BURNLEY manager Owen Coyle is unlikely to be able to spend big this summer, as the club looks to recover another projected £4million loss.

It was thought money from the sale of players, particularly the £1.5m received for Andy Gray from Charlton Athletic in January, would go straight into the Clarets' transfer kitty.

But the board of directors are aiming to get the club on an even keel, as a £4.3m loss in the last financial year looks set to be repeated.

Burnley are determined to stay competitive and are scouring the globe for hidden gems - hence employing former Northern Ireland boss Billy Bingham as a talent spotter, and the proposed partnership with an American United Soccer Leagues team.

However, following recent takeovers at a number of Championship clubs, and with a £13m parachute payment - spread over two years - handed to Derby County, Reading and Birmingham City following relegation from the Premier League, the wealth among the Clarets' competition is increasing.

"The Championship is the fourth best team in the world, so that shows you how competitive it is. And there's some big money being put into our league this time," said chairman Barry Kilby.

"QPR, Wolves and Ipswich have got some big new hitters taking over the clubs and injecting money into them, so we've got to play our cards as smart as we can.

"Players are driving the wages now. After the collapse of the television deal (ITV Digital in 2002) that came down a bit, but it's picking up again."

A lack of definitive transfer activity so far has caused frustration among some supporters, following failed bids for Scunthorpe striker Martin Paterson (£400,000 and £550,000), and offers for Hearts left winger Andrew Driver (£500,000) and Dundee midfielder Kevin McDonald (£250,000) reportedly rejected.

But after the Deloitte and Touche report for the 2006-07 season found that Burnley's wages/turnover ratio stood at 102 per cent - 23 per cent more than the Championship average - the board have explained the reasons behind their softly-softly approach.

"We're competitive on money and salaries, but it's getting harder and harder to get the right quality players at a price that is sustainable," said operational director Brendan Flood.

"Our loss after player sales, Andy Gray and whoever, is getting on for £4m again.

"That means Barry and myself have to find £4m a year after player sales, which isn't really sustainable.

"We want to be in a position where if you put £4m in, you're actually getting two or three new players, rather than propping up a loss.

"There's wages and not enough revenue, and you've got to think how do we get round something that is going to lead to a point where all of us say we can't keep doing this forever'.

"There are key performance indicators in football, where they say your wages should be 75 per cent of turnover, and we're at 102 per cent, the second highest in the Premiership and Championship.

"We're doing our absolute maximum really, without jeopardising the stability of the club.

"When people see a transfer sale in, like Andy Gray, people think that must be £1.5m to spend, but you forget that we're losing £4m after everything.

"We've got to buy smarter, look harder, more flexibly, beyond our league, beyond England; just be better at scouting than we have been, and that's all part of the foundations we're putting in, getting more depth to how we secure players.

"Wages are getting higher, fees are getting higher, and you can't just keep putting money in to feed a loss, you have to think outside the box."

Responding to leaks of failed bids, chairman Barry Kilby added: "We can't stop what other clubs do, people thinking why have you bid so low for players?', we're playing a hand of poker, and the other team may try to get a bigger fee and get an auction going.

"It's early days yet, but it will hot up.

"We know we have a team to build, and when pre-season starts, but going by experience, little happens while players are on a beach, being paid by someone else.

"Those out of contract are seeing what is available, and are still being paid by their clubs.

"If they are owned by a club, they are hawking round to see the best price they can get.

"It's always quiet this time of year, and it could come with a rush."

And that is exactly what Flood is anticipating around the end of the month.

"We'll put our best foot forward at the end of June, early July on certain players, and make decisions then, and they will hopefully be here in time for our trip to the States," he said.

"I do think we probably will see three, four or five (signings) in a week. I think it could be like that.

"The legs are paddling away underneath the water that you can't see, and we're all hopeful, but don't want to raise expectations, as we've been accused of in the past."