Nottingham Forest posted a pre-tax operating loss of more than £25m in their latest set of accounts.
The figures for the period from April 2018 to May 2019 show the club’s operating loss for the year was £34.4m - reduced to a loss before tax of £25.1m.
That is an increase from the previous year, when the Reds made a loss before tax of £5.6m.
Administrative expenses have contributed significantly to the latest figure, up from £37m in 2018 to £51.4m, with “increased player wages” a considerable factor, according to the club.
The total wage bill for employees at the club rose from £24.8m to £31.4m.
Cost of sales was also up “due to investment in the playing squad”, going from £5.9m to £8.4m.
In a statement in the accounts, Forest and owner Evangelos Marinakis made clear their focus on remaining within the Football League’s Profitability and Sustainability rules.
They said: “The owners remain committed to the long term future of the club and its funding.
“The board views remaining within the discipline of the EFL’s Profitability and Sustainability rules to be a high priority and has shown that it has the discipline to take tough decisions regarding player sales in order to ensure compliance notwithstanding substantial investment in the playing squad.
“The level of losses sustained by the club are within those provided for by the by the rules, and the club will control losses in future years in order to ensure continuing compliance with the rules.”
The Reds did record an 11 percent increase in turnover in 2018-19, going from £22.7m to £25.3m
Revenue from sponsorship and advertising was up considerably, to £1.7m from £637,000; catering went from £962,000 to £1.2m and income from TV and radio from £597,000 to £805,000.
Ticketing also saw a rise from £6.9m in 2018 to £7.2m in the latest set of accounts, as Forest enjoyed bumper attendances, while income from retail went from £2.4m to £2.6m.
