The risk and reward tightrope Nottingham Forest are walking after £79m loss | OneFootball

Nottingham Forest’s latest accounts lay bare the cost of trying to keep pace with the Premier League’s elite, despite record income.

According to Nottingham Post, Forest reported an operating loss of £64.9m and a pre-tax loss of £78.9m for the year to 30 June 2025, set against record revenue of £221.7m after a seventh-place finish. The previous year showed an operating loss of £73.3m and a pre-tax profit of £12.1m, with experts pointing to player sales as the key factor.

Finance specialists said turnover remains roughly a third of Big Six levels, making sustained top-end competition difficult without selling as well as buying. They noted last season’s higher TV distributions reduced the operating loss, but income this term could revert towards 17th-place territory.

The headline deficit was linked to limited player sales, and some suggested it may have been calculated, with Forest believing they would not breach PSR and keeping key assets such as Morgan Gibbs-White. The accounts also set out Evangelos Marinakis’ long-term ambitions, while accepting that sales remain a funding option if required.

Administrative expenses rose to £271.4m, driven by wages and amortisation, weighing heavily on the bottom line. Ownership support remains pivotal, with debt converted into equity and assurances of ongoing backing.

Forest were docked four points two years ago under PSR. From 2026/27, Squad Cost Ratio will cap squad costs as a share of revenue, and early calculations suggested last season’s figures would have breached, indicating changes may be needed and fines more likely than points.

If relegated, challenges would follow, yet owner commitment and parachute payments could leave Forest well placed to contend for promotion.

Source: Nottingham Post