The City Ground

Next Game

N Forest v Fulham

Wednesday, 17 September 2014, 19:45

Sky Bet Ch'ship

The City Ground

Last Game

N Forest 1 - 1 Derby

Sunday, 14 September 2014, 13:15

Sky Bet Ch'ship

Forest announce big losses

Nottingham Forest have announced losses of £17.1million for the last financial year, meaning the club could struggle to adhere to Financial Fair Play rules this season.

Last Updated: 05/03/14 at 14:04 Post Comment

City Ground: Nottingham Forest announce significant losses

City Ground: Nottingham Forest announce significant losses

The club breached FFP limits in 2012/13, when allowable losses were £10million.

Crucially, there were no punishments in place for breaching the rules last season - but there are this season with Sky Bet Championship clubs allowed to lose£8million.

Therefore, if Forest fail to reduce the deficit for the current campaign, they could be hit with fines and a transfer embargo next season.

When asked about the club's financial situation recently, Reds chairman Fawaz Al Hasawi said that the issue would be addressed in the form of sponsorship deals from several companies in his homeland of Kuwait.

The end-of-year accounts submitted on Wednesday morning showed that staff costs were up from £17.6million in 2011/12 to £21million, with wages accounting for £18.4million, dwarfing the club's turnover figure of £14.4million.

Kuwaiti owners, the Al Hasawi family, backed Forest considerably with £35.4million owed to them in the form of interest free loans, which would only be repayable when the club was in a position to do so, according to the accounts.

The average league attendance at the City Ground increased last season from 21,969 to 23,083, with the team performing better on the pitch following their fight against relegation during the 2011/12 campaign.

This also meant there was a raise in income from gate receipts, growing 6% to£7.1million. However, this was offset by a £700,000 reduction in the basic award from the Football League to £1.8million.

Despite the huge losses, according to the directors' report submitted along with the accounts to Companies House, the finances had stabilised following the takeover by the Al-Hasawi family, who bought the club in the summer of 2012 following the sudden death of previous owner and chairman Nigel Doughty the previous February.

Doughty funded Forest's losses personally through a loan account and, during more than a decade as owner, was thought to have put close to £100million into the club. At the time of the takeover, Doughty's estate was owed £85.3million.

As part of the acquisition, the Al-Hasawi family reduced the short-term debt by capitalising a "significant" element of those loans owed to Doughty's estate.

Related News

Most Commented

Readers' Comments

W

hen players in their 30s leave Real Madrid, it's usually to Bolton Wanderers. I miss those days.

sailingmagpie
Top Ten CL Players Whetting Our Appetite

W

ow Pete, you would make an excellent stalker!

fouloleron
Taking A Close Look At Mario...

T

his specializing in mediocrity will only stop when Wenger and his entire back room staff are cleared out. Dortmund are everything Arsenal should be; in fact they're everything Arsenal thought they were, until they met this supreme doppelg nger.

dr soccer
The Bitter Taste Of Arsenal Déjà Vu

Footer 365

Premier League: Newcastle winger Jonas Gutierrez battling testicular cancer

Newcastle United winger Jonas Gutierrez has revealed he has been receiving treatment for testicular cancer.

Champions League: Arsenal boss Arsene Wenger admits Dortmund deserved victory

Arsenal boss Arsene Wenger admits his side were 'average' following their 2-0 defeat to Borussia Dortmund.

Champions League: Liverpool boss Brendan Rodgers praises side after Ludogorets win

Liverpool boss Brendan Rodgers praised his side's character as they battled to a late 2-1 win over Ludogorets.

Mail Box

B**locks To That, I'm Going To Sit In The Shed

Arsenal supporters given their understandable reaction to the debacle in Dortmund, whilst Liverpool fans weren't too impressed either. Still, at least they won...

Who's More Miserable - Baggies Or Mags?

There's not a lot to choose between the misery of West Brom fans and the misery of Newcastle fans. We have mails on them, 'only QPR' and lots on Man United...

© 2014 British Sky Broadcasting Ltd. All Rights Reserved A Sky Sports Digital Media property