Club announces financial results

Club announces financial results

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Arsenal have announced the financial results for the period ending November 30th 2013.

The key points are below:

  • Turnover from football increased to £136.0 million (2012 – £106.1 million)
  • Match day income increased to £45.0 million (2012 – £37.8 million)
  • Broadcasting revenue was boosted to £52.0 million (2012 – £40.1 million)
  • Commercial and retail revenues rose to £38.4 million (2012 – £27.7 million)
  • Operating profits (before depreciation and player trading) from football increased to £22.2 million (2012 – £4.4 million).
  • Operating profits from property amounted to £0.7 million (2012 – £1.9 million).
  • Profit on sale of player registrations amounted to £6.1 million
  • Group loss before tax was £2.2 million (2012 – profit of £17.8 million).

The club has also announced that it has no ‘short term debt’ and that ‘ash reserves, excluding the balances designated as debt service reserves, amounted £120.6 million’.

In the Chairman’s statement, Sir Chips Keswick touched on new commercial revenue, saying, “We also have significant momentum off the field in terms of growing our revenues. The financial results for the first half of the year, which are considered in more detail in the Financial Review section of this report, show that the Club has recorded significantly increased revenue across each of its key areas of activity – match day, broadcasting and commercial. This is excellent news.

“You will have seen last month’s announcement of our new partnership with PUMA. Whilst I am unable to state the figures publicly, it is fair to say this is the biggest partnership agreement the Club has ever completed.

“The financial impact, in terms of profits and cash-flow, will not begin to be realised until the start of the next financial year but it will clearly provide a further significant boost to our income and further strengthen our financial position.

We are delighted to welcome PUMA to the Arsenal family and we look forward to a successful partnership.

“The fact that PUMA intend to use Arsenal as one of their primary assets around the world will undoubtedly help with our ambitions to grow the Club’s profile on a global basis. We all look forward to seeing the new kits when they are launched in July.

“In addition to Puma, we have also welcomed Gatorade, Huawei, Cooper Tires Europe, Lanvin and JEANRICHARD to the Club as global partners and BT Sport as a regional partner.

“We believe we are in a strong position to take the Club forward both in the short term and beyond and to deliver future on-field success.

“Our majority shareholder Mr Stan Kroenke, myself and the rest of the Board, our manager and all our staff are clear in that aim.”

 

64 COMMENTS

  1. Can we spend some of this profit to put our boot in Jose’s mouth? I reckon a few quid on a reinforced steel capped boot should do the trick.

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      • You need to look at cash flow. The “Loss” includes depreciation which is a non-cash expense. I hate to sound like one of those you don’t know what your talking about people, but seriously, you don’t know what you’re talking about.

        Operating profits (before depreciation and player trading) from football increased to £22.2 million (2012 – £4.4 million).

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        • He is responding to a comment where the guy says we need to use our profit, you are the only one talking about cash and in a condescending way. It is a good point to point out that we actually made a loss, given all the hype about being rich.

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        • Hey, Wolf of Wall Street, he’s just reading whats on the screen.

          During all your nonsensical talk about “cash flow” and “depreciation,” you overlooked that the 22.2 million figure was before counting player trades — where we went into the red this season. Paying for Ozil was surely a cash expense, unless Real Madrid accepted 42 million in beer vouchers. Please just shut up and stop trying to talk down to people.

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  2. Almost too afraid for the reaction to this to even read the responses. Anything regarding our financial state just gets turned into a stick to beat Wenger with. This from people who, like me, for the most part don’t understand shit from these financial reports.

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  3. Can someone translate this article into ‘how much do we have to spend in summer?’. Oh and also what is ‘group loss before tax’ – is this net profit(loss)?

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    • Yes it’s a loss before taking into account new PUMA and Emirates deals.

      “How much we have to spend” depends solely on how much the board are going to allow which can be based on a variety of reasons that mostly will be kept to themselves, anyway.

