BURNLEY FC have reported losses of £4million after their first full season back in the Championship.

The Clarets’ latest set of accounts for the year ending in June, saw the club lose £4,021,000 down from a profit in the previous year of £14.4million.

Figures for the 2010/11 season, which were released yesterday, saw revenues plunge 40 per cent from £45.4million to £27.4million.

Chairman Barry Kilby described relegation as having ‘a consequent affect on financial strength’ but said the club were in a position ‘to give the manager the best resources possible for future success’.

The club’s income consisted of £23.2million in match revenue, which includes television rights and ‘parachute’ payments from the Premier League.

Catering sales rose to £1.5million while commercial and shop sales combined fell by around £1million to £2.6million.

The accounts reveal staff costs have doubled at the club since 2008 with wages only falling by 13 per cent last season.

The club said this was inflated by players’ earning Premier League wages.

The total wage bill for 169 staff, including 95 players, managerial and training staff was £19.4M.

During the year the club boosted cash balances by taking a loan from club director John Banaszkiewicz for £4.4million.

Interest paid on this amount was £292,000.

The club announced an intention in the medium term to eliminate all borrowings, which led to them paying £907,000 in interest during the year.

A statement from directors, said: “The challenge to eliminate borrowings is matched by the introduction of Financial Fair Play regulations under which all teams have to break even.”

The directors also warn that if the club remains in the Championship, revenue will decline considerably over the next three years as parachute funding ends.

Among positive milestones for the club are the commitment of £380,000 to improve facilities at Turf Moor and the Gawthorpe training ground.