The Clarets received a £65m loan with American finance company MSD Holdings, a "significant proportion" of which now has to be repaid by the club.

"It's a transition period and it's about how we get there," Kompany told BBC Radio Lancashire.

"The ambition as you come down is always to go back up but the reality is that, if it doesn't happen, I think we're in a very calm position because we know what to do with the debt and we know how to create value.

"We know how to grow the club."

Kompany's first Championship game in charge will be at Huddersfield Town in the opening match of the season on Friday, 29 July.

Captain Ben Mee and goalkeeper Nick Pope have left the club this summer, with James Tarkowski in talks with Everton, and Kompany is realistic about striking a balance between selling players and keeping a core squad to challenge for promotion.

"It's an experienced squad and if we are to turn a financial corner, I think it's important to have balance in the squad and mix in players who grow in value and exciting players as well," he added.

"Then a mix between the players that hold that culture together with what has made Burnley special over the years."