Arsenal FC: Behind the Numbers

Arsene Wenger to recieve larger transfer budget in the future?

Part II of a Special Report

By Triplec1988, proud member of TheGoonerForum

As we discussed two weeks ago, Arsenal Holdings, through wise investments and short-term sacrifices, has laid the foundation for greater long term growth and financial stability.  The transition from Highbury to The Emirates has resulted in a doubling of match day revenue for the 2006/2007 season.  Furthermore, the development of Highbury Square and surrounding properties owned by the group are poised to provide Arsenal Holdings with greater long-term revenue.  The development of Highbury Square is expect to yield around £300 million with the group stating in their year end financial report released in September 2007 that over 90% of the units have already been sold with the revenue from this development expect to be on the books for the next financial report to be released in September of this year.  The smart refinancing package that the group complete two seasons ago consolidated bank debt into around £260 million of long term bond debt with a combination of low fixed and floating interest rates, giving the group greater flexibility in servicing its debt.

The half yearly financial report that covered the group’s finances from the May-November 2007 reaffirmed the sound financial base and potential for greater growth that the group outlined in the 2006/2007 report.  The half yearly report noted that profits had risen by £20 million before taxes.  Revenue for broadcast was up as Arsenal and the Premier League gain more popularity over seas.  Furthermore, The launch of Arsenal TV in January 2008 in association with Setanta Sports is expected to increase broadcasting revenue even more.  The move to the Emirates is also progressing nicely.  International friendly matches and two Bruce Springsteen concerts will net the group a healthy return.  The Emirates Cup has also been highlighted as an added source of revenue as the group reported that as of November 2007 match day revenues were already an astounding £41.4 million, with that number clearly expected to rise with the release of the next year end financial report due in September.
So what does all of this mean for the average fan?  We can expect revenues to rise and debt to fall leaving the club with greater disposable income in the long run to use for wages and transfers.  Since Arsenal’s debt is revenue generating and held over the long term, short term fluctuations in economic patterns will not effect the long term potential of the club and over a long enough time line the move to the new stadium will pay for itself resulting in greater power in the transfer market as well as a great ability to reward success players for outstanding seasons.  This will help further cement Arsenal as a global football powerhouse able to compete financially with any club in the world without fear of future debt and possible bankruptcy al la Manchester United.  So while we might yell at the papers and scream at the websites now over the perceived weakness of the club in the transfer market or our supposed inability to hold in to key players, in 3-5 years time the full effect of the move will start to iron themselves out and a new era will begin in North London.  So cheer up Gooners, the sun is just starting to rise over the Grove.
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6 Responses to Arsenal FC: Behind the Numbers

  1. Stuart says:

    Not sure that Aaron Ramsay is going to make the difference next season. He may help but playing in the PL is going to be a whole lot different to the Championship.

    Nasri, if he signs, is another matter. He reminds me of Bob Pires in the way he runs and he likes a shot, too.

  2. Mike A says:

    Great article. I also pay close attention to the financial side of things. When you look at the facts, our club is growing ever stronger off the pitch and it’s only a matter of time before this translates into trophies.

    I see it as vital that the club becomes as wealthy as possible because I have no doubt that Arsene’s eventual successor will want and will need much larger transfer funds than is currently possible in order to keep us in the top 3. I won’t be at all surprised if there are a few mega signings in the next few years.

    We have a great future with our youth and with the big signings to come.

  3. Mattc says:

    Has anyone noticed the increasingly stifling prices of cheeses?

  4. grekigal says:

    The Corporation McDonald’s Corp. temporarily removed from the ingredients of their sandwiches in the U.S. tomatoes. This is due to the risk of acquiring these vegetables salmonellosis. Tomatoes will cease to be in a sandwich until American authorities have not identified the source of infection, reported the official representative of McDonald’s Denmark Praud. At the same time, a network of fast-food restaurants continue to put small cherry tomatoes in salads, because cases of salmonellosis infection after using them for food fixed.V not currently due to contamination of salmonellosis in 16 American states, hospitalized for at least 23 people. The Office for quality control of foodstuffs and medicines USA (FDA) identifies the source of disease. According to preliminary data, the source of contamination could become some sort of tomatoes. During his negligence, he demanded compensation of $ 10 million McDonald’s Corp. is the world’s largest network of fast-food restaurants, it is represented in more than 100 c
    ountries around the world. The network has 30 thousand restaurants and daily serves more than 47 million visitors. Net profit corporation in I quarter of 2008, grew by 24% – up to U.S. $ 946.1 million, revenues increased by 6% and amounted to $ 5.6 billion.

  5. Almac says:

    Yes, yes I have, and like parmesan, it stinks.
    Good article, don’t understand all the doom and gloom rubbish put out by some supporters, this club is on the up. next five years will be very exiting

  6. John says:

    Everything legit and above board. No sugar daddy’s – just good business. It definitely holds us in good stead for the future.

    Everything that comes to us down the road we will know was earned rather than bought and that’s something as fans we should be very proud of.

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