STAN Ternent told the court that he agreed to co-write his autobiography "Stan The Man" to make money for the club following the collapse of a lucrative TV deal.
The court was told the ex-Burnley boss worked alongside Radio Lancashire presenter Tony Livesey, then Daily Sport editor in chief, to produce the top selling book.
Jurors heard how he agreed to take a 50 per cent pay reduction and write the "entertaining" book to help prevent the club from going into administration.
He said after the TV company Carlton went bust, it left football league clubs with a shortfall, in excess of £5million over two years.
Burnley had committed to contracts and had to find other ways of raising revenue, he said.
Mr Ternent said: "The chairman told me there was a possibility of the club going into administration.
"He asked me to take a wage reduction along with Sam Ellis (his assistant) which we both did."
He said the club was losing £50,000 a week so the Gawthorpe Trust Fund was set up to help pay for a revamp of training ground.
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