Arsenal released their first financial results under full ownership by Stan Kroenke. After posting big profits the previous season, the club’s 2018/19 accounts show a large loss which should worry fans.
Arsenal Financial Results Shows Major Loss
Stark Financial Losses
The key takeaway from the club’s accounts is that Arsenal posted a loss of £19,011,000 after taxes. This figure contrasts starkly with their 2017/18 post-tax profits of £83,887,000. A drop in club revenue from £388.6 million to £367.5 million can explain some of that.
The main reason for this drop is the lack of player sales. In Arsene Wenger’s final season in charge Arsenal sold a plethora of players such as Theo Walcott, Olivier Giroud and Francis Coquelin.
Another reason is the fact that season ticket renewals did not occur at the usual time. That renewal window got pushed back due to the club’s involvement in the Europa League final at the end of May 2019.
Of course, the loss is offset somewhat by commercial revenue and broadcasting right, as well as the extra money for reaching the Europa League final.
Meanwhile, operating costs did increase due to investment in player wages. Staff costs rose from £218.9 million in May 2018 to £227.3 million in May 2019.
Not Quite All Doom and Gloom
The Arsenal financial results aren’t all doom and gloom. The club has retained £107 million in cash reserves to fall back upon, plus season ticket renewals will be reflected in the current season’s accounts.
Plus, the new commercial deals with Emirates and Adidas did not kick in until 1 July. These two new deals are worth more than in previous seasons with the Adidas kit agreement sending an extra £60 million to the club’s coffers each year.
Still, with the club struggling on the pitch and now seemingly even off it, these facts will be of little comfort to the fans.
Big Picture
These account are for Arsenal Football Club Public Limited Company which is in turn owned by Arsenal Holdings Limited, the entity which owns all of the club and its assets. Of course, that company is itself owned by Kroenke Sports and Entertainment.
Arsenal Holdings Limited has yet to publish its accounts. Under UK law, they will have to do so by 29 February 2020 and it is then that fans will get the total story on their club’s financial health.
Main Photo
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