Luton Town Financial Results 2023/24
- Matchday Finance
- May 23
- 9 min read
Updated: 2 days ago
The 2023/24 season marked Luton Town’s return to top-flight football after a 32-year absence—a remarkable achievement that capped a decade-long climb up the English football pyramid.
As recently as the 2013/14 season, Luton were playing in the fifth-tier Conference Premier. From there, they earned successive promotions through League Two and League One, and after four seasons in the Championship, secured a historic promotion to the Premier League via the play-off final. Their rise was especially notable given the club’s limited financial resources.
But the dream quickly turned into a nightmare. Luton struggled to escape the relegation zone throughout their Premier League season, ultimately finishing 18th with just 26 points. While relegation wasn’t entirely unexpected—considering the club’s limited budget—the bigger shock has come this season. as they suffered a disastrous second consecutive relegation, finishing 22nd in the Championship and dropping to League One. They became just the third club in the past 25 years—alongside Sunderland and Watford—to suffer back-to-back relegations.
Following their promotion to the Premier League, Luton took a cautious financial approach despite the guaranteed windfall of over £100 million. They spent just £27 million on player acquisitions and £59 million on wages—both the lowest in the division by some margin. In retrospect, the club acknowledged they may have underinvested in the squad, a shortfall that was exposed during a late-season injury crisis. A portion of their Premier League income was also allocated to mandatory infrastructure upgrades and their long-term plan to build the £450 million Power Court stadium.
Chief Executive Gary Sweet made it clear that the club would not go on a spending spree, instead prioritizing sustainability and balancing investment between the playing squad and long-term infrastructure.
Still, this season’s relegation has come as a major blow. With parachute payments worth around £40 million and further support due next season, expectations were high for an immediate push for promotion—not a drop to the third tier. Yet, given how far Luton have come in recent years, it would be unwise to rule out another resurgence.
Ownership Structure
This report is based on the financial results of Luton Town Football Club 2020 Ltd. This entity covers the football operations of Luton Town. This entity is 100% owned by 2020 Holdings (England) Ltd.
An important note is that the majority of the fixed assets of the group are held under a separate entity controlled by 2020 Holdings (England) Limited. This includes the development of the new stadium at Power Court, of which the group has £36 million in assets under construction.
Overview of Luton's Financial Results Season 2023/24
Premier League central payments boosted Luton’s revenue to £132 million in 2023/24, a rise from just £18 million the previous season—highlighting the vast financial gulf between the top flight and the Championship. Although the club increased spending on both players and day-to-day operations, they still posted a strong profit of £49 million, the fifth highest in the league. Luton were also one of only two clubs to record an operating profit (profit before player sales and exceptional items), the other being fellow relegated side Sheffield United.
Financial Highlights for the 2023/24 Season:
Turnover
As expected, turnover increase to £132 million, from £18 million the previous year. This was the lowest revenue in the league.
Premier League broadcast payments, at £117 million accounted for 89% of total revenue.
Matchday revenue increased by £1 million to £6 million, the lowest in the league.
Commerical revenue jumped to £9 million, from £3 million, again the lowest in the league.
Staff Costs
Salaries doubled to £58 million, and amoritsation increased from £2 million to £9 million.
Total staff costs at £68 million was the lowest in the league, Sheffield United's £85 million the next lowest.
Profitability
Luton had the highest operating profit in the league at £44 million, one of only two clubs to achieve a positive operating result.
Profit before tax of £49 million was the fifth best.
Player Trading
Luton invested £27 million in new signings—the lowest spend in the league.
Net transfer spend was £23 million after £4 million was generated in player sales.
The net book value of the squad, at £32 million, is lowest of any premier league club in recent seasons.
Football Debt
Luton have no debt, having paid off a related party loan of £11 million, and loaned their parent company £7 million.
Cash Flow
They generated operating cash flows of £44 million (cash flows before investments and financing).
A net £21 million was spent on players, and £22 million was transferred to their parent company to settle a loan and for infrastructure investment.
With around £45 million in parachute payments arriving this season, the club is expected to at least break even or potentially turn a modest profit. Having spent just one season in the Premier League, Luton is entitled to parachute payments for only two years, with a final £30 million due next season before the payments come to an end.
Luton Turnover 2023/24
As a smaller club, Luton’s turnover is heavily dependent on their league status and the associated distributions from the Premier League. In the 2023/24 season, they received £117 million from this source, representing 89% of their total income. Meanwhile, their matchday revenue stood at just £6 million, and commercial revenue reached £9 million—both the lowest figures in the league.
Broadcast revenue jumped from the typical £10 million in the Championship to £117 million in the premier league. Both matchday and commercial revenue increased.
Matchday Revenue
Matchday revenue is influenced by factors such as the number of home games, average attendance, ticket prices, and the club's ability to generate income from hospitality events and corporate boxes. The only exception to this is domestic cup matches, where revenue is shared between the clubs and the FA.
Luton current home, Kenilworth Road stadium has a capacity of 12,000, which is very low by premier league standards, though still slightly higher than Bournemouth's Vitality stadium. This puts a constraint on their matchday revenue. and at 6 million was the lowest in the league, just behind Bournemouth who generate a higher revenue per fan.
Broadcast Revenue
Broadcast revenue primarily comes from central distributions from the Premier League, UEFA (if the club participates in European competitions), and revenue generated through the club's media platform. For Luton, broadcast revenue is almost entirely derived from Premier League distributions.
The chart below illustrates the distribution by club for the 2023/24 season. A significant portion, 67%, is evenly distributed among all clubs, with the remainder based on league position and the number of televised live games. For more information on how the Premier League central payment distribution system works check out our blog Premier League Broadcast Distribution for Season 2023/24.
