Luton Town’s 2022/23 financial results covered a “historic” season when they were promoted to the top flight of English football. They finished third in the Championship, thus qualifying for the play-offs, where victory against Coventry City in the final secured Premier League football for the first time in the club’s history.
The club was justifiably proud of its “unique journey from the top of the pyramid to the relative depths of non-league football and back again.” Promotion was achieved despite the departure of manager Nathan Jones to Southampton in November, though arguably Rob Edwards turned out to be an upgrade.
Profit/(Loss) 2022/23
Even more impressively, Luton’s success on the pitch was achieved on a very low budget. In 2022/23 their pre-tax loss widened from £6.4m to £16.3m, largely due to a hefty promotion bonus, which drove a £14.3m (57%) increase in operating expenses.
On the other hand, revenue rose £0.7m (4%) from £17.7m to £18.4m, while profit from player sales (and manager compensation) was up £3.6m from just £1.1m to £4.7m.
The loss after tax was only around half as much at £8.4m, thanks to a £7.9m tax credit.
The main reason for Luton’s revenue growth was commercial, which rose £0.9 (40%) from £2.3m to £3.2m. Match day was slightly up by £0.2m (4%) to £5.1m, but broadcasting dipped a little, falling £0.3m (3%) to £10.1m.
Luton’s wage bill rose £9.8m (55%) from £17.8 m to £27.6m, mainly due to a significant promotion bonus, while player amortisation was up £0.7m (42%) from £1.7m to £2.4m. Other expenses also greatly increased, rising £3.8m (71%) from £5.4m to £9.2m.
Although Luton’s £16.3m pre-tax loss is far from ideal, it was by no means the worst in the Championship.
Indeed, promoted clubs usually have the largest deficits, as they often invest heavily in the squad and then pay hefty promotion bonuses, e.g. Bournemouth £56m and Nottingham Forest £46m in 2021/22. In comparison, Luton’s loss was much smaller.
Player Sales 2022/23
Luton’s profit from player trading “and other related income” virtually quadrupled from £1.1m to £4.7m, though the increase was mainly due to compensation received following the departure of Nathan Jones and his coaching staff to Southampton.
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