Arsenal announce full year financial results – appear to have lots of cash

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Arsenal have announced their full year financial results, coincidentally just before kick-off of tonight’s Europa League game against BATE Borisov.

The key points are:

  • Turnover from football increased to £422.8 million (2016 – £350.6 million) with strong growth in broadcasting supported by commercial activity. First time Club’s football revenues have exceeded £400 million.
  • Overall Commercial revenue growth for the year of 10% led by an additional £5.9 million from secondary partnerships.
  • A third successive year of increased cash investment in the squad is reflected in higher amortisation charges and higher wage costs.
  • Wage costs rose to £199.4 million (2016 – £195.4 million) and represented 47.2% (2016 – 55.7%) of football revenues. Year on year comparison is distorted by there being no players’ Champions League qualification bonus in the 2016/17 figures.
  • Amortisation charge on player registrations rose to £77.1 million (2016 – £59.2 million).
  • Limited transfers out activity – the profit on sale of player registrations amounted to £6.8 million (2016 – £2.0 million).
  • Quiet year for the Group’s property business with a contribution to pre-tax profits of £0.2 million (2016 – £2.0 million).
  • Group profit before tax was £44.6 million (2016 – £2.9 million).
  • Tax charge for the year of £9.3 million (2016 – £1.2 million) reflecting a balance of higher taxable profits and lower rates of UK corporation tax.
  • The Group has no short-term debt and its cash balances, excluding the accounts designated as debt service reserves, amounted to £144.3 million (2016 – £191.1 million). The reduction follows a Club record net cash outflow on player transfers of £102.5 million (2016 – £54.2 million).
  • The liabilities for player acquisitions are, in part, payable in instalments and the outstanding net amount due to vendor clubs was £42.7 million (2016 – £42.5 million)

Chairman Sir Chips Keswick said, “The club’s 13th FA Cup win was some compensation for the disappointment of dropping out of the Premier League’s top four for the first time in 20 years. This summer we have again moved to strengthen the squad and we are optimistic about the season ahead.”

Read the full report here.

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