It's how football finances has to work now in the divisions above us - you cannot pile up debt, but have to issue equity. So they have. That way at least £18m of losses can be wiped off the accounts for the year and keep them within FFP.
" For the second consecutive season, all Championship clubs generated operating losses.
After some overall improvement for the last three years, Championship clubs’ operating losses worsened by 25% to £411m.
Whilst delivering a slightly improved wages/revenue ratio, Championship clubs’ other costs were significantly higher in 2023/24 (compared to 2022/23), in part driven by club mix.
Pre-tax losses for Championship clubs were stable at £318m (2022/23: £313m), as costs of player amortisation (£271m) and finance costs (£77m) were more than offset by profit from transfers-out of players (£419m).
League One clubs’ pre-tax losses worsened to an average of £5.2m (2022/23: £5.0m), while League Two clubs’ pre-tax losses averaged £2.3m per club (2022/23: £1.5m).
Championship clubs’ net debt grew by £83m (5%) to £1.5 billion by the end of the 2023/24 season. This movement was partly driven by changing club mix. Despite four of the six clubs promoted/relegated into the Championship improving their net debt position during the season, net debt across these clubs was £162m higher than across the six clubs which exited the Championship at the end of 2022/23.
12 Championship clubs received equity injections from owners totalling £554m in 2023/24. Three clubs (Birmingham City, Leeds United and Middlesborough) made up 70% of this total, highlighting the willingness of some owners to fund clubs’ operations and player spending.
As part of changes to help promote a longer-term outlook and financial sustainability, the EFL’s amendments to Salary Cost Management Protocol (SCMP) rules for League One and League Two clubs from 2025/26 now curbs owners’ ability to fund player-related expenditure through equity injections. The introduction of these regulations may encourage EFL owners to consider longer-term investment strategies as rapid movement through the league ranks may become more difficult to achieve."
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https://www.deloitte.com/uk/en/services/consulting/research/annual-review-of-football-finance-europe.html
After some overall improvement for the last three years, Championship clubs’ operating losses worsened by 25% to £411m.
Whilst delivering a slightly improved wages/revenue ratio, Championship clubs’ other costs were significantly higher in 2023/24 (compared to 2022/23), in part driven by club mix.
Pre-tax losses for Championship clubs were stable at £318m (2022/23: £313m), as costs of player amortisation (£271m) and finance costs (£77m) were more than offset by profit from transfers-out of players (£419m).
League One clubs’ pre-tax losses worsened to an average of £5.2m (2022/23: £5.0m), while League Two clubs’ pre-tax losses averaged £2.3m per club (2022/23: £1.5m).
Championship clubs’ net debt grew by £83m (5%) to £1.5 billion by the end of the 2023/24 season. This movement was partly driven by changing club mix. Despite four of the six clubs promoted/relegated into the Championship improving their net debt position during the season, net debt across these clubs was £162m higher than across the six clubs which exited the Championship at the end of 2022/23.
12 Championship clubs received equity injections from owners totalling £554m in 2023/24. Three clubs (Birmingham City, Leeds United and Middlesborough) made up 70% of this total, highlighting the willingness of some owners to fund clubs’ operations and player spending.
As part of changes to help promote a longer-term outlook and financial sustainability, the EFL’s amendments to Salary Cost Management Protocol (SCMP) rules for League One and League Two clubs from 2025/26 now curbs owners’ ability to fund player-related expenditure through equity injections. The introduction of these regulations may encourage EFL owners to consider longer-term investment strategies as rapid movement through the league ranks may become more difficult to achieve."