Nottingham Forest Finances 2023/24

Retro Emporium

Notwithstanding last Sunday’s defeat to Manchester City in the FA Cup semi-final, it’s fair to say that Nottingham Forest have been this season’s surprise package.

Guided by the experienced Portuguese Nuno Espirito Santo, who replaced Steve Cooper as manager in December 2023, they are still challenging for a place in the Champions League, which very few pundits (if any) predicted before the season started.

The magnitude of their improvement can be seen by looking at the chairman’s comment on 2023/24, when the club was basically happy to simply “secure its divisional status for the second year running”.

In fact, Forest finished 17th, one place above the relegation zone, despite receiving a 4-point deduction for breaching the Premier League’s Profitability and Sustainability Rules (PSR).

Their fans believed that justice had been done, as Forest did enough on the pitch to ensure survival, while others might argue that this successful campaign was only made possible by the financial excesses that resulted in the club failing to comply with the PSR targets.

Whatever your point of view, Forest should be congratulated on the significant progress made since Evangelos Marinakis became the club’s majority shareholder in May 2017. The Olympiacos owner has an 80% stake with the other 20% held by his associate Sokratis Kominakis.

When the Greek businessman arrived, Forest had just finished a lowly 21st in the Championship, only avoiding relegation to League One on goal difference, but there has been steady improvement since then, first shown by promotion to England’s top flight in 2021/22, when they defeated Huddersfield Town in the play-off final, then a rise up the Premier League.

Forest have also improved off the pitch, as we shall see with a review of the accounts for the 2023/24 season, which the club described as “a challenging and exciting campaign, that ultimately proved a successful one.”

Profit/(Loss) 2023/24

Forest swung from a £67m pre-tax loss to a £12m profit, which represented a £79m turnaround in just 12 months, largely due to a significant increase in profit from player sales, which shot up from only £3m to £101m.

In addition, revenue rose £35m (22%) from £155m to £190m, which was a new club record, though this was more than offset by a steep increase in operating expenses, which climbed £49m (23%) from £214m to £263m, while net interest payable was up £5m (47%) from £10m to £15m.

All of Forest’s revenue streams were higher, most notably commercial, which virtually doubled from £15m to £30m, and player loans, rising £11m from £4m to £15m. Gate receipts were up by around a third, increasing from £11m to £14m, while broadcasting rose £5m (4%) from £125m to £130m.

However, after spending so much time outside the top flight, Forest continued to significantly invest in the squad “to give the team the best opportunity to compete in the Premier League”.

As a result, Forest’s wages rose £21m (15%) from £145m to £166m, while player amortisation shot up £21m (51%) from £41m to £62m. In addition, other expenses rose £6m (20%) from £28m to £34m.

Forest’s £12m profit is undoubtedly a fine achievement, though a few clubs did manage to deliver even more impressive numbers last season, namely Brighton £75m, Manchester City £74m, West Ham £57m and Luton Town £49m.