Arsenal are set to release their interim financial results shortly which will cover the period June – November 2010. According to the Arsenal Supporter’s Trust we could well see the club post a loss for the first time in a long time. There are five main contributors to this:
1. No major players sales in the summer – in previous years we’ve earned big on Adebayor, Toure, Henry, Hleb etc. This time only Eduardo left the first team squad. The £56m profit from last year included £38m from player sales.
2. Improved contracts - 17 player contracts have been improved and the wage bill has increased by £7m
3. Property deals done – a projected £4m profit on sales of Highbury Square flats and only the Queensland Road site remains. This is likely to be sold within 12-18 months
4. Commercial income static – Arsenal’s sponsorship deals, tied in with the new stadium, mean we earn far less than many of our competitors and commercial income has stagnated. However, reviews of sponsorship deals are being looked at as is the prospect of a foreign tour this summer.
5. Timing – as we play more fixtures, and more high profile fixtures, in the second half of the season, match day and TV revenue is greater in that period.
Now, that might all sound bad, but it’s merely an explanation as to why these results will be posted. The fact that we didn’t sell a major player this summer could easily be seen as a positive, for example, and hints at a greater underlying financial strength.
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