Arsenal are expected to announce record turnover figures later this month, making the club the world’s third richest behind Real Madrid and Manchester United. Turnover from the whole business has increased to about £225m. The figures for the year to May 31, 2008 will reveal record pre-tax profits of nearly £40m, while operating profit is expected to be above £50m. Arsenal is not a benefactor club and the results demonstrate the success of the Emirates stadium and the board’s policy of living within its means.
Arsenal are expected to announce record turnover figures later this month, making the club the world’s third richest behind Real Madrid and Manchester United. Turnover from the whole business has increased to about £225m. The figures for the year to May 31, 2008 will reveal record pre-tax profits of nearly £40m, while operating profit is expected to be above £50m. Arsenal is not a benefactor club and the results demonstrate the success of the Emirates stadium and the board’s policy of living within its means. Match-day revenue last season from 31 home matches was just a few millions short of £100m, while broadcasting revenues increased by £17m as the club benefitted from the enhanced Premiership television contract. Admittedly, the turnover figures include non-recurring property income, but more than £200m is expected to be delivered by the core football business. The wages-to-turnover ratio is expected to fall below 50 per cent, the lowest in the Premiership. However, the club is £245m in debt and has to service annual repayments of £24m so much interest will centre on its success in selling flats at Highbury Square. 91 per cent were intially sold, but some buyers are understood to have walked away forfeiting their deposits. The prediction of £350m from redeveloping Highbury may have to be adjusted downwards.