      Of course Arsene can ask for this and that but at the end of the day I doubt the Arsenal board will be very generous because they sound like they measure success only through dollar, pound and euro signs. Us winning trophies is secondary to them, although that in itself should make an immense different in our revenues.

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      • How did we make a loss? I mean, what the fuck have we been spending it on? Wages, I’d guess, but, seeing as we’ve dumped a lot of the so-called dead wood, I’m surprised they have increased by so much.

        Interesting the club haven’t chosen today to announce Wenger’s new deal. Seems like he’s still stalling, though whether as a PR move or the result of genuine uncertainty, who can say.

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        • Of course the real interesting thing is to consider that if WE are losing money with our manager and our transfer history and our stadium and worldwide support, what the fuck are City and Chelsea losing year on year?

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        • ozil money is included so we made just 2.1 million after spending 42 million for ozil ,also 30 million less from property and selling not a single star player. so it is a huge achievement, now we will get the broadcasting money from UCL and EPL, hopefully we will make a good profit and Arsene n the board allow us to make some transfers

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        • What you’re saying – which I agree with – is that it’s not possible to make money out of owning a football club. Pity no one explained this to Kroenke before he decided to jump on the Glazer bandwagon. It doesn’t matter to Chelsea’s and City’s owners that their clubs are run at a loss because making money was never the objective in the first place. So long as their clubs are bringing them pleasure/prestige, the balance sheet doesn’t matter a fig.

          For years Arsenal fans have been hopefully claiming that the sugar-daddy owners will quickly get bored, leaving their playthings to implode in a puff of black smoke. Seems to be taking a long time to happen. The profiteering owners, by contrast, because they are mostly significantly poorer and are only in it for the revenues, are in a much more precarious position. United with its massive commercial revenue built up over the decades is probably rich enough to survive even Moyes, but as for the rest of us, God only knows. How are we supposed to generate not just enough income to sustain ourselves without any input from our owner, competing with the sugar-daddy clubs who can spend without limit, but eventually to sustain the owner as well? Hicks and Gillett saw the writing on the wall pretty quickly. Kroenke has been slower. He’s been lucky in Wenger, of course – and he knows it – but it will be very interesting to see how things pan out when Wenger decides to call it a day. What proven and ambitious manager would fancy the task? What unproven and unambitious manager would be able to keep us in the top four?

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        • @Nafis – Only £2.1m of Ozil’s £42m fee would’ve been accounted for in that profit figure and not the whole whack or even the first installment. That’s based on the first three months of a 5 year deal. This doesn’t include however his signing on fee (which I’m not sure is amortised..?), agent fees and wages – but of the the £42m only £2.1m will be on this reported in this loss of £2.2m.

          We do certainly have money to spend but I think people are too quick to believe and repeat the highest potential ‘war chests’ they hear, due to the politics of this emotive subject… and I’m already hearing people reference £120m when that’s not really realistic. I think we were only able to spend £42m on Ozil precisely because we have been so frugal over the past few years and the club – despite ticket prices, which I contribute to with my STs (even though I have to then loan them out due to the cost) – is not the mammoth profit making machine that most seem to think it is. We’re getting there with the new commercial deals though and I’m more confident than ever (post Ozil) that we will spend when Wenger identifies the right talent. We didn’t in January and that’s a shame but it’d prefer that than wasting it and not being able to spend it on the Ozils later.

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    • 200mil euro apparently turned down. I don’t think all our assets in the world will even measure up to that, including all of our players’ values.

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      • He is the best player around but would anyone really want to spend that much money on him when they could buy 4 other ‘top’ players and not cr4p ourselves every time a tackle came flying in.

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  4. Imagine if we do win the league or the FA cup what other lucrative deals that would bring in #sighs reality check top 4 is a trophy

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  5. Isn’t Mourinho correct? Arsenal well happy with cash…quite content to be ticking along in 4th….glorious, glorious failure.

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    • Well currently we are failing in our expected glorious failure. We have only maintained a top two position for the past 5 months. God knows where this club is headed to.

