Arsenal has announced record profits of £56m before tax. Turnover is up to £379.9m. This record of financial success contrasts with the situation at Liverpool and Manchester United, but it is largely due to the club’s property business. The football business just covers its costs.
Arsenal has announced record profits of £56m before tax. Turnover is up to £379.9m. This record of financial success contrasts with the situation at Liverpool and Manchester United, but it is largely due to the club’s property business. The football business just covers its costs.
Most of the contribution on the property side came from the Highbury Square development on the old ground. 85 units remain to be filled but the property business is now debt free and generating a cash surplus. £157m of revenue came from property, allowing £131m of bank loans to be paid off. Net debt is now down to £136m which is sustainable.
Turnover on the football business was marginally down because of fewer matches and some recession effects on the corporate side. A profit of £13.6m net was made on player sales. Wages accounted for 50 per cent of turnover which is a much better figure than the Premiership average, although they did edge upwards from £104m to £117m.
The question now must be whether this financial success can be translated into trophies on the pitch.