Is it better to have plenty of money in the bank or use that money to enhance performance on the pitch? That is the eternal dilemma at Arsenal and it is one that continues to exasperate the clubs’ fans. One comment after the latest financial results was that they had produced at least one good result this week.
Is it better to have plenty of money in the bank or use that money to enhance performance on the pitch? That is the eternal dilemma at Arsenal and it is one that continues to exasperate the clubs’ fans. One comment after the latest financial results was that they had produced at least one good result this week.
Arsenal have almost £200m in the bank after making an increased profit of £25m last year, the club’s latest accounts have revealed. The figures, covering the year ending 31 May 2015, show the Gunners spent a record £114m on new players, although some of this is payable in instalments. Wages account for 58.4 per cent of revenue, not far in excess of the recommended 50 per cent level.
But they have been criticised by some fans for only making one signing, that of keeper Peter Cech, over the summer.
The response of chief executive Ivan Gazidis to those criticisms was that the cash reserves of £193.1m are intended to cover costs for a full season and are not solely designated for player transfers. But one would have thought that those costs would be covered by revenue which continues to increase.
However, the Arsenal Independent Supporters’ Association insists that the strong
financial figures must be matched by positive results on the pitch. They accept that the club is well run, but AISA chair Lois Langton said, ‘The financial figures will only add fuel to the fire for those calling for
further squad investment’.
Profit before tax was £24.7m, up from £4.7m in 2014, while the club say they have no short-term debt. The cost of the move to the Emirates is met by a long-term fixed interest bond which costs £35m a year.
Total turnover was £344.5m – an increase of £42.6m from the previous year. This was boosted by a new kit partnership with Puma.
The author of the Swiss Ramble blog has produced an in depth analysis of Arsenal finances. As usual, his analysis is careful and authoritative. His conclusion is that the club are not using their resources as effectively as they could to secure success on the pitch.