Nottingham Forest Financial Results 2023/24

The 2023/24 season marked Nottingham Forest’s second consecutive campaign in the Premier League, following a 23-year absence from the top flight.

It was another challenging year for Forest. After narrowly escaping relegation the previous season, they once again found themselves in a battle for survival. Matters worsened with nine matches remaining, when the club was docked four points for breaching the Premier League’s Profit and Sustainability Rules (PSR), pushing them into the relegation zone. Despite the setback, a string of crucial late-season victories lifted them to 17th place. They avoided the drop with just 32 points—the lowest total ever recorded by a team that stayed up.

A managerial change mid-season saw Nuno Espírito Santo take the reins from Steve Cooper and by the end of the campaign, the mood at the City Ground was one of enormous relief. Few, if any, Forest fans could have foreseen the dramatic turnaround that would follow. Fast forward to the current season, and Forest sit sixth in the Premier League and are preparing for an FA Cup semi-final—an astonishing rise.

Majority owner Evangelos Marinakis has overseen the club's resurgence. The Greek businessman has invested over £180 million in Forest and is determined to push the club forward. However, this ambition led them to overspend their PSR limit—set at a maximum loss of £61 million—by £35 million. Their appeal, which argued that the delayed sale of Brennan Johnson should be considered, was dismissed, and the four-point deduction stood.

In the end, Forest avoided relegation, have improved their financial position, and are now enjoying a remarkable run of form. After years in the wilderness, life is looking bright again at the City Ground.

Overview of Nottingham Forest's Financial Results 2023/24

Following the points deduction, it was no surprise to see Nottingham Forest strengthen their financial position in the 2023/24 season. Whilst revenue rose by £35 million to reach £190 million, the main driver was a huge £100 million in profit from player sales, including several last-minute deals completed at the end of the season. As a result, the club swung from a £67 million loss in 2022/23 to a £12 million profit before tax in 2023/24.

Financial Highlights for the 2023/24 Season:

Turnover:

• Forest’s turnover rose £35 million to 190 million.

• Matchday revenue saw a 31% increase to £14 million, driven by price increases and domestic cup games.

• Broadcast revenue increased £5 million with three extra live matches.

• New sponsorship deals helped commercial revenue more than double, reaching £21 million. Loan fees also saw a significant increase, rising to £12 million compared to £3 million the previous year.

Staff Costs:

• Staff costs increased by 22%, making Forest the 10th highest in the league. These costs now account for 120% of turnover, the third-highest ratio in the Premier League.

• The sales of Johnson, along with late-season transfers of Niakhate, Mangala, and Vlachodimos, generated £101 million in profit from player sales, ensuring compliance with Profit and Sustainability Rules (PSR).

Profitability:

• The club reported a pre-tax profit of £11.8 million, a significant turnaround from the £67 million loss recorded in the previous season.

Player Trading:

• Forest continued to invest in the squad, spending £140 million on acquisitions, including Sangaré, Elanga, Wood, and Anderson, who joined as part of a late-season player swap with Newcastle.

• Net transfer spending was down to £11 million (from £165 million the prior year) after £128 million was received for player sales.

Football Debt:

• Third party loans increased to £96 million.

• Player trading debt decreased to £70 million, down from £112 million the previous season.

Cash Flow:

• Forest continues to have negative operating cash flows with operating costs exceeding revenue.

• A further £82 million in shareholder loans were converted to debt, bringing the total to £189 million since the acquisition from Marinakis.

Since returning to the Premier League, Forest have had the highest player turnover in the division, bringing in over 30 new signings in their attempts to build a premier league squad. By the end of the season, it seemed this strategy was not working, with the club involved in back-to-back relegation battles. PSR compliance also forcing the club to offload players at the end of the season, including a controversial swap deal with Newcastle. But this season has told a very different story — challenging for a Champions League spot and have reached the semi-finals of the FA Cup.

This remarkable turnaround is set to significantly boost their financial results this season. Broadcast revenue alone is expected to rise by £30–40 million. Matchday income will also increase, thanks to more home fixtures and further ticket price hikes (which fans are probably much happier to pay now). If they qualify for Europe, the 2025/26 season could bring even greater financial rewards — from high-value matches and commercial growth plus UEFA distributions.

It’s been a dramatic shift from the uncertainty of points deductions and relegation battles. Still, the Premier League remains an unpredictable business — and fortunes can change just as quickly in the opposite direction.

