INSIGHTS AND INFORMATION FROM THE TRUST’S ANNUAL FINANCIAL REVIEW WITH THE CLUB
Trust Chairman Paul Stephens 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 2023/4 accounts of the football club, 2020 Developments and the holding company. Chairman David Wilkinson and CEO Gary Sweet attended as observers.
In addition to the statutory accounts filed at Company House (on time) the Trust received more detailed non-public pages from the full accounts in advance, enabling us to prepare our questions. The club’s open and frank approach was appreciated: it enabled the meeting to deliver full assurance about the accounts, to address the Trust’s questions and correct misinformation circulating among some of the fanbase.
There are some aspects we’re unable to share with you as they are confidential – salaries and contract details for instance, and transfer budgets which are commercially sensitive – but we hope this round up provides you with much of the information you’ve asked for, and an insight into the financial status and workings of the club and its associated companies.
Paul Stephens, Trust Chair:
“We left the meeting positive about the club’s position. Despite relegation, finances are sound and sustainable, and with Power Court approaching, we believe the club is in strong hands with 2020.”
Parachute Payments
The club confirmed that relegation to League One does not affect parachute payments. In 2024/25, the club received approximately £49 million; this will fall to £40 million in 2025/26. No payment will be due in 2026/27, as clubs relegated after one Premier League season only receive two years of payments. Overall, the financial impact of relegation is minimal.
Season Ticket Prices
Inflation continues to add to costs – for instance, staffing, as we are a real Living Wage Employer, with wages rising in line with inflation. This is a key factor in setting ticket prices, whichever division we are in. Over a seven-year period season ticket prices have tracked significantly behind CPIH, the UK’s leading measure of inflation. The Trust were consulted about, and agreed on, the £10 reduction for 2025/26.
Power Court
On promotion to the Premier League, the Board took the decision to earmark £30 million of central distributions to build Power Court in a single phase, to its full 25,000 capacity.
In answer to a member’s question ‘How much additional borrowing will have to be taken on board to complete Power Court, and as a result how much will day-to-day finances be affected by interest payments’: the cumulative profits the club has generated over recent seasons have built up significant capital which will allow it to fund around half of the Power Court stadium construction with equity rather than debt, with the remainder borrowed. Further equity has and will continue be invested in the infrastructure works to enable the wider site.
Given the huge increase in revenue Power Court will generate, even after debt repayments the club’s financial position will be significantly improved, not least because it will have a stadium asset on its balance sheet. The strategy and intention remains to pay down the debt as quickly as possible using development profits from the wider Power Court scheme.
Tom advised us that Power Court Stadium Limited, a new company and a wholly owned subsidiary of 2020 Developments (Luton), was incorporated on 15th April 2025. This was set up as a mandatory requirement of the lender and in order to manage the stadium development independently and protect the club during the period of borrowing.
Executive Salaries
The club has a policy of not discussing specific details on any individual’s salaries. Tom clarified that senior executive salaries and bonuses have always been set by a remunerations committee made up of shareholders, factoring in individual and club performance, financial standing and benchmarking against competitors and, as with players and coaching staff, parameters on promotion bonuses and relegation clauses are standard in such contracts within the industry.
At Luton, all directors are paid directly by the Club and their aggregate remuneration is in the public domain, with the remuneration of the highest paid director also disclosed, though that person is not specifically identified. Additionally, amounts disclosed are not necessarily commensurate with the year reported and need to be read accordingly.
Not all clubs are structured in the same way, so it is difficult to make direct comparisons across the industry based purely on public information. The Club confirmed, however, that executive pay was typical of a new entrant to the Premier League during the 2023-2024 season.
Fines and Penalties
Fines and penalty payments of £181,700 related to fan behaviour around the Sunderland play off home semi-final, player booking numbers v Crystal Palace and the largest amount – £120k – for homophobic chanting at Brighton. Although this was a very small section of fans, it goes to show why supporters need to think about what they sing, say and do – the club and its reputation pays a heavy price when some people don’t.
General Financial Stability
We were reassured that the club continues to be run in a truly sustainable manner, with no external debt or interest payments required, and no immediate call for additional equity finance. With the exception of the pandemic period, the club has had no requirement for equity injections from shareholders for more than 6 years.
Conclusion
Paul Stephens, Trust Chair.
“The Trust supports 2020’s approach as we too are committed to a sustainable future and believe it is a formula for not just survival but building a successful club. Despite the disappointment of successive relegations, the club’s finances are robust, and we remain debt free.
Maintaining sustainability means not taking gambles for potential short-term gains –2020, will not mortgage the club’s future. We have seen what that can lead to in our own past, and right now we’re seeing it across the football world. 2020 describe themselves as custodians, and that means creating and protecting a legacy for the club, the town and generations to come. This meeting gave us insight into how sustainability informs decisions on recruitment and budgets. I’m confident this strategy will deliver long-term success. The Trust will, of course, continue to engage with and challenge the Club as shareholder representatives.
Thanks to Tom, Alex, Gary, and David for their time, openness and support. This was our first in-depth look at the Club’s accounts, and we’re committed to improving communication between Club, Trust, and fans – starting with regular updates on key areas like Power Court. We’re all on this journey together and – as always with LTFC, it’s unique and exciting every step of the way.”
