By Mark Baber
September 24 – Arsenal’s accounts for the year ending May 31 reveal a fall in profits, rise in turnover and a significant cash reserve, a chunk of which has since been spent on the signing of Mesut Ozil as the North London club seeks to reap the rewards of years of financial prudence.
Arsenal’s pre-tax profit has fallen to £6.7 million from £36.6million last year, chiefly due to profits on player trading of £1.6 million (compared to £26.1 million in 2012) and an increase in the wage bill to £154.5 million (from £143.4m in 2012).
However, turnover has gone up to £242.8 million whilst the club’s cash reserve (prior to the signing of Mesut Ozil for £42.5 million) stood at £119.7 million.
Arsenal’s Chairman, Sir Chips Keswick said: “It is my job to ensure we steer further along the course we have set. Despite fair play initiatives, the financial competition for top players remains intense.”
“We must continue to grow commercially to provide the club with the best opportunity to achieve success and we must do this in a way which remains true to our values and which ensures and protects the long-term sustainability of the club.
“We face a competitive landscape across the top of the Premier League and across Europe’s elite clubs, which is tougher than ever.
“Despite fair play initiatives, the financial competition for top players remains intense and transfer prices and player wages continue to move ever higher.
“It is therefore positive that the strong financial platform we have created in recent years allows us to continue to be competitive at the highest level.”
The increase in Arsenal’s financial firepower provided by the Emirates deal, worth £30 million a year, and an expected deal with a new kit supplier, leave Arsene Wenger in the privileged position of enjoying the support of the board in making further acquisitions, as confirmed by Sir Chips:
“With the Özil transfer I believe we have made a significant statement and when Arsène decides the time is right to invest again, Stan Kroenke, myself and the rest of the board will be delighted to support him.”
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