Financial Results

That time of year again.

http://www.arsenal.com/news/news-archive/arsenal-holdings-publishes-financial-results

RESULTS CONFIRM ARSENAL STRONGLY PLACED TO MEET UEFA’S NEW FINANCIAL RULES

Group turnover was £243.0 million (2011 - £255.7 million). Reduction was due to the expected
lower level of property sales activity.

Revenues from football increased to £235.3 million (2011 - £225.4 million) with Commercial
activities contributing £5.6 million of this growth.

Operating profit (before exceptional costs, depreciation and player trading) in the football
business was £32.3 million (2011 - £45.8 million) with revenue gains outweighed by increased
wage costs.

Profit from player trading of £26.0 million (2011 – loss of £14.6 million) with gains from a
number of significant player sales, including Cesc Fabregas and Samir Nasri, partially offset by
higher amortisation charges.

Low key year for property business with an operating profit of £2.2 million (2011 - £12.6 million)
as Highbury Square project draws to a satisfactory close.

Group profit before tax was £36.6 million (2011 - £14.8 million).

Cash and bank balances amounted to £153.6 million (2011 - £160.2 million) at the balance sheet
date and as a result the overall level of Group net debt was stable at £98.9 million (2011 - £97.8
million).

Commenting on the results for the year, Peter Hill-Wood, non-executive Chairman, said:

“We have invested in the team and in the Club’s infrastructure as a whole and this will continue.
UEFA’s new financial regulations have added a further emphasis to the need for a sound financial
model. That is why our activities to increase revenue are important. Increased revenues allow us to
continue to be competitive and to keep pace with the ever present cost pressures in the game.”

Ivan Gazidis, Chief Executive, said:

“Clubs, fans and other stakeholders in the game are demanding a more rational financial approach
and this reinforces our conviction that our Club is strongly placed to succeed over the long term. We
have qualified for the Champions League for the 15th season in a row whilst off the pitch we have a
business strategy and infrastructure that is helping us to grow our revenues. This revenue growth
will provide sustainable funds for future investment in the team whilst keeping within the UEFA
Financial Fair Play requirements. We can and will forge our own path to success.”

if only they were this smart with player transfers...

Oh well,

Excluding profit from player sales £65m and property profit of £3m, Arsenal actually made a loss of £31m before tax.

We still depend on player sales to run a sustainable model, until commercial deals improve and new PL TV deal starts.

this season will probably be the last time we sell players to balance books, Bendy, Denlison and Arshavin will sold. I think we have 2 more years left with Nike and Emirates Shirt Deal. Our Emirates Shirt deal is 1/4 of what Liverpool and the Manchester clubs earn and half of what Spurs earn.

right now we get 8m per year from nike and 5.5 from Emirates for shirt

We should get around 25m from new shirt maker deal and around 20m from new Emirates deal

it should be a 30mil + increase atleast

urbaNRoots wrote:Excluding profit from player sales £65m and property profit of £3m, Arsenal actually made a loss of £31m before tax.

We still depend on player sales to run a sustainable model, until commercial deals improve and new PL TV deal starts.

I think a lot of people fail to realise this until our current deals run out we rely on transfers to push us over the line for making profit each season.

urbaNRoots wrote:Excluding profit from player sales £65m and property profit of £3m, Arsenal actually made a loss of £31m before tax.

We still depend on player sales to run a sustainable model, until commercial deals improve and new PL TV deal starts.

this

2013-2014 will be when we shouldn't be worried about selling our stars to balance the book. Still wage structure & transfer target need some tweaking.

Emaharg wrote:

urbaNRoots wrote:Excluding profit from player sales £65m and property profit of £3m, Arsenal actually made a loss of £31m before tax.

We still depend on player sales to run a sustainable model, until commercial deals improve and new PL TV deal starts.

I think a lot of people fail to realise this until our current deals run out we rely on transfers to push us over the line for making profit each season.

So what you guys saying is Vermaelen, Jack, Carzola could be shipped out next summer?

When the frack does that Emirates shirt deal run out?

Sushi Master wrote:When the frack does that Emirates shirt deal run out?

2014 for both Nike and emirates shirt deal together they are worth 13.5mil per year. Less what pool and both Manchester clubs earn for shirt sponsor alone

If I'm not mistaken, these results don't include the £26mil from the Queensland Road development or the £35mil we received for Song and van Persie So while a loss of £30-odd million looks bad without player/property sales, we could've actually had more profit.

It's been like this for a while, of course. The main generator of profit for us has been player sales.

I can already see it in 2014:

Dortmund & German star Mario Gotze signs for English Champions Arsenal for a fee of £25m

GoonerJay29 wrote:If I'm not mistaken, these results don't include the £26mil from the Queensland Road development or the £35mil we received for Song and van Persie So while a loss of £30-odd million looks bad without player/property sales, we could've actually had more profit.

It's been like this for a while, of course. The main generator of profit for us has been player sales.

this is from last year so the new deals we signed in the summer with African and Asian companies aren't in it either. RVP+Song will be added to next years financials

I say we have one of Usmanov's companies or associates as shirts sponsor. Similar now Zenit/Gazprom and Citeh/Etihad have done it

SUPERCARTTS wrote:I say we have one of Usmanov's companies or associates as shirts sponsor. Similar now Zenit/Gazprom and Citeh/Etihad have done it

it will probably be emirates again, until our stadium name deal runs out.

http://www.dailymail.co.uk/sport/football/article-2212115/Arsenal-chief-Ivan-Gazidis-nets-2m.html

urbaNRoots wrote:http://www.dailymail.co.uk/sport/football/article-2212115/Arsenal-chief-Ivan-Gazidis-nets-2m.html

Their Premier League rivals have yet to file accounts for the last 12 months but London rivals Chelsea paid £2.155m to ALL their directors during the 2010/11 season. The highest paid – believed to be chief executive Ron Gourlay – received £917,000.



