Luton Town has announced the club’s financial statements for the year ended 30th June 2024.
The accounts show both record turnover and record profits, as a result of being promoted to the Premier League for the first time. It is important to note, that due to on-going strategic investment and the way in which capital expenditure is accounted for, the £48m operating profit is not excess cash, indeed the club’s bank balance was marginally lower at the end of June 2024, than it was one year previously.
All profits have been reinvested or earmarked to support the club’s long term ambitions. The club funded the Bobbers Stand redevelopment to accommodate more fans and meet broadcast and media requirements, upgrades to the training facility at The Brache, new office space for back office staff and funds have been ring-fenced for longer term investments in the academy upgrade and, primarily, to support the new stadium at Power Court.
The club also spent over £25m on player acquisitions to build a squad that would be competitive in the Premier League, paid out promotion bonuses to players, staff and shareholders relating to the 2022/23 season and made early repayment of the EFL COVID loan. For full transparency, it should be noted that no dividends have been paid to directors from the club’s profits.
Costs increased dramatically as the club grew to support the demands of the Premier League, with squad costs the largest contributing factor. Despite this, the wages to turnover ratio dropped significantly illustrating the club’s continued commitment to a sustainable business model and mitigating the financial risk of relegation, which was confirmed at the end of the 2023/24 season, despite maintaining a competitive challenge for survival throughout the season.
During the year Mike Herrick resigned as a director and sold his shares to an existing shareholder, Rob Stringer, so there was no change to the club’s equity position.
A summary of results is provided below:
2024 (£'000) | 2023 (£'000) | |
Turnover | 132,321 | 18,427 |
Operating Costs | (84,881) | (39,450) |
Other Operating income | 225 | 14 |
Profit/(Loss) before player trading | 47,666 | (21,009) |
Player trading | 1,216 | 4,716 |
Operating Profit/(Loss) | 48,883 | (16,294) |
Net book value of intangible assets (£’000) | 22,293 | 7,886 |
Average league attendance | 11,276 | 9,856 |
All-staff wages to turnover ratio | 43% | 150% |
Click here to view the full accounts available on Companies House.