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    • Ignore Moan’rinho. The man has no class, just money.
      So much money (both in work and personally) that he’s lost track of reality.

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  6. So im guessing with all the players we sold in the summer Ozil technically was bought with the money and his wages is covered by the free up of wages from dead wood players..

    So have we technically spend any money on players that aint from the back of player sales??

    Arsenal are literally in the money I had the song “im in the money” playing in my head while reading these financial results…

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    • The only significant transfer fees received were a total of about £10m for Gervinho, Chamakh and Mannone. Add in a couple of million for the loan fees of Djourou and the rest, and that’s still £30m short of what they paid for Ozil.

      His wages were certainly more than covered by players leaving.

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  7. So with the new sponsorship deals and these amazing increase in financial results and the big cash reserves why couldn’t we pay for a new striker in the summer?

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    • The sponsorship deals don’t kick in until the summer. Wait for the next half-year results announcement, you’ll se a profit then.

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    • Liverpool refused to sell Suarez, and allegedly Real Madrid upped their price for Higuain once Napoli showed an interest – they were quids in after selling Cavani, so Madrid knew they’d overpay his value, as they were more desperate for a replacement than we were for competition to Giroud.

      The only other major strikers on the move were Cavani and Falcao, who both went to clubs that would pay over the top on fees and wages.

      We could pay for a striker, we just couldn’t find one at a realistic price.

      Wenger clearly wants a striker, and the summer market is when he was always most likely to make a move for one. The likes of Diego Costa, Jackson Martinez, etc. wouldn’t be available in January, as they are more valuable to their clubs at the moment, and they know that they could still get the same fee by waiting a few months – not that he would necessarily buy one of them, though I wouldn’t mind if he took a punt on Martinez.

      Then again, Wenger’s transfer business is a law unto itself, so he may just buy an attacking midfielder to add to his collection, and get an injury prone teenage striker from the French second division – there surely can’t be many left of those.

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  8. er… so annoying instead of thumbing down my comments why not explain why im wrong..

    This site and its rating system does my head in

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  9. Can we use some of the Puma money to have Jose mourinho’s shit pipe redirected out through his anus? What gale force cunt.

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    • I be happy if we just paid a surgeon to remove his vocal cords. If he can’t speak he’ll go from being a complete and utter cunt to merely being totally obnoxious.

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  10. er.. have seen what Mourinho said about Arsene… shocking! why did he go that personal I don’t know I think he went on the offensive.

    There should be a headline on it.. id love to nkock mourinho out tbh

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  11. Better get a deal broker in to the head office of Brasso. Going to need a lot of polish for all the trophies coming in the next few years. I mean, that CL trophy alone is fucking massive.

    Bayern who you say? Pah!

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  12. Mourinho is a prized cunt who’s name isn’t worthy of being on these blogs. Fuck him and fuck the arse licking journalist hack wankers who fawn over his every word like mewing Japanese geishas.

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  13. Funny how I find that my FM playing increases as my displeasure with the team ebb’s and flows. I haven’t touched the game for months…but, our recent play, lack of activity to strengthen a team that looks like a Pear, with thick legs sticking out the bottom. Little up top and fat in the middle propped up on two sturdy legs, with a big Pol hanging in the middle. I would appreciate nothing more than two wins Sun and Wed!

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  14. Not at the moment. But 2 years ago it was RVP (gobs on floor) and last year it was that midget fella for $ity. He’s fucking unplayable at the moment but that won’t last forever. I’d sign him in a heartbeat though. Even though he is a complete twat.

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  15. We’re in a decent position financially. We can’t really compete equally with the Toy clubs but we can at least give it a go.

    Always wondered why fans don’t yet have a chant for City/Chelsea. I’ve just come up with a very simple one that, I think, would be nice.

    SHIT PLASTIC TOY CLUB
    YOU’RE JUST A SHIT PLASTIC TOY CLUB
    SHIT PLAAASTIC TOYYYYYYYY CLUB
    YOU’RE JUST A SHIT PLASTIC TOYYY CLUB

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