," the chairman added.

Burnley are hoping that the £1 million-worth of shares not taken up under the rights issue will be bought by new investors and all commercial avenues are being rigorously pursued. Kilby stressed that the situation is far from gloomy an,d thanks to the investment made over the past 12 months, Burnley go into tomorrow night's game at Reading in the Second Division play-off places.

"I would also like to acknowledge the great strides made by our team manager Stan Ternent and his staff in turning round our fortunes in a difficult season and giving us justified optimism for the future," Kilby added.

"I would like to thank all those whose collective talents and commitment have given us the platform for success - players, fellow directors, management staff and especially our supporters.

"With their level of ability, dedication and enthusiasm we can only succeed."

Colne Clarets are running transport to the FA Cup third round match at Derby on December 11 picking up from the Morris Dancers at 9.30am and Cafe Claret at 9.45am. For details and bookings contact Alan Beecroft on 01282 864147.

Burnley have been given an extra 500 tickets for Saturday's game at Wigan. They are due to go on sale from 9.15am tomorrow.

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