The latest financial results for Arsenal show the club to be in robust financial health, even though overall profits dropped from £6.7m to £4.7m in a year in which there was little activity on the property front. Cash balances remain very healthy, up to £173.3m from £119.6m in 2013.
The latest financial results for Arsenal show the club to be in robust financial health, even though overall profits dropped from £6.7m to £4.7m in a year in which there was little activity on the property front. Cash balances remain very healthy, up to £173.3m from £119.6m in 2013.
Turnover increased from £280.4m to £301.9 and football related turnover was up from £242.8m to £298.7m. Football related profits before depreciation and player trading were up from £25.2m to £62.1. One healthy sign is that wage costs of £166.4m represented 55.7 per cent of revenue, down from 63.6 per cent in the previous year. This is not far from the 50 per cent figure recommended by accountants Deloitte.
However, total revenues are over £100m below those of major European competitors such as Barcelona, Real Madrid and Manchester United. The fact that the club has been more active in the transfer market is shown by a reduction in profits on transfers from £47m to £6,9m Nevertheless, there are still questions about whether the club invests sufficiently in players, especially to ensure sufficient cover in the event of injuries.