2m is nothing imo, he should get paid way more. Is not easy selling some of the best players in the world every year for profit and making the owner richer. Stan loves him after all Arsenal is only back up plan for Stan.

Legend wrote:

SUPERCARTTS wrote:I say we have one of Usmanov's companies or associates as shirts sponsor. Similar now Zenit/Gazprom and Citeh/Etihad have done it

it will probably be emirates again, until our stadium name deal runs out.

well let's see how Gazidis and co, work this one. Show us all exactly why you're getting paid top boy salaries for nothing..

Swiss Ramble ‏@SwissRamble 1h
Now that all the Premier League clubs have published accounts for the 2011/12 season, I’ve put together a summary of their financials.

PL highest profit before tax #AFC £37m, #Swans £17m, #NCFC £16m; largest losses #MCFC £99m, #LFC £41m, #SAFC £32m.



For PL profits after tax #MUFC benefit from £28m tax credits, so highest profits #AFC £30m, #MUFC £23m, #Swans £15m.



Half of the PL clubs (10 out of 20) made profits after tax in 2011/12: #AFC, #MUFC, #Swans, #NCFC, #BRFC, #WAFC, #WWFC, #CFC, #NUFC & #WBA.

PL match day: some big differences #MUFC £99m, #AFC £95m, #CFC £78m, #LFC £45m, #THFC £41m, #NUFC £24m.



PL TV revenue: Champions League impact is clear #CFC £113m, #MUFC £104m, #MCFC £88m, #AFC £85m, #LFC £63m, #THFC £62m



6 PL clubs relied on TV for over 70% of total revenue - even before new 2013/14 deal (#WAFC highest at 88%).



PL highest commercial revenue: #MCFC £121m, #MUFC £118m, #LFC £80m, #CFC £67m, #AFC £53m, #THFC £42m.



PL by far the largest profits on player sales made by #AFC £65m, then #CFC £29m, #AVFC £29m, #BRFC £23m, #EFC £14m.



PL highest wages: #MCFC £202m, #CFC £176m, #MUFC £162m, #AFC £143m, #LFC £131m, #THFC £90m, #AVFC £70m.



PL highest wages to turnover: #BRFC 92%, #QPR 91%, #MCFC 87%, #AVFC 87%. Lowest #NCFC 49%, #MUFC 50%, #Swans 53%.



PL highest other expenses: #MCFC £146m, #CFC £131m, #MUFC £113m, #AFC £110m, #LFC £100m, #THFC £65m.



PL #MUFC £437m and #AFC £253m have by far highest gross debt, followed by #BWFC £137m, #NUFC £129m, #AVFC £122m.



PL #AFC look better on net debt with £99m, leaving #MUFC out on their own with £366m.



PL highest net interest payable: #MUFC £49.5m, #AFC £13.5m, #AVFC £6.8m, #THFC £5.7m, #BWFC £5.6m.



#AFC have easily the highest cash balances with £154m, followed by #MUFC £71m, #CFC £17m, #NCFC £17m and #THFC £16m.



all via @SwissRamble

Rev wrote:I can already see it in 2014:

Dortmund & German star Mario Gotze signs for English Champions Arsenal for a fee of £25m

i dont think we need Goetze for 25 million if we are Champions...

Nice share eventhough i cant understand whether we are in a better position than last year..

That's a lot of cash in that last figure just sitting around...waiting to be spent

Arsenal Holdings plc has announced its financial results for the year ended May 31, 2013:

• Group profit before tax was £6.7 million (2012 - £36.6 million)
  
• Profit on sale of player registrations amounted to £47.0 million (2012 - £65.5 million)
  
• One-off charges related to the impairment of certain player registrations and associated costs amounted to £10.0 million (2012 - £5.5 million)
  
• £58.7 million of investment in new players and extended contracts pushed amortisation charges up to £41.3 million (2012 - £36.8 million)
  
• Turnover from football increased to £242.8 million (2012 - £235.3 million) driven mainly by commercial activity including the Club’s extended partnership with Emirates
  
• Taking account of increased costs, principally wage costs, operating profits (before depreciation and player trading) from football decreased to £25.2 million (2012 - £32.3 million)
  
• Property revenue rose to £37.5 million (2012 - £7.7 million) inclusive of the sale of the market housing site at Queensland Road. However, the Queensland Road sale was essentially at break even in profit and loss terms. Overall operating profits from property increased to £4.4 million (2012 - £2.2 million)
  
• The Group has no short-term debt and continues to have a robust financial platform from cash reserves, excluding the balances designated as debt service reserves, of £119.7 million (2012 - £120.1 million)
  

Commenting on the results for the year the Club’s chairman, Sir Chips Keswick, said:

“It is my job to ensure we steer further along the course we have set.

"We must continue to grow commercially to provide the Club with the best opportunity to achieve success and we must do this in a way which remains true to our values and which ensures and protects the long-term sustainability of the Club.

"We face a competitive landscape across the top of the Premier League and across Europe’s elite clubs which is tougher than ever. Despite fair play initiatives the financial competition for top players remains intense and transfer prices and player wages continue to move ever higher.

"It is therefore positive that the strong financial platform we have created in recent years allows us to continue to be competitive at the highest level.”

Read the full report here (PDF file)