A summary of the Trust’s annual financial review meeting with the Club
Trust Chairman Paul Stephens, Vice-Chairman Mark Chapman and Treasurer Les Miller recently met up with club officials Tom Schofield, Chief Financial Officer and Alex Howard, Group Financial Controller for our annual financial review. We discussed the 2024/25 accounts of the football club, 2020 Developments and the holding company. Club Chief Executive Gary Sweet and Chairman David Wilkinson attended as observers.
As well as accessing the statutory accounts filed at Companies House – which everyone can do – the Trust received more detailed non-public pages from the full accounts in advance. This enabled us to prepare our questions and, along with the open and frank approach taken by the club, to achieve full assurance about the accounts. The club encouraged us to challenge and no question was denied.
There are, as you might expect and as is always the case in these reviews, some areas we’re unable to share with you as they are confidential – this includes salaries and contract details for instance – and transfer budgets are commercially sensitive so they’re also not made public. But we were able to address all the Trust’s questions and also some areas where there has been a level of misinformation across some social media – and we hope this summary provides you with much of the information you’ve asked for, as well as an insight into the financial status and workings of the club and its associated companies.
Paul Stephens, Trust Chair:
“Supporters are understandably eager to understand more about the club’s finances and its future, especially with our move to Power Court coming closer and closer – and with the events of recent seasons. This meeting gave us the opportunity to ask their questions directly, in our official role as shareholder representatives.’
Financial Stability
In March, Luton Town announced the club’s financial statements for the year ended 30 June 2025, which related to the 2024/25 EFL Championship season.
The accounts reflected the financial impact of relegation from the Premier League, with turnover reducing to £66.8m from £132.3m in the prior year. Operating costs also reduced by £17.9m, principally due to appropriate relegation clauses in all player contracts.
The scale of overall operations remained comparable with that of other Championship clubs, therefore administrative expenses were relatively static. The club recorded an operating profit of £17.1m, driven by the first year Premier League parachute payment and significant player trading activity during the summer of 2024.
All profits were reinvested into player acquisitions, the Power Court stadium project and long‑term strategic investment. For full transparency, it should be noted that no dividends have been paid to Directors from the club’s profits.
Player Trading
Profits from player trading were £17m. The club confirmed these profits are not ringfenced, as they are required for the day-to-day running of the club, principally player wages. The profit will also contribute towards player acquisition and the construction of Power Court.
The club also confirmed that new Salary Control Management Protocol (SCMP) regulations for this season require that only 50% of turnover, plus 100% of net player trading income, plus 50% equity can be contributed to player wages, which will act as a competitive advantage for the club, which continues to target budgeting healthily within these limits.
Trade debtors were significantly higher in this period, largely owing to the significant player sales in the summer, following relegation – resulting in a higher trade debtors figure, as payments are spread over a number of years.
Premier League
The club confirmed that the Premier League distributions and subsequent parachute payments have been largely invested in the playing squad (more specifically, ~40% player wages and bonuses, ~10% coaching & player support and ~22% player acquisitions – most recovered through subsequent sales or some still on the balance sheet) with the new stadium project (approaching 20%), necessary improvements to Kenilworth Road (just over 5% towards the new Bobbers Stand and Premier League infrastructure compliance) and the remainder split between other operating costs and taxation.
Power Court
With the game-changing increase in revenue Power Court will generate, even after debt repayments the club’s financial position will be significantly improved, especially as it will have a stadium asset on its balance sheet. The strategy and intention remains to pay down a majority of the debt as quickly as possible using development profits from the wider Power Court scheme.
Despite the implications of the Middle East crisis, the club is managing this though its procurement plan, and the project currently remains on track.
League One 26/27
In 25/26, the club was still in receipt of parachute payments, therefore there will be a significant decrease in league distributions for the 26/27 season. This is being offset by player sales from previous years where the club is still in receipt of staged payments, as well as restructuring the squad.
The club also reaffirmed it has modelled its budget to ensure it’s in line with new Profit and Sustainability Rules (PSR), confirming it has ‘sufficient headroom’ to afford a competitive budget.
The club has generally been run sustainably, with little or no requirement for equity contributions over the last seven years and only £8m of contributions in total since its return to the Football League in 2014/15.
Conclusion
Paul Stephens, Trust Chair.
“Our discussions leave us encouraged about the club’s financial position and its long-term plans. There are challenges ahead, but the foundations are strong, Power Court continues to move forward, and the squad has been strengthened for the new season whilst the club continues to operate in a sustainable manner with a clear focus on the long term.”
Thanks to Tom, Alex, Gary and David for their time, openness and support. Thanks to their co-operation, we are delighted that we’re able to provide members with this summary, as part of our commitment to improving communication between Club, Trust, and fans. Look out for more news on that front.
