Arsenal look to be in very good shape financially, with both cash reserves and profits increasing markedly since last year. Is that the whole story, though?
It’s been quite a tough week for Arsenal, but today’s financial figures seem to have provided some good news. In the six months to November 2014, the club made £11.1 million before tax, even though they spent £94 million during the summer buying players. Their new sponsorship deal with Puma has given the club another £138.8 million in cash.
Can the recent on-pitch disaster against Monaco be balanced out by these impressive new financial figures? Whether they can or not, we’ve learned several things already from the numbers:
1. The Gunners have plenty of cash in reserve
Arsene Wenger loves to point out that his club have the ability to spend, and spend big, as and when they need to. Indeed, Arsenal’s current account is now way into the black. Their cash reserves are up from last year’s £120.6 million to a mammoth £138.8 million, despite transfer window spending of £93.7 million.
Manchester United, in contrast, are saddled with a debt of over £380 million – in that sense, Arsenal are half a billion pound ahead of their fierce rivals. That may be a slightly misleading comparison, but it’s worth making all the same.
2. Should Wenger be opening his wallet?
The Premier League’s mammoth new TV rights deal will begin after next season, with the 20 Premier League teams poised to share in truly enormous wealth.
Even the last-placed club will be closing in on an income of £100 million in prize money alone, and both transfer fees and wages are expected to rise even higher. There’s an argument that Wenger should get in before this happens and pick up a few new players at the current lower prices.
It sounds good, and doubtless finding Arsenal tickets available will get harder as demand continues to grow for a seat to watch the team play – but it will require a change in philosophy from the manager.
3. FFP is no problem, despite rising wages
As you can see if you think about the likes of the current QPR team, or the mess that was Leeds United in the early 2000s, unsustainable wage bills are very bad news. So why does Arsenal chairman Chips Keswick sound so pleased about having to pay Arsenal’s players more?
Although operating costs are now up to £126.2 million, from £113.2 million last year, Keswick holds that this demonstrates the club’s commitment to achieving greater things on the field. Importantly, the numbers also add up in terms of the UEFA Financial Fair Play regulations, as well as the Premier League’s own requirements.
And then there’s that new TV deal just around the corner…
4. Commercial success
Arsenal seem to be absolutely delighted with their new deal with Puma, taking every chance they can to talk about how positive the impact has been on their retail strategy. In fact, football-related turnover rose to £148.5 million from last year’s £135.9 million, largely because of that new kit sponsorship deal.
The club are also putting considerable effort into making a name for themselves abroad. Perhaps not to quite the same extent as Manchester United, but there are now more than 20 global partners, in countries as diverse as China and Indonesia.
5. Wenger has backed himself – and won
Although most Gunners fans are concerned with achievements on the pitch, off-field matters are hugely significant. Wenger played a big part in the move to the Emirates Stadium from the old Highbury ground, while maintaining the club’s crucial Champions League spot each season. Wenger’s mix of good football and financial pragmatism seems really to have paid off.
Some fans are admittedly unhappy with the results during the current season, given the amount spent, but Wenger is used to being patient in bringing young players through to maturity. The chairman referred to the likes of Hector Bellerin and Francis Coquelin in his statement, underlining the club’s policy of investing for the future.
6. How long will the board wait for success?
The one big unknown regarding Wenger’s future is demonstrated by a single line in Keswick’s statement: he points out that, despite good results and a balanced squad, the Gunners have still failed to reach a consistently excellent standard.
The end of the season is a surprising time to mention this. Still, the statement concludes with plenty of praise for the way Arsenal is run, so maybe the chairman is simply acknowledging fans’ concerns while maintaining his own authority.
