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What is Arsenal's current financial position?
Posted Monday 13th July 2015
What is Arsenal's financial position in this transfer window?
The following estimate was produced by AST Board member Simon Hill and discussed at the most recent AST meeting.
It is a simplified overview of Arsenal's accounts in a table format. The figures are drawn directly from the club's accounts containing the full year to 31 May 2015 (announced late September 2015) and 31 May 2016 figures being AST estimates.
|
£millions |
Yr to May 14 (Actual) |
Yr to May 15 (Estimate) |
Annual increase (Est. to May 15) |
Yr to May 16 (Estimate) |
|
|---|---|---|---|---|---|
|
Revenues: |
|
|
|
|
|
|
Matchday |
100 |
98 |
-2% |
100 |
|
|
Broadcast |
121 |
121 |
0% |
130 |
|
|
Commercial |
59 |
78 |
32% |
80 |
|
|
Retail |
18 |
22 |
22% |
22 |
|
|
Player loans |
1 |
1 |
|
1 |
|
|
Football revenue |
299 |
320 |
7% |
333 |
|
|
Property |
3 |
0 |
|
0 |
|
|
Total revenue |
302 |
320 |
|
333 |
|
|
|
|
|
|
|
|
|
Costs: |
|
|
|
|
|
|
Football costs wages |
166 |
180 |
8% |
190 |
|
|
Football costs other |
70 |
70 |
0% |
70 |
|
|
Amortisation of squad |
40 |
56 |
|
60 |
|
|
Depreciation |
12 |
12 |
|
12 |
|
|
Property & player loans |
3 |
0 |
|
0 |
|
|
Total costs |
291 |
318 |
|
332 |
|
|
|
|
|
|
|
|
|
Operating profit |
11 |
2 |
|
1 |
|
|
Player sales |
7 |
27 |
|
10 |
|
|
Interest |
-13 |
-13 |
|
-13 |
|
|
Profit/(Loss) before tax |
5 |
16 |
|
-2 |
|
|
|
|
|
|
|
|
|
Profit/(Loss) before player sales and property |
-2 |
-11 |
|
-12 |
- Estimated revenues and profits up £6m since the last estimate thanks to another FA Cup win and a third place Premier League finish
- Next season (2015/16) sees a new UEFA CL revenue cycle which is likely to add over £10mpa to revenue and profit in FYE May 2016 (current EPL/UCL broadcast split 3:1 to become 4:1)
- Some level of player sales is inevitable in summer 2015 given squad profile but unlikely to match the £27m profit generated last year. Any sales made will probably cover likely growth in wage bill next season.
- Best guess for 2015/16 is breakeven with circa £190m wage bill.
- Third place finish allows Arsene to plan wages and acquisitions with certainty now rather than having to wait until late August.
- The £50m plus the new English Premier League tv deal will add in 2016/17 further helps planning by underwriting any wage increases and allowing a greater degree of confidence in future revenue streams.
- We believe spare cash net of allowances for instalments due next season on existing player purchases and working capital needs will be at least £70m at 31 May 2015.
