Arsenal enjoy 10% revenue boost

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Arsenal have overtaken Chelsea in Deloitte’s Football Money League thanks to a £26.2 million increase in commercial revenue during 2014/15.

The Gunners enjoyed a 10% increase in overall revenue last season (up to £331.3m from £300.5m) pushing them up to seventh in the European rich list standings one place above Sunday’s opponents.

Real Madrid (£439m / €577m) lead the table ahead of Barcelona (£426.6m / €560.8m) who usurp Manchester United (£395.2m / €519.5m) to second.

Manchester City, sixth, are the only other Premier League representative above the Gunners.

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As Deloitte explain, the increase in Arsenal’s revenue is predominantly down to the new and revised commercial deals with Puma and Emirates which, “helped boost the Gunners’ commercial revenue to over £100m for the first time, and represents a 66% increase over the last two seasons.”

Interestingly, although perhaps not surprisingly, the £100.4 million reaped from matchday revenue is higher than any other club in European football, despite the fact we played two fewer games at the Emirates last season compared to the year before.

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Broadcast revenue, £127.6 million, remains the club’s primary revenue stream comprising 39% of the total. With more money set to pour into the Premier League from new TV deals Deloitte predict that the Gunners will contend for a top five place in their Money League standing in the coming years.

Deloitte also reveal: “A record nine Premier League clubs are ranked within this year’s top 20, one more than in last year’s edition, helped by a 10% strengthening of sterling versus the euro. Premier League clubs now dominate the top 30, with 17 of those clubs having played in the Premier League during the 2014/15 season.”

You can read Deloitte’s full report, here.

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DodgeZA
DodgeZA

Considering the amount of work that’s gone into making those numbers, this is a great achievement!
COYG!

Tariq
Tariq

Onwards and upwards. COYG.

sixteen swans over ainola
sixteen swans over ainola

We could overtake both Bayern Munich and PSG next year (2016-17) as new commercial deals kick in and the considerable rise in Premier League money makes its impact. How nice would that be?

squiggle
squiggle

I’m conflicted. While I want Arsenal to have more money this also means the other PL teams have more money and I don’t really want to see them richer than foreign teams.

It also gives England’s PFMs the opportunity to crow about PL clubs earn their money, as if commercial deals were the result of morality (rather than being built on a variety of factors including many not so pleasant ones going back to the British Empire). I’d much prefer to see the likes of PSG and Bayern stomping all over Chelsea.

Still, not to worry too much. Signs point to most English clubs continuing to be profligate in their spending, meaning that some of their commercial power will be drained off to the advantage of Spanish, German, Italian, French etc. clubs in transfer fees.

sixteen swans over ainola
sixteen swans over ainola

It’s too early to tell just what the impact of new PL money will be. In the short term there’ll be the kind of spending power we’ve already seen with the likes of Stoke, West Ham, and Palace. And yes, it will translate into a more expensive transfer market. But remember, the PL product remains more-or-less the same and will compete with the Bundesliga and La Liga in exactly the same way. Which is why only the top four or so PL clubs will (continue) to benefit most from increased commercial revenue.

This is especially good for us because as long as we maintain our presence in the top four (PL), and because we lag behind the other top 6 European clubs in terms of non-TV commercial deals there’s considerable scope for us to improve our finances.

Winning the league will increase by 50% from 100M to 152M in 2016-7. Coming 5th will net that club 138M and no Champions’ League money (anything between 30M and 100M extra). So, we’re better-placed to compete in future transfer markets even against the likes of RM and Barcelona who’s domestic TV revenue will remain static.

Also remember that a strong pound and a weak euro means that we get extra spending power in foreign markets.

As for PSG and Bayern. BM is going to suffer regardless of all other factors with the loss of Guardiola. (We may even get Lewandowski and Gotze over here as a result.) But they are a well-run club and any dip in fortunes won’t last long. PSG’s future isn’t so positive. A change of leadership at UEFA, falling energy prices and demand, and little progress in the final stages of the CL doesn’t bode well. But then the same can be said of Man City and to a lesser extent Chelsea.

The thing is AFC are better placed than any other European club to increase revenues across the board. This should translate into more marquee signings or at least players of the calibre of Ozil and Alexis. But the most important factor here is the manager. We really do need to keep him for as long as we can because among the top flight only AW understands how all this works for the betterment of our club. He navigated us through the stadium build and he’ll navigate us through whatever comes next.

