Arsenal saw pre-tax profits drop 81.7 per cent in the 12 months to the end of last season, yet the club remains in a strong financial position due to rising revenues and falling debt.
Earnings before tax were down to £6.7m in the year to 31 May, down from £36.6m. The club pulled in a reduced profit from player sales – £47m, down from £65.5m – while wages climbed 7.7 per cent to £154.5m.
Arsenal saw pre-tax profits drop 81.7 per cent in the 12 months to the end of last season, yet the club remains in a strong financial position due to rising revenues and falling debt.
Earnings before tax were down to £6.7m in the year to 31 May, down from £36.6m. The club pulled in a reduced profit from player sales – £47m, down from £65.5m – while wages climbed 7.7 per cent to £154.5m.
The reduced profit occurred despite making £47m from selling Robin van Persie and Alex Song. The sale of the two stopped the club from falling into losses for the year to the end of May, encompassing a season without trophies.
Arsenal, one of the only Premier League teams to report regular profits in recent years, cut its squad significantly this summer, getting rid of several unwanted but highly-paid players. Football-related revenues grew to £242.8m, from £235.3m, while the club continues to make money via the property developments that stem from its move to the Emirates stadium in 2006, bringing in an extra £37.5m through this route.
Cash balances remained just over £153m for the period, as net debt fell to £93.2m on gross of £246.7m. The figures do not cover the recent £42.5m record purchase of star midfielder Mesut Ozil, an acquisition which lifted the mood of Arsenal supporters. In what is a more open Premier League competition than usual, Arsenal currently top the table.
Even taking the £42.5m signing of Özil into account and the reserves required to fund the business, the Arsenal Supporters’ Trust believes Arsène Wenger should have up to £80m to spend over the next two transfer windows. That financial firepower is underlined by the expected contribution of new commercial deals with Emirates and a new kit supplier (expected to be Puma), the full effects of which will not be seen until this financial year.
The club’s chairman, Chips Keswick, said manager Arsene Wenger would be given more money to invest. ‘With the Ozil transfer I believe we have made a significant statement and when Arsene decides the time is right to invest again Stan Kroenke, myself and the rest of the Board will be delighted to support him,’ Mr Keswick said.