Town earmarked £30m of top flight cash for new stadium
Luton Town will only have to borrow around half of the amount needed to build their new stadium at Power Court to the full capacity of 25,000 thanks to their promotion to the Premier League two years ago.
The details have emerged after the Luton Town Supporters’ Trust held their annual financial review of the 2023-24 accounts of the football club, 2020 Developments and the holding company recently, which saw Trust chairman Paul Stephens and treasurer Les Miller meet up with chief financial officer Tom Schofield and group financial controller Alex Howard, while chairman David Wilkinson and chief executive Gary Sweet attended as observers.
After reaching the top flight via a penalty shootout victory over Coventry City at Wembley in May 2023, the board opted to ringfence £30 million of central distributions to build their new ground in a single phase, to its full 25,000 capacity. Although Luton were relegated, the Hatters, who received approximately £49 million in parachute payments last year and will get a final sum of around £40 million this term, are still pushing ahead with the move, as they expect to play their first game at the beginning of the 2028-29 season.
Luton Town's intended new home at Power Court - pic: Luton Town FCplaceholder image
Luton Town's intended new home at Power Court - pic: Luton Town FC
Asked how much additional borrowing will have to be taken on board to complete Power Court, and as a result how much will day-to-day finances be affected by interest payments, with the club looking to pay the debt off as soon as possible, a statement from the Trust said: “The cumulative profits the club has generated over recent seasons have built up significant capital which will allow it to fund around half of the Power Court stadium construction with equity rather than debt, with the remainder borrowed. Further equity has and will continue to be invested in the infrastructure works to enable the wider site.
“Given the huge increase in revenue Power Court will generate, even after debt repayments the club’s financial position will be significantly improved, not least because it will have a stadium asset on its balance sheet. The strategy and intention remains to pay down the debt as quickly as possible using development profits from the wider Power Court scheme.
“Power Court Stadium Limited, a new company and a wholly owned subsidiary of 2020 Developments (Luton), was incorporated on 15th April 2025. This was set up as a mandatory requirement of the lender and in order to manage the stadium development independently and protect the club during the period of borrowing.”
Giving his response to the answer, and the meeting, a more than satisfied Trust chair Stephens added: “The Trust supports 2020’s approach as we too are committed to a sustainable future and believe it is a formula for not just survival but building a successful club. Despite the disappointment of successive relegations, the club’s finances are robust, and we remain debt free.
“Maintaining sustainability means not taking gambles for potential short-term gains - 2020 will not mortgage the club’s future. We have seen what that can lead to in our own past and right now we’re seeing it across the football world. 2020 describe themselves as custodians, and that means creating and protecting a legacy for the club, the town and generations to come.
"This meeting gave us insight into how sustainability informs decisions on recruitment and budgets. I’m confident this strategy will deliver long-term success. The Trust will, of course, continue to engage with and challenge the Club as shareholder representatives. We left the meeting positive about the club’s position. Despite relegation, finances are sound and sustainable, and with Power Court approaching, we believe the club is in strong hands with 2020.
"We were reassured that the club continues to be run in a truly sustainable manner, with no external debt or interest payments required, and no immediate call for additional equity finance. With the exception of the pandemic period, the club has had no requirement for equity injections from shareholders for more than 6 years.”
Continue Reading