Luton Town have revealed how the money generated by their historic Premier League campaign and subsequent parachute payments has been invested – with almost a fifth going towards the Power Court stadium project, which remains on track to open in 2028.
The breakdown was provided to the Luton Town Supporters’ Trust during its annual financial review with senior club officials, which also included an update on the progress of the long-awaited new 25,000-seater stadium.
Around 40 per cent of the estimated £204million in Premier League distributions and subsequent parachute payments went towards player wages and bonuses, according to information provided to the Trust, who were given access to the 2024/25 accounts of the football club.
A further 10 per cent was spent on coaching and player support, while around 22 per cent went towards player acquisitions.
Almost 20 per cent was invested in Power Court, with just over five per cent spent on improvements to Kenilworth Road, including the new Bobbers Stand and infrastructure required to comply with Premier League requirements.
The remainder was split between other operating costs and taxation.
The figures provide the clearest breakdown yet of how the additional income generated by Luton’s promotion to the Premier League in 2023 has been used.
Rather than simply being spent on strengthening the squad, a significant proportion has been directed towards the club’s long-term infrastructure and the Power Court project.
Almost £1 in every £5 towards Power Court
Power Court remains central to the club’s long-term financial strategy. Almost 20 per cent of the Premier League distributions and subsequent parachute payments have been invested in the project.
Fans are now beginning to see the beginnings of the stadium emerge from the earth at the town centre site. The 25,000-seat area is targeted to open for the start of the 2028/29 season, which would mean that the Hatters only have 46 more league games left at their current Kenilworth Road home.
The club told the Trust that the significant increase in revenue expected from the new stadium will substantially improve its financial position, even after debt repayments.
The intention remains to pay down a majority of the debt as quickly as possible using profits from the wider Power Court development, which is set to include homes, an 1,800-capacity music venue, bars and restaurants.
The club also told the Trust that the project remains on track despite the implications of the conflict in the Middle East, which are resulting in surging global energy prices and, for Britain’s construction sector, issues such as escalating material manufacturing costs and delayed shipments. The Hatters said the impact was being managed through its procurement plan.
The stadium project therefore continues to move forward despite the significant financial challenges created by Luton’s successive relegations from the Premier League and Championship.
What happened to the rest of the money?
The largest single share of the Premier League money went into the football operation.
Approximately 40 per cent was spent on player wages and bonuses, with another 10 per cent going towards coaching and player support. Around 22 per cent was used for player acquisitions.
The club told the Trust that most of the money spent on player acquisitions had subsequently been recovered through later player sales, while some of the players acquired remain on the balance sheet.
The club also made £17m in profit from player trading during the 2024/25 financial year. Importantly, the club told the Trust that this £17m is not ringfenced specifically for transfers.
It forms part of the club’s overall finances and is required to fund the day-to-day running of the football club, principally player wages. It can also contribute towards future player acquisitions and Power Court.
Turnover almost halves after relegation
The figures come as Luton’s finances have undergone a major change following relegation from the Premier League.
The club’s accounts for the year ending June 30, 2025 showed turnover falling from £132.3m to £66.8m.
Operating costs also fell by £17.9m, principally because of relegation clauses contained within player contracts.
Despite the dramatic fall in revenue, the club recorded an operating profit of £17.1m. The Trust said this was driven by the first year of Premier League parachute payments and significant player trading activity during the summer of 2024.
It said all profits were reinvested into player acquisitions, Power Court and long-term strategic investment.
The Trust also confirmed that no dividends had been paid to directors from the club’s profits.
Trust ‘encouraged’ by financial position
The financial review was attended by Trust chairman Paul Stephens, vice-chairman Mark Chapman and treasurer Les Miller, with chief financial officer Tom Schofield and group financial controller Alex Howard representing the club. Chief executive Gary Sweet and chairman David Wilkinson attended as observers.
The Trust was given access to more detailed non-public sections of the full accounts ahead of the meeting, allowing it to prepare questions for the club and said the Hatters adopted an “open and frank approach” and that “no question was denied”.
The Trust said the meeting also allowed it to address “some areas where there has been a level of misinformation across some social media”, adding in a statement, “We hope this summary provides you with much of the information you’ve asked for, as well as an insight into the financial status and workings of the club and its associated companies.”
Stephens said the review was particularly important given supporters’ desire to understand the club’s finances following the events of recent seasons.
“Supporters are understandably eager to understand more about the club’s finances and its future, especially with our move to Power Court coming closer and closer – and with the events of recent seasons. This meeting gave us the opportunity to ask their questions directly, in our official role as shareholder representatives,” he said.
The Trust said the club has generally been run sustainably, with little or no requirement for equity contributions over the last seven years, and that only £8m in total had been contributed since Luton returned to the Football League in 2014/15.
Following the meeting, Stephens said: “Our discussions leave us encouraged about the club’s financial position and its long-term plans. There are challenges ahead, but the foundations are strong, Power Court continues to move forward, and the squad has been strengthened for the new season whilst the club continues to operate in a sustainable manner with a clear focus on the long term.”
The club’s financial landscape will change again in the current season, with parachute payments no longer available for 2026/27.
Luton has told the Trust that staged payments from previous player sales and restructuring the squad will help offset the significant reduction in league distributions.
The club has also modelled its budget around the new Profit and Sustainability Rules and says it has “sufficient headroom” to afford a competitive League One budget.
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