Ivan Gazidis believes Arsenal’s financial model leaves them well placed to achieve long-term success after the club announced a profit of £36.6 million for the financial year.
Reflecting on the latest figures, the CEO spoke bullishly about the Gunners responsible attitude towards their finances while also making clear that winning trophies, while adhering to UEFA’s new Financial Fair Play rules, is still very much on the agenda.
“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,” reads his statement.
“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.”
Chairman Peter Hill-Wood added:
“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.”
The key figures
- Group turnover was GBP243.0 million (2011 – GBP255.7 million). Reduction was due to the expected lower level of property sales activity.
- Revenues from football increased to GBP235.3 million (2011 – GBP225.4 million) with Commercial activities contributing GBP5.6 million of this growth.
- Operating profit (before exceptional costs, depreciation and player trading) in the football business was GBP32.3 million (2011 – GBP45.8 million) with revenue gains outweighed by increased wage costs.
- Profit from player trading of GBP26.0 million (2011 – loss of GBP14.6 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 GBP2.2 million (2011 – GBP12.6 million) as Highbury Square project draws to a satisfactory close.
- Group profit before tax was GBP36.6 million (2011 – GBP14.8 million).
- Cash and bank balances amounted to GBP153.6 million (2011 – GBP160.2 million) at the balance sheet date and as a result the overall level of Group net debt was stable at GBP98.9 million (2011 – GBP97.8 million).
More to follow…