Nottingham Forest have recorded a £12million profit in their latest set of accounts.
Nuno Espirito Santo's side are enjoying a phenomenal campaign as they chase FA Cup glory and a place in next season's Champions League. The Reds beat Brighton & Hove Albion in the cup quarter-finals on Saturday evening to set up a semi-final clash against six-time winners Manchester City at Wembley Stadium next month.
Forest are next in action at home to Manchester United on Tuesday evening (8pm kick-off) with Nuno's men currently sitting third in the Premier League table. The Tricky Trees know that a top-five finish is almost certain to seal an unlikely return to Europe's elite competition next season.
And Reach PLC's chief business of football writer, Dave Powell, has explained why the future is also looking so bright at the City Ground from a financial perspective under owner Evangelos Marinakis.
“Nottingham Forest are having a season for the ages, we all know that. But looking at the accounts for 2023/24, a period where the club managed to consolidate their position in the Premier League despite being hit with a four-point deduction for breaching PSR, Champions League qualification this season would supercharge the club’s growth plans," he said.
“The £12m profit, thanks in no small part to the £128.2million in player sales for the period, where the profit (£101million) on those deals can be booked at the time of sale, means that the club have already improved their PSR position into 2025/26, with Premier League clubs having committed to another season of the regulation while they wait on the fallout of the associated party transactions case between the league and Manchester City.
“The die has already been cast in many ways for 2024/25, the current financial year, although were Forest to finish in third this season then they would receive a merit payment of around £50.5million, £39.2million higher than the £11.3million in the 2023/24 accounts. That money would be factored into the current financial year. In terms of what we can see further down the line, the potential for major uplifts in core revenue streams is immense in 2025/26, should they qualify for the Champions League.
“That would bring with it at least £50million in prize money regardless of making the knockout stages or not, and that figure would include major broadcast sums for participation. Broadcast revenue for 2023/24 stood at £130million, that would be closer to £160million with Champions League qualification. Commercial income sat at £19million for 2023/24. While that will increase into 2024/25, should the club bag a seat at the top table of European club football then they would be able to tap into a whole different level of commercial partners.
“Matchday revenue would increase significantly too. The gate receipts for 2023/24 were £11.1million. More games means more opportunities to make money, and with owner Evangelos Marinakis’ plans to redevelop the City Ground and increase capacity, that is a revenue stream that will see significant growth in the coming years. The accounts for 2023/24 also show that the club has made headway in tackling a worrying trend.
“Back in 2022, the club’s wages to turnover ratio stood at 197%. In 2023 that was 94%, while for 2024 it is sitting at 88%. Getting these ratios down is important due to the fact that the Premier League will be bringing financial controls that look similar to UEFA’s squad cost ratio controls in the coming seasons. With European football now a major goal for Forest for the long term, ensuring that they bring themselves in line with those requirements will be key.
“Forest won’t be able to rely on such heavy profit on the disposal of player registrations every year, and it is worth remembering that the underlying loss this season, with that figure stripped out, was £73million, up 20% year on year. That is why the revenue growth that they can have a greater impact on, which is matchday and commercial, needs to be leveraged as much as possible if the club can nail down Champions League qualification this summer. That will unlock opportunities that the club has never seen before.”
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