Luton Outlaws - Independent Message Board for Luton Town FC

My thinking:

-The financial year only kicks in on 1 Jul 2026. Signings made before this date are put into the 2025/26 accounts where we inevitably made a profit. Hence why getting the squad in for the start of pre-season is a good thing.

-In theory, the shareholders “could” take a substantial dividend from 2025/26 and put it back in as equity without dipping into their own pockets. If £1M was pumped in, £500K additionally would be available for squad costs and the remainder against running costs, which would be in shortfall in any case. Of course there’s a £370K tax hit, but just highlighting a potential loophole.

-Or teams just ignore the rules and take the penalty, à la Forest and Chelsea.

-It seems nonsensical that profits from previous years aren’t considered in following years, but that’s the way the rules have been written for L1 it looks. As I put yesterday, it is ridiculous that every league has different rules and there’s such a jump up to the Championship.