By David Gold
September 28 – Arsenal have revealed profit before tax of £36.6 million ($59 million/€46 million) for the last financial year ending May 31, 2012, a substantial increase on the previous figures.
Arsenal made a pre-tax profit of £15 million ($24 million/€19 million) the year previous, and the increase is largely from the high profile sales of Robin van Persie (pictured below) and Alex Song this summer.
The duo left for Manchester United and Barcelona respectively for a total of £40 million ($65 million/€50 million), helping Arsenal record a player trading profit of £26 million ($42 million/€33 million) after the signings of Santi Cazorla, Olivier Giroud and Lukas Podolski.
Arsenal had a reduced income from their property business, while wage costs rose and represent 60 per cent of Arsenal’s revenues of £243 million ($395 million/€305 million).
Net debt stands at almost £100 million ($162 million/€125 million), but most of this is sustainably tied in with the construction of the Emirates and the mortgage relating to that.
The financial results underline that while Arsenal may still be searching for success on the pitch, their financial model off it continues to thrive.
Along with Manchester United, they are the only two teams consistently competing in the Champions League whilst posting strong financial results in English football, and should be able to comfortably comply with UEFA’s financial fair play rules.
Along with the fact that unlike many key rivals such as Chelsea, Tottenham and Liverpool, who are all looking to either move or expand their home stadiums, Arsenal have already built a 60,000 venue, will give Arsenal directors much cause for satisfaction.
However, the next two years will be crucial for the club financially, with key sponsorship deals with Emirates coming to an end in 2014.
Arsenal’s current stadium naming rights and shirt sponsorship deals are below market value as they were signed almost a decade ago to help fund the construction of the Emirates Stadium.
The club will need to continue qualifying for the Champions League regularly until the expiration of those deals for their long term prospects of both thriving financially as well as on the pitch.
The North Londoners look in a stronger position to do that today than they did a year ago though, when they were struggling to qualify for the Champions League after an appalling start to the season.
Arsenal are this year unbeaten after five games despite difficult trips to Manchester City and Liverpool.
Chief executive Ivan Gazidis (pictured below, left, with manager Arsene Wenger) says the results demonstrate that the club “can and will forge our own path to success.”
“Clubs, fans and other stakeholders in the game are demanding a more rational financial approach and this reinforces our conviction that our club is strongly placed to succeed over the long term.
“We have qualified for the Champions League for the 15th season in a row whilst off the pitch we have a business strategy and infrastructure that is helping us to grow our revenues.
“This revenue growth will provide sustainable funds for future investment in the team whilst keeping within the UEFA Financial Fair Play requirements.
“We can and will forge our own path to success.”
Manager Arsene Wenger, famed for his frugal approach, added: “With some clubs we can’t compete on certain players – and for the rest, we only want to bring in players who add something to our squad and give a chance as well to the young players we have.
“We have good players, because to buy one more, we have to get one out.
“Our numbers are good…under the actual circumstances this is quite positive because the whole (global) environment is not positive.
“We are very lucky because we have a good support and the income of our gates is very high.
“We have to maintain that by keeping our fans happy and to continue to manage well in the way that we do it.”
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