Nottingham Forest Season 2023/24 Turnover

Like most smaller clubs, Forest's turnover remains highly dependent on their league position and the corresponding revenue from the Premier League. In the 2023/24 season, £123.5 million was generated from this source, making up 65% of their total income.  Matchday income reached £14 million, placing them 14th in the league, while commercial revenue rose to £29 million, boosted by new partnership deals. Additionally, Forest earned over £15 million from players out on loan, which was included in their overall revenue figures.

While Forest's broadcast revenue will continue to fluctuate with their league position, they recorded good growth in both matchday and commercial income.

The chart above also highlights the significant revenue gap between the Championship and the Premier League. However, it’s important to note that if relegated, the financial impact of returning to the Championship is softened by substantial parachute payments.

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.

The City Ground, home to Nottingham Forest, has a capacity of 30,000 and, like all Premier League stadiums, sells out every match. This season saw a slight increase in the number of paying fans compared to last year due to their domestic cup fixtures. However, the most significant driver of growth was a rise in ticket prices. Average matchday revenue per fan increased from £18.50 to £23.20 — a 26% uplift. The club has emphasized that their prices remain among the most affordable in the league, which holds true: their per-fan revenue is on par with Everton’s and higher than only Sheffield United and Burnley.

Ticket prices were raised again for the 2024/25 season — a decision that initially drew backlash from fans. However, in light of the team’s strong performances this season, the changes are now likely to be met with greater acceptance from the Forest community.

There have been ongoing discussions about redeveloping the City Ground, with owner Evangelos Marinakis outlining ambitious plans. Speaking about his vision for a new 50,000-seat stadium, he said: "It's most important for the town of Nottingham and this is something I want to be able to finalise and for the years to come have one of the best stadiums in England"

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 Forest, 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.

Forest earned £95.1 million from the equal share, £11.3 million for finishing in 17th place, and £16.9 million from their 19 live televised games, three games higher than the previous season.

If Forest can sustain their current form, they stand to increase their share significantly. For context, Chelsea — who finished sixth last season, the position Forest currently hold — received £42.2 million in merit payments, which is £31 million more than Forest earned.

Commercial Revenue

In the 2022/23 season, Forest recorded one of the lowest commercial revenues in the Premier League, partly due to the absence of a front-of-shirt sponsor. That changed in 2023/24 when the club signed a deal with Asian betting company Kaiyun Sports, becoming the eighth Premier League side to feature a betting firm as their primary shirt sponsor. However, this arrangement is short-term — Premier League regulations will prohibit front-of-shirt betting sponsors after the 2025/26 season.

Forest also secured a new three-year kit supply deal with Adidas. These partnerships helped boost commercial revenue to £29 million — nearly double the previous season’s total.

Additionally, the club brought in over £15 million from loan fees, primarily from Orel Mangala’s move to Lyon. When included in the commercial revenue figures, this brings Forest’s total to £49 million, ranking them 10th in the league.

Season 2023/24 Staff Costs

Given the significant influx of new players, it's no surprise that staff costs rose sharply. Salaries increased by 14% to £165 million, while amortisation — the accounting write-down of player transfer fees — surged by 51% to £62 million. Altogether, these changes led to a £41 million, or 22%, rise in total staff costs compared to the previous year.

With total staff costs reaching £227 million (prior to accounting for player sales), Forest ranked 10th in the Premier League — ahead of comparable clubs such as Everton, Fulham, and Brighton. Given their 17th-place finish in the 2023/24 season, it’s fair to say the club underperformed relative to its financial outlay. However, the current campaign paints a much brighter picture, with Forest sitting 6th in the table at the time of this report.

The challenge for Forest lies in the fact that their total staff costs of £227 million account for 120% of their revenue, the third-highest ratio in the Premier League. This suggests substantial losses unless the club can replicate last season’s success in player sales. That said, they have the opportunity to reduce this ratio through revenue growth, which they are already on track to achieve this season — and likely next season as well, should they secure a European spot.

Profit on Player Sales

There has been a significant rise in profit from player sales over the past two seasons, with many clubs, including Forest, relying on this — or being compelled to — in order to meet Profit and Sustainability Rules (PSR). Several clubs have sold players or engaged in player swap deals just before their financial year-end to boost profits.

Nottingham Forest was among the highest earners in this regard, generating £101 million from player sales, including the transfers of Brennan Johnson and late-season deals for Moussa Niakhate, Orel Mangala, and Odysseas Vlachodimos. Johnson’s sale was particularly lucrative, as the full £47.5 million transfer fee was recognized as profit, given he was an academy product.

