Luton Town chief Gary Sweet insists they are NOT facing a financial collapse despite being placed under a transfer embargo and the claims club will actually make a PROFIT when they file an account
- Luton was named one of 10 championship clubs under a transfer embargo
- Sportsmail revealed some second-tier clubs are dealing with ‘financial armageddon’
- Luton chief Gary Sweet has reassured supporters that the club’s finances are healthy
- He said the club will file their bills and make a profit before May
Luton Town CEO Gary Sweet has promised supporters that the club will not be among those in the championship facing financial collapse, despite being one of 10 placed under a transfer embargo by the EFL.
The embargoes have been imposed on those clubs that are late in submitting their 2019-2020 bills and some are really reeling in dangerous positions.
An unnamed official at a championship club claimed that “ financial Armageddon ” was underway, but Luton has been quick to insist that they will file their bills before the end of April, well before the new government deadline, and make a profit.
Gary Sweet (left) insisted Luton is not in financial crisis despite being under a transfer embargo
This was possible on Kenilworth Road due to cost-cutting drills and the generosity of fans, many of whom have not sought refunds for season tickets as they see their club fight back to the brink of extinction.
Only about three percent of 7,000 season ticket holders have requested a refund since the national lockdowns closed last year.
“Cash has been very tight and it has been a very difficult year,” Sweet told Sportsmail. ‘But we have made an accounting profit. We are not overspending and we have continued to invest money in the development company to ensure stadium development is on track. While other clubs sell their stadiums, we invest in ours.
The Championship club was one of 10 penalized for late submitting their bills
“We also paid in full all deferments of players and staff during the pandemic. We wouldn’t do that if we were in a state of Armageddon. We have cut costs, reduced player budgets and unfortunately we have to let staff go. We cut our fabric accordingly. ‘
Luton, promoted back to the championship in 2019, is safely in the middle of the table after flirting with last season’s drop, and in the middle of an ambitious 23,000-seat stadium project, with work to begin later this year and a goal to play football in that. 2024.
They work with the payroll of 55 percent of sales, while several clubs in the division have wages in excess of 100 percent of sales in a desperate attempt to make it to the Premier League.
Sheffield Wednesday recently filed overdue bills for 2018-19 with sales of £ 22.7m and wages of £ 36.4m.
Sheffield Wednesday recently filed overdue bills that showed wages were significantly higher than the club’s turnover
“We won’t make heads turn,” Sweet said. ‘We try to compete with clubs that want to lose that kind of money. We have to recruit differently, coach differently, play differently and manage the business differently.
No Luton Town fan who remembers the dark days of three administrations wants us to ever go back there, which is why we put so much time and energy into the new stadium to protect us for the future.
“ We’re not going to let the competition in the championship turn our heads and if that means relegation, so be it, that’s not worth protecting against with overspending. We are ambitious and think we can go higher. Despite budget cuts, we have made progress compared to last season. ‘