Arsenal released their financial results for the year ending May 31st, 2012 on the 27th of September. You can read them here. Despite what Ivan Gazidis said, there are some worrying trends in these numbers.
Top Line Numbers
Football Segment
|
2012 (£m) |
2011 (£m) |
|
| Turnover |
235.3 |
225.4 |
| Operating profit before depreciation, player trading and exceptional |
32.3 |
45.8 |
| Player trading |
26.1 |
14.6 |
| Profit before tax |
34.1 |
2.2 |
Input Arsenal’s turnover into perspective, in 2009 it was 209 and in 2010 it was 223 million. That is an anaemic growth in turnover.
Turnover Breakdown
> Match Day Revenue: Increased slightly to £95.2 million from £93.1 million mainly due to the fact that Arsenal had one extra home game last season.
> Broadcasting Revenue: Basically unchanged at £84.7 million from £85.2 million.
> Commercial Revenue: Increased to £52.5 million from £46.3 million. Still incredibly low numbers when compared to other big European clubs. Manchester United‘s commercial revenue is about double Arsenal’s.
The lack of growth in Arsenal’s commercial turnover is really frustrating to me. Yes I know that the stadium and kit deals are not up until 2014, but look at the growth in commercial revenue in the last four years:
2009: £48m
2010: £44m
2011: £46.3m
2012: £52.5m
To put that in perspective, Manchester United’s announced earlier this month that their commercial revenue for last season was £117.6 million
Expenses
This is the worrying part to me as Arsenal had a massive jump in its wage bill from £124.4 million in 2011 to £143.4 million in 2012. Arsenal’s wage bill now represented 60.9% of the football revenues, up from 55.2% in 2011.
To put this in context, here is Arsenal’s wage bill over the last four years:
2009: £104m (46% of turnover)
2010: £111m (50% of turnover)
2011: £124.4m (55.2% of turnover)
2012: £143.4m (60.9% of turnover)
That is a massive increase in Arsenal’s wage and that kind of growth in expenses is not sustainable.
Bottom Line
Arsenal is a club with little growth in turnover and an out of control wage bill. That is not sustainable. Unless they are planning on net transfer dealing of £25-30 million each year, Arsenal needs to increase its turnover, specifically its commercial revenue quickly while reigning in its wage bill (sorry Theo).
Article courtesy of David Wilson of ‘We Are Arsenal Blog‘
mate its a joke, have you seen what we are paid by our shirt sponsor in comparison to the other clubs….its a joke.
Gazidis should be sacked, he is a clown, cant negotiate player cotracts, cant negotiate commercial deals and gets paid silly money.
The shirt sponsorship deal is the result of needing to fund our own stadium to grow. Dont forget that football has changed dramatically since the Russian ruined our league.
Arsenal’s projections for moving were based on wages going up at a rate prior to his arrival. No one could have predicted that.
However, the deal meant we got cash for the stadium. When we renew the sponsorship deals we will increase revenue and generate commercial income more in line with our stature.
PS Ivan was not responsible for that.
COME ON THE GUNNERS
This is spot on. We renegotiate the shirt deal in 2014 and will see a huge spike in commercial revenues after that. The original Emirates deal was the largest in history in 2006. I’d imagine we will see another record deal in 2014.
A pointless post and both of you miss the reasoning here- the commercial deals are low cos they were negotiated ALL up front- an unheard of proposition – to finance the stadium. As of next year expect parity with the other big clubs and it seems obvious by our loans that Arsenal are trimming the wage bill with earnest.
If you wish to see an ‘a club with little growth in turnover and an out of control wage bill.’ then how about Chelsea, Man City etc etc
You do not understand business. If you become trophy less, then your future trading in regard to shirts and other goodies will fall apart.
Your managers specialy gazidas have no interest in promoting Arsenal through trophies and success. Imagine how many children swap team shirts due to Arsenals failure of silver ware.
You going to fall further until Gazidas leave Arsenal.
Thanks
If Arsenal start winning trophy after trophy for the next three to five years there is hope of closing the gap in the mmercial side. The red faced had been winning trophies,with the FA and refs help,these 20 years. Where do you think they would be without success aided by third parties?
Watch Arsenal go once they start winning the epl or cl. Sponsors will rush in . The thing is the gunners must start winning and soon.