Vlachodimos was involved in a controversial swap deal with Newcastle, where Anderson moved to Forest as part of the transaction. This type of deal allows both clubs to recognize a profit on the sale, while the cost of the acquisition is amortized over the player’s contract, effectively delaying the financial impact. There are concerns that these kinds of deals may lead to inflated transfer fees, benefiting both clubs in the short term.

There have been no major player sales this season, so profits from transfers will be minimal unless there are end-of-season sales, as seen in previous years.

Season 2023/24 Profitability

Forest have incurred considerable losses in recent seasons, resulting in a breach of Profit and Sustainability Rules (PSR) and the subsequent points deduction. Noting that for PSR purposes the Championship allows only £13 million losses per year whereas the Premier League allows £35 million.

Prior to season 2023/24, the club had only one profitable year in the last ten and that was due to a £40 million loan write off at the time of club acquisition.

Earning promotion to the Premier League is incredibly challenging for Championship clubs that don't have the parachute payments that recently relegated teams receive, as was the case for Forest in 2021/22. As recent years have shown, it’s equally difficult to survive in the Premier League, even with guaranteed broadcast revenue of over £100 million.

Forest took a significant gamble by heavily investing during their time in the Championship and after their promotion to the Premier League. This gamble could have backfired following their points deduction, but the club managed to survive and now appears to be reaping the rewards.

Improving their financial position was inevitable for Forest in the 2023/24 season. While revenue increased by £36 million, costs surged by nearly £50 million, causing operating profit (before exceptional items and interest) to drop to -£73 million, compared to -£60 million the previous year. As a result, Forest relied on exceptional profits from player sales of £101 million to generate an £11.8 million profit before tax, a significant turnaround from the £67 million loss the year before.

Forest were one of seven clubs to report a profit for season 2023/24

Forest is set to increase their revenue this year, thanks to a higher league finish, additional cup matches, and further ticket price hikes. However, costs relative to turnover will remain high, meaning the club is likely to make a loss unless there are last-minute player sales. The profit generated this year provides them with more leeway under the Profit and Sustainability Rules (PSR), and with their PSR limit rising to £105 million due to their time in the Premier League, it’s unlikely they will need to sell players to stay compliant.

Player Trading

Over the two seasons leading up to 2023/24, the club invested £310 million in new signings, the eighth-highest total in the league. They also generated £133 million from player sales, resulting in a net player trading expenditure of £176 million — the eighth-highest in the league, just behind Liverpool.

As noted earlier, at the end of the 2023/24 season, there were questions about the effectiveness of their player acquisition strategy. However, Forest have since proven their ability to make excellent purchases, such as Sels, Murillo, Wood, and Elanga, who collectively cost around £45 million — roughly the same amount they received from Spurs for Johnson.

Season 2023/24 Football Debt

Forest's loans increased to £96 million at the end of season 2023/24. All loans are with third-party financial institutions, as all owner loans have been converted to equity, including an £82 million debt to equity swap in season 2023/24,

The club also had £184 million in outstanding transfer fees payable to other clubs, offset by £114 million in receivables for player sales.

Season 2023/24 Cash Flow

It’s evident that Forest’s recent rise has relied heavily on funding from Marinakis. Since acquiring the club in May 2017, his company has invested £189 million—typically provided as loans that are later converted into equity.

Compared to the investments made by other principal club owners, this figure sits at the lower end. Everton and Fulham have received the highest levels of funding however part of those investments has gone toward facility development, with the other clubs primarily supporting player acquisitions and daily operations.

Forest operates with negative operating cash flows—that is, cash generated from core business activities falls short of covering operating expenses. As a result, part of Marinakis’s investment has gone toward bridging this shortfall, with the remainder largely spent on player acquisitions.

As shown below, Forest is one of five Premier League clubs to have recorded negative operating cash flows over the past three seasons. The data also highlights the scale of Chelsea’s investment in players and Everton’s spending on operations and facility development.

Financial Outlook

As noted, the club remains reliant on the continued financial backing of owner Evangelos Marinakis, with the expectation—outlined by the club—that he will provide the necessary funding going forward.

However, this season’s remarkable turnaround is set to bring significant financial rewards. A higher league finish is expected to boost Premier League distributions by £30–£40 million and securing a place in European competition would provide additional revenue growth in the following season.

The key risk for a club like Forest is that rising costs could create a reliance on consistently strong league performance to sustain their financial model. Should results fall short, this could place strain on the club’s finances—Leicester City serves as a cautionary example of how quickly things can unravel. That said, the club has indicated in its financial statements that it plans for multiple scenarios, suggesting contingency plans are in place to navigate such risks if they arise.

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