Le Jim
Le Jim

Arsene also seems particularly imports to me because, although I’m no money man, it seems that we can’t afford to risk a fall down the premier league table (such as United’s) at such a financially crucial time, regardless of how good the squad that Arsene leaves behind is.

Kevin
Kevin

I believe i read somewhere that Arsenal deal in euro, so I don’t think the pound/euro rate would matter in terms of our spending power versus other European clubs?

Crash Fistfight
Crash Fistfight

Considering PSG flagrantly flout the FFP ‘rules’ and their commercial revenue is a result of a BS sponsorship that isn’t based in reality (as is Man City’s) I assume that will have no bearing on the two clubs’ comparative abilities to buy players and pay their wages.

Good for us, though.

RSAGooner
RSAGooner

Manchester City is the only Premier League representative above the Gunners?

What about Manchester United in 3rd?

RSAGooner
RSAGooner

Never mind just saw “other” now.

*Puts coat over own head

neutral
neutral

I made the same mistake, fortunately read your post first

AlexP
AlexP

Let’s see what happens with all that money. I was never big on counting or ‘spending’ money that i don’t own.

Will it be reinvested into the club, will it be taken out by the owners? Those are the questions we might want the answers to…

I’m really curious how our scouting and player purchasing will be affected by new academy directors philosophy. He said he wants more players to be bought that would be on par or better than what we have so that Wenger can start working with them straight away.

Regardless, my support for the club is not influenced by how much or how little money it makes

jasom
jasom

Chelsea will fall behind even more down to the fact that they aint getting champions league football next year

Andre
Andre

Anyone got any data on where we were in the financial table before Wenger came along?

Smart-Arse
Smart-Arse

How have Man City got such high revenues? They’ve only got a 10 year history?

Crash Fistfight
Crash Fistfight

Made-up sponsorship deals with the owner’s uncle.

Danger Mouse
Danger Mouse

Good news. I wonder could they lend me a tenner. I’m a bit tight this week.

AN other
AN other

Once the new tv money starts rolling in. I can see top 4 being all English clubs In couple of ears time. However, all Man U and Arsenal revenues are actually try reflection of where the money is coming from. Chelsea, City, PSG and spainish clubs incomes look dodgy to me.

Never mind, atleast we will be flying high for years to come.

Serge Blanco
Serge Blanco

To all intents and purposes the top we end of the football hierarchy is divided into several levels. RM, Barca and Man Utd are the top table, capable of consistently high spending transfer window after transfer window. Next come PSG and probably Bayern whereas ourselves, City and Chelsea can spend big, but even City cannot go big all of the time. The big question mark over FFP abuse is City and PSG as neither have even a decade of success whereas Chelsea have been successful for over a decade so have developed into a big club albeit built by the now more circumspect Abramovich.

Jon
Jon

From the numbers, it looks like we compete healthily in both the matchday and broadcasting revenues – we lead all of Europe in match-day revenues and make more than 3rd placed Manchester United in broadcasting revenues (we obviously can’t compete with the spanish teams in that regard). HOWEVER, and this is a huge however, it has become apparent that we lag behind DESPERATELY in the commercial sphere. We made 138MM euros last year in commercial revenue. That is almost HALF of what fifth place Bayern Munich make and more than 100MM euros less than what our nearest EPL competition (MU) make in commercial revenues.

We have obviously made strides towards improving our standings with commercial deals involving PUMA and Emirates, but the general feeling is that we are still lagging behind. Man Utd’s kit deals with Adidas and Chevrolet, which put them at 122MM pound sterling a year, make us look idiotic in comparison. We make less than half of their yearly revenue at 60MM pound sterling per year for our deals with PUMA and Emirates (source: ESPNFC http://espn.go.com/espn/feature/story/_/id/13357293/english-premier-league-most-valuable-kits-2015-16)

I think something needs to be done about improving these deals, and that “something” starts on the pitch. It starts with the manager leading us to success on the field, in both the EPL and CL (FA cup doesn’t quite have the same ring to it). Fortunately for us, our destiny is in our own hands. IF we are improve financially, the club must first improve on the field in order to solidify our standing at the negotiation table.

James
James

Sadly it’s because United have been winning titles in the last decade which increases over seas popularity/sales.

They also have the largest fan base in the world. We can’t click our fingers and get more money.

Only way we can get as high as United is spend our money on the best players that people want to see and win more titles, then the cash rolls in and more supporters are inspired to watch.

You will notice the teams at the top are all clubs that win a lot.