Nottingham Forest posted an operating loss of almost £50 million, reduced to a loss before tax of £45m, in their latest set of accounts
The figures for the year ending June 2022 show the Reds posted an operating loss of £49.5m, which was reduced to a loss before tax of £45.6m after interest, profit on disposal of players and a historical loan write-off. That compares to a loss of £34.4m, reduced to a loss before tax of £15.5m the previous year, ending June 2021.
The just-released set of accounts incorporate a full season of fans being back in stadiums following the coronavirus pandemic, as well as a campaign which saw Forest secure promotion to the Premier League. Those factors helped turnover increase from £18.4m in 2021 to £29.7m. The club point to the “on field success, together with the return of matchday revenues more akin to a ‘normal’ season” as allowing them to “begin to recover” from the effects of the pandemic.
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However, administrative expenses have gone up from £46.8m to £73.7m. Addressing that leap, it is said: “The main driver behind this increase was the triggering of bonuses linked to the promotion to the Premier League. There were also additional costs related to participation in the play-off competition. In addition, versus 2020-21, match day costs increased due to games no longer being played behind closed doors.”
During the financial year, owner Evangelos Marinakis converted £41m worth of loans to the club into equity. And the strategic report makes clear the Greek’s continued commitment to the club, as well as his willingness to invest.
It says: “The owners remain committed to the long-term future of the club and its funding. The board sees remaining within the discipline of the Premier League’s Profit and Sustainability Rules to be a high priority whilst ensuring the club can be as competitive as possible.”
It adds: “First team performance can have a significant impact on other key areas of risk, so investment in the playing squad and academy continues to be a priority within the financial and regulatory constraints within which the club operates. The board have systems in place to monitor the risks and uncertainties and take corrective action when required.”
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