Luton Town have reported record turnover and profits, but admitted that they could have splashed more cash in the January 2024 transfer market in a bid to stay in the Premier League last season.
The Hatters had already broken their transfer record numerous times in the summer window after their historic Championship play-off victory was worth £115million. Though they spent £27million on players in total, in the January window Town only brought in an injured Daiki Hashioka and Tom Holmes, who they loaned him back to Reading. Then injuries began to decimated their squad, which was a significant factor the the team taking just six points from their final 16 top-flight games, sealing relegation.
In the directors’ strategic report, submitted with the accounts for the year ending 30 June, 2024, the Hatters said: “Despite spending just under £27m on new players January also afforded the opportunity to bolster the squad with the arrivals of Japanese international Daiki Hashioka from Sint-Truiden and Tom Holmes and Taylan Harris both from Reading.
“In hindsight the club might have reinforced more, as from the turn of the year onwards injuries began to blight the season with a number of key players succumbing to long term issues that would seem them miss all or large parts of the remainder of the season.
“Indeed the club recorded 11 missing players in a single game week, the joint-highest in the 2023/24 season, while 18 of the 26-man squad were ruled out at some point, with many or these injuries concentrated in the second half of the season, severely hampering the team’s efforts to avoid the drop.”
While spending more money than at any time in their history to help compete in the Premier League, with the average weekly wage for players was recorded as £26,435 and, overall, wages rose by 106 per cent to £57m.
The club’s accounts show the financial boost earned from the club’s historic promotion to the Premier League, included a 618 per cent increase in revenue (to £132m), but that despite this Luton’s bank balance was slightly lower than the previous year.
However, the club have emphasised that its £48million operating profit does not equate to surplus cash, with all earnings reinvested to support long-term ambitions, including stadium development, training facilities and squad improvements.
Investments were channelled into upgrading the Bobbers’ Stand to meet fan and media requirements of the top flight, while training facilities at The Brache have been enhanced and they have securing funds for future academy improvements and the development of their Power Court stadium.
Elsewhere, the accounts showed that promotion bonuses were paid to players and staff that got the Hatters there, plus shareholders, though the club confirmed that no dividends were issued to directors. The early repayment of an EFL COVID loan was also completed.
Operating costs surged as Luton adapted to Premier League demands, with squad-related expenses making up the largest portion. Despite this, the club have said that their wages-to-turnover ratio decreased, highlighting the club’s commitment to financial sustainability. This cautious approach was particularly significant given Luton’s relegation at the end of the 2023/24 season, despite a determined effort to retain top-flight status.
In a structural change, director Mike Herrick resigned during the year and sold his shares to existing shareholder Rob Stringer, which did not alter the club’s overall equity position.
Luton Town say they now remain focused on their long-term strategy, using its financial growth to build for the future while maintaining a sustainable approach to club operations.
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