The cost of Burnley's promotion to the Premier League resulted in an £8.9million loss last season but the extra expenditure has paid off as a year in the top flight will wipe out that deficit, according to chairman Barry Kilby.

Burnley actually made a loss, before tax, of £11.7million in the year ending June 20. Much of that was as a result of increased spending to improve the squad and then huge performance bonuses kicking in once promotion was secured.

However, the financial rewards of being in the Premier League mean the club are still on a sound financial footing, with Kilby saying: "Promotion was gained at a cost in the financial year. However, the increase in turnover from being in the Premier League this season should more than compensate for the losses incurred over the past few years."

He added: "I expect to report a significant profit for this financial year to bring our balance sheet back into a healthy position."

Burnley enjoyed a 47% increase in match-related income the previous year, helped mainly by significant progress in both the Carling and FA Cups and the play-off final at Wembley.

Off the pitch the success of Owen Coyle's side ensured commercial and retail income also increased significantly.

"To achieve success, we invested in the playing squad which increased squad and amortisation costs substantially and, once success was gained, very significant success-related bonuses were triggered which have further inflated payroll costs and interest charges," said Burnley's business review statement.

"As a result of these costs, and despite success on the field, our accounts show an operating loss of £8.9m and a loss before taxation of £11.7m."

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