By Jonathan Chong on Sunday, August 31, 2008

Manager Arsène Wenger has said that he welcomes an initiative from UEFA to investigate the finances of every football club under its umbrella.

The Frenchman voiced his support yesterday, saying that it is vital to the integration to the sport that its members operated above the line and what is within their financial capabilities.

Wenger said: "It is very welcome. I think teams who have deficit should be kicked out of Europe.

"The only way to go is that there is a control over all of Europe, and I think it will go that way whether you like it or not.

"UEFA will bring in a control of the management of every individual club and every individual club will be controlled.

"It is very important for the fans of the competition first, and it is very important that every club lives with the resources they have available - clubs should not speculate and then after one year they cannot pay the salaries for the next seasons.

"Every transfer nowadays in Europe is paid over two or three years, and it is compulsory that Uefa controls that the commitment of the club is right, because if that does not happen, it can all collapse very quickly."

User Comments

14

justin

Posted on 6 Sep, 2008 at 11:52 AM - Reply

General Wenger - we are in debt as you've said but the issue is whether you're debt is sustainable. Arsenal can pay off the required installmenst with the revenue it generates (champions league, TV, gate reciepts etc). Chelsea and soon to be Man City do not generate enough revenue to pay their expenses... they pay them through ad hoc cash injections from rediculously rich owners. Now, when the owner walks away, they have liabilties (player wages mainly) that they wont be able to afford to pay. They then would be forced to sell players to trim the bill (see West Ham now, or more notably Leeds). Wengers point above about clubs gambling on success was illustrated by leeds. leeds had factored in X million pounds from champions league revenue and spent i before they earned it. they finished 5th one year and all of a sudden they couldnt afford their squad and the rest is history.

could go on longer but key issue is that everyone has debt, but clubs like arsenal pay that debt with revenue they earn. This is sustainable debt.

13

brnks

Posted on 4 Sep, 2008 at 01:48 PM - Reply

So much criticism, all said and done there is nothing good that comes easy, remember he who laughs last laughs best chelsea, manu, liverpool may laugh now; the truth is arsenal'll still laugh

12

Patrick

Posted on 3 Sep, 2008 at 02:40 AM - Reply

Be nice to see Chelsea kicked out of the Champions League because of money laundering or something like that, like Juventus or l'OM. FIFA should make some kind of law that eliminates benefactors so clubs like Chelsea and now Man City don't exist.

11

throat slitting police

Posted on 2 Sep, 2008 at 01:04 PM - Reply

bit harsh!? i know where you live sonny!

10

Wolf

Posted on 2 Sep, 2008 at 06:07 AM - Reply

If wenger dusn buy anyone i swear i will hunt him down and slit his throat

9

Wokich

Posted on 1 Sep, 2008 at 08:38 PM - Reply

It makes me excited that we actually are acting financially responsible. Once the debt is paid off we'll be financially way ahead and able to make investments in players and the like. It's not like the stadium was going to light up our finanicial statement immediately. It's a long-term strategy to be able to compete (and eventually beat) ManU and Chelski WITHOUT having to rely on a wealthy benefactor. If we can hold down our spending and avoid increasing the debt we're going to be the biggest club in the world in 10 years, thanks to the business sense of Arsene Wenger, MBE.

Unless we do something stupid . . . . like getting someone without business knowledge to succeed AW. a.k.a. Tony Adams.

8

Buffy the Gooner Geezer

Posted on 1 Sep, 2008 at 05:07 PM - Reply

This was coming a long time ago. I am however pleased to see so many educated people knowledgeable about how stable the club is. Too many times have I heard that Arsenal dont spend money... put it to rest. Now are there any bets to just when United may have to be paying some of that debt back?...

7

C-J

Posted on 1 Sep, 2008 at 07:28 AM - Reply

GeneralWenger: Arsenal is in debt because they loaned money from the bank to build the stadium, but they have a working instalment plan and they make a profit each year - compared to Chelsea, who've lost several hundred millions just the last few years. The principle of a healthy economy is based on manageable debts and a profit-running organisation.

6

$m0k3y

Posted on 1 Sep, 2008 at 12:39 AM - Reply

Our debts aren't consolidated in things like players, clubs, stadiums or loans. Over the last couple of years we have re-structured our debt in such a way that we will be free of major debt ahead of many other major clubs. Arsene is happy that when investigated there are no skeletons in our closet :)

5

Wokich

Posted on 31 Aug, 2008 at 10:24 PM - Reply

In the black is different than having debt. Wenger's basically saying that the clubs need to turn a profit. Say we have 100 in debt at an 8% interest rate on a 10 year loan. We only have to pay off part of the debt per year, not the whole thing. (service the debt)

Wenger's saying that all clubs should be able to pay all bills (salaries, service the debt, etc) and keep a positive income stream. What he's against is clubs who's expenses are greater than their income. That means they have to rely on an alternative income stream, like wealthy benefactor (Abromovitch).

Wenger's point (and I think it's a good one) is if something happens to the income stream, (Abramovitch dies and his heirs do not support football) the club cannot support itself and . . . hello Leeds!

4

PJ

Posted on 31 Aug, 2008 at 09:17 PM - Reply

I am not a football accountant. However, to me Arsenal is in debt due to capital investment i.e. long term infrastrucutre, in the stadium. Chelsea's debt appears to me to be due to current expenditure i.e. short term on players wages and transfer costs. The first will provde long term financial benefits to the club that can be payed for by the current business activities of the club. The latter cannot be afforded by Chelsea without the support of an individual who is willing to make loans to the club that cannot be justfied on a business basis i.e. there will not be financial return to justify the investment. Similiar concerns exist for some other clubs but each case must be looked at individually.

3

Amir

Posted on 31 Aug, 2008 at 07:08 PM - Reply

Chelsea and Utd's debt is to specific individual benefactors; Abramovich has a 700m personal loan with the Bridge, and Utd's is larger still. Our total debt is around 260m, which I believe is a corporate loan with Emirates. We made 131m last year, so are well on the way to clearing it.

2

Neil

Posted on 31 Aug, 2008 at 06:12 PM - Reply

Our debt is different - we borrowed to buy a new stadium. The new stadium gives us more revenue with which to pay off the debt, it's an investment.

When Man utd and liverpool were bought their new owners borrowed money to buy the club, then transfered this debt to the club (so if the club goes bust, the individuals owe nothing, but the club does). These clubs gained a debt without a corresponding increase in revenue. And what chelsea do is just silly, abromovich isn't immortal, even if he doesn't get bored, he won't be at chelsea forever to underwrite their spending.

We are the only top club with a sustainable debt - if any of the other clubs miss out on the champions league (possible exception being chelsea) their debtors will get worried and start putting pressure on them to pay up. If we miss out on the champions league, our debtors won't care as long as we keep attendances above 45,000 or so

1

-GeneralWenger-

Posted on 31 Aug, 2008 at 02:48 PM - Reply

Hold up...I know we use money FAR more sensibly than other big clubs but aren't we in debt also? Or is it different type of debt than Manu Chelsea Real Madrid etc..can someone pls clarify??

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