Arsenal have written off £5.5m in their accounts to cover the wages of transfer disappointment Park Ju-Young. He was signed from Monaco on deadline day in the summer of 2011 but scored just one goal in six appearances last season.
He has been sent off on loan to Celta Vigo for a one year, but a £5.5m ‘impairment fee’ in Arsenal’s recently published accounts is thought to relate to him. This had the effect of reducing Arsenal’s profits for the last financial year to £36.6m, but it gets them extra leeway in relation to Uefa’s financial fair play rules.
Arsenal have written off £5.5m in their accounts to cover the wages of transfer disappointment Park Ju-Young. He was signed from Monaco on deadline day in the summer of 2011 but scored just one goal in six appearances last season.
He has been sent off on loan to Celta Vigo for a one year, but a £5.5m ‘impairment fee’ in Arsenal’s recently published accounts is thought to relate to him. This had the effect of reducing Arsenal’s profits for the last financial year to £36.6m, but it gets them extra leeway in relation to Uefa’s financial fair play rules.
Arsenal are in no danger of breaching these rules and indeed have made a point of emphasising that their prudence will pay off for them in the long run. However, it is an extra precaution against any financial challenges, rather than having Park’s wages show in the accounts for each of the next three years.
Financial analysis carried out by the Arsenal Supporters’ Trust (AST) shows that despite a wage rise of £19m in the previous year, Arsenal have around £42.5m free cash. With television revenues set to rise next year, it may not be long before Arsenal’s turnover exceeds £300m a year (it is currently £243m).
Arsene Wenger could make two marquee signings in January if he could identify suitable targets available at a realistic price. AST believe that Wenger could sign two players at transfer fees of £25m each and give them six figure contracts if he so wished, providing Arsenal continue to qualify for the Champions League.