Luton earned £95.1 million from the equal share, £8.5 million for finishing in 18th place, and £11.8 million from their 13 live televised games.
Following their relegation after just one season in the Premier League, the club will receive parachute payments for two years instead of the usual three—approximately £42 million in the current season and around £32 million in 2025/26.
Commercial Revenue
Luton’s commercial revenue—which encompasses sponsorships, retail, stadium tours, and other business ventures—increased to £9.5 million this season, up from £3.2 million the year before. Despite the growth, this is very low by Premier League standards and was the lowest in the division.
One factor behind this limited commercial income is the club’s stance on gambling sponsorships. Unlike most small and mid-sized Premier League clubs, Luton has publicly declined partnerships with gambling companies. Thirteen clubs in the league feature gambling sponsors—many prominently displayed on front-of-shirt deals—but Luton has remained committed to long-standing, non-gambling partnerships, such as their front-of-shirt sponsor Utilita, a British electricity and gas supplier.
Season 2023/24 Staff Costs
As expected, Luton's staff costs increased with several new players arriving. Salaries doubled to £59 million and amortisation increased to £9 million.
These figures however are very low by premier league standards with total staff costs of £68 million the lowest in the league and £17 million less than the next lowest Sheffield United.
Amortization— the accounting write-down of player transfer fees — is particularly low, as the club has a squad cost of only £38 million, the lowest of any premier league club in the recent seasons.
Profit on Player Sales
Unsurprisingly, as a promoted club Luton reported very little in profit from player sales, with £1.2 million earned.
Season 2023/24 Profit and Loss
It was evident that Luton’s strategy following promotion was to invest cautiously in the squad while allocating a portion of the increased revenue toward the club’s long-term stability. There was no "Nottingham Forest like" spending spree.
When looking at operating profit—which excludes income from player sales and other exceptional items—Luton led the Premier League and was one of only two clubs to report a positive figure. The other was fellow relegated side Sheffield United, who similarly adopted a restrained approach to spending.
A review of Luton’s profit and loss over time highlights that their rise to the Premier League was achieved on a remarkably modest budget. Unlike many of their competitors—several of whom benefited from substantial parachute payments—Luton reached the top flight without incurring significant financial losses along the way.
There overall profit for season 2023/24 was the fifth highest in the league.
Season 2023/24 Player Trading
As previously noted, Luton achieved promotion to the Premier League without significant investment in their playing squad—an achievement clearly reflected in their transfer activity. At the start of their promotion-winning season, the total cost of their squad stood at just £6 million, with minimal spending in the years leading up to it. This underscores the scale of their accomplishment in reaching the top flight.
Following promotion, the club did strengthen the squad, signing eight players for transfer fees and adding three more on free transfers. Total spending for the 2023/24 season reached £26 million, with the highest fee paid being £5 million for Ryan Giles from Wolverhampton Wanderers. This is an exceptionally modest outlay for a club joining the Premier League.
In many respects, Luton performed admirably given their limited resources, remaining competitive in several matches—including memorable encounters against Liverpool and Arsenal. While the club has acknowledged that greater investment might have improved their chances of survival, there are no guarantees in football. This was clearly illustrated this season by Ipswich and Southampton, both of whom spent around £100 million on their squads yet were relegated with fewer points than Luton.
Luton’s £26 million outlay on player acquisitions was by far the lowest in the Premier League, further emphasizing the scale of the challenge they faced.
At the start of this season, Luton reshaped their squad by offloading several players, including Chiedozie Ogbene, Ross Barkley, Ryan Giles, and Elliot Thorpe, while making a number of new signings—most notably their record acquisition, Mark McGuinness from Cardiff. Despite these efforts to strengthen the team, they were unable to avoid the second consecutive relegation, dropping to League One.
Football Net Debt
At the end of the 2023/24 season, Luton Town reported no net debt and was in fact owed £7 million by its parent company. It’s worth noting, however, that the parent company holds £36 million in loan notes, secured against land owned by the wider group.
The club also has £3.8 million in outstanding transfer fees payable to other clubs.
Cash Flow
While Luton Town Football Club 2020 Ltd does not publish a formal cash flow statement, estimates can be derived from the financial accounts of the parent company.
For the 2023/24 season, it is estimated that the club generated £43.9 million in operating cash flow. Of this, £23.4 million was spent on player acquisitions, while £2.5 million was received from player sales. £21 million was transferred to the parent company, including £11 million used to settle an intercompany loan.
Also to note, the parent company invested £19 million in fixed assets, primarily related to the new stadium development. This project is being managed through a separate entity, which currently reports £36 million in assets under construction.
Financial Outlook
The club is set to receive approximately £45 million in parachute payments this season, which should allow them to at least break even, if not post a modest profit. With a second and final payment of around £30 million due next season, Luton will undoubtedly be aiming for a swift return to the Championship.
Despite the setback of relegation, it’s clear that Luton remain committed to building a sustainable, long-term future in the higher tiers of English football. Construction of their new £450 million Power Court stadium is scheduled to begin soon, with a planned opening in the 2028/29 season. The project is being financed through profits from the sale of land at Newlands Park, as well as a portion of the revenue generated during their Premier League campaign
Chairman Gary Sweet described the development as a pivotal moment for the club, stating, "This is a transformative opportunity for the Club, helping us realise our ambitions to be a Premier League club again one day. We are united with the supporters on the need for a new stadium to move our Luton Town forward and we are delighted to be moving into this exciting construction phase.".
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