Arsenal Financials


#183

Arsenal have cash reserves of £137.6m excluding debt service reserve balence at half year

“Arsenal record a profit of £25.1m up from £12.6m for the half year”

“Club shows approx 8% increase in commercial growth. From £40m to £43m circa for 6 months”

Profit on player sales was £58.4m

That’s great, we’re making loads of money.
Shame we’re having our worst season under Wenger.

Wages costs have increased by £13.2m

How can this be right?
They can’t have included the wages we are saving, after selling, Walcott, Chamberlain, Coquelin, Gabriel etc.


#184

January Ins and Outs are not considered yet.


#185

Conquelin and Walcott won’t be included in that


#186

As usual, profits>>>trophies.


#187

I thought that must be why.
I also forgot Sanchez as well.
Since this time last season we have certainly got at least 4 or 500k off the wage bill.
I know Mkhitayran and Aubameyang have come in and Ozil has got more money but even that doesn’t account for the discrepancy.


#188

Half year accounts run to the end of November.


#189

Ooooh massive massive profit of 25m

Laughable

Won’t even get Fabian Delph at this rate.


#190

You don’t buy players with profits only. Just saying.


#191

yup we can use magic beans too hehe


#192

Obviously timing and other factors are major in this and since it is “half-year” analysis - kind of BS anyway, but these two numbers stick out like sore thumb:

Arsenal Profit: 25 million

Profit on Player Sales: 58.4 million

I have to assume that the timing of certain revenue plays massively into this bc otherwise we took a bath other than for our profit on player sales.


#193

I agree.
Whatever way they calculate those profit figures, it doesn’t look great.
I can only assume that not qualifying for the CL is a big factor.

Considering we are supposed to be one of the biggest profit making clubs in Europe, we’re not making much of a profit.
Selling players seems to be our biggest income.


#194

A good chunk of the difference is basically an accounting trick. Player amortisation of 35m which is just asset write down and not actual spent money.


#195

Are you sure? 35m of amortisation sounds like Xhaka.


#196

and that, folks is why Wenger is gone. Kroenke’s aren’t sentimental. Wenger was making the money, now he is spending it and results are worse.

No CL money for a 2nd year in a row. They won’t be happy with that.


#197

But there are also other accounting tricks going on the other side… (e.g., cap spend get spread out).

Its true cashflow is hard to discern from all this, especially in half-year data. I would probably say that looking at our cash balance helps in assessing… I honestly don’t remember how it has trended, but I think it IS lower than before.

Also, SwissRamble has shown in the past that our margin for profit really isn’t as high as we’d like, and is definitely hurt a lot by lack of CL.


#198

The accounts say we had 100m at this point in 2016 but 137m in 2017. That’s after what we hold for debt reserve.


#199

Is he?


#200

We can definitely spend more, but it is true that our net spend on transfers as well as wages is a lot higher over the last 4-5 years.


#201

Yes. We’ve spent heavily on incomings since 2013 with few major outgoings to compensate. It was only in the last window we generated transfer income through the sales of Theo and Giroud.

Ultimately the money spent by Wenger in proportion to the results over the last couple of seasons will be the thing that pushes the board to get rid of Wenger


#202

Are we pulling a Leeds, Portsmouth, Rangers yet?