Arsenal Finances

[say yes]

Scariest thing about the Ramble Analysis is how far ahead United are. Ridiculous finances.

Thankfully Agent Mourinho is there to level the playing field. Could become an Arsenal legend if he manages to do to them what he did to Chelsea.

 

[MagicalRozza]

Good read as always. Obviously now looking at the transfer prices it makes us look foolish to have just sat on a pile of cash for years with interests at all time low but nothing we can do about it now.

What is more worrisome, and has been for quite some time, is the poor development of our commercial revenue when compared to our competitors. Even Sp**s have closed that gap significantly in the last few years despite still being behind us substantially. Still the trend is sickening. After all, the new TV deal will not provide us any advantage to our domestic competitors. Now that other teams are renovating their stadiums and building new ones, we will soon loose the match day revenue advantage we've had for years. This means that in the future, commercial revenue will be a much bigger factor when differentiating English teams from each other and looking the figures from the last few years, we should be doing a lot better.

Exactly. Man U and Man City are getting accordingly 51% and 49% of their revenue from commercial deals. For MC one can wonder that it has to do with their league successes. For United, in particular in the post SAF era, it has no connection with successes on the field, so this has to be a consequence of them becoming such a huge institution in the 1990's. For me this puts us in a bad light. We were the only true competitor of Man U for years, had a charismatic manager, yet we have never been able to reach the same amount of international and commercial recognition as them, although London seem much more attractive than Manchester. We haven't even been able to capitalise commercially on the Invincibles. Now it seems too late to catch up, especially when we continue to win nothing.

Also seeing how much Arsenal are bleeding the fans for tickets in comparison to other big clubs and how much more are we dependant on match revenue it makes the argument that the fans are entitled to voice their opinion as to how the club is being run and managed even stronger.

 

[Sanchez11]

We need to win a title and go far in the cl to improve our commercial deals. If we won more silverware we would have more leverage. In fairness i actually think roman has had enough of putting more money into chelsea its the manchester clubs that bother me. But for utd the longer they dont win silverware i could see their commercial side drop abit, dont get me wrong they are a huge name in world football but i could see it happening.

From our point of view the net debt is decreasing every year which is great, but a title or 2 will put us back in the mix off the pitch imo.

 

[DanDare]

Yeah exactly. Hard to see us making a big leap up in revenue without some success. Winning the CL is worth like £30m that season and then years of increased revenue. The amount you get as a large club is exponential when you win things. Overall our future revenue increase would have been bigger than Leicester if we had won the league and not them

 

[Gooner Zig]

The problem with the transfer what-ifs is that we don't know the full story and there is a temptation to jump to 'obvious' conclusion.

Experience has shown that those conclusions are often wrong. When Arsenal was spending no money it was because Wenger was stubborn and out of touch. Now we have learned that the club was actually at the brink of insolvency. Last summer Wenger was doing nothing in the transfer market; now we know he was at least trying to buy Xhaka. When Wenger turns down an obvious buy, like Schneiderlinn, it's because Wenger has misjudged the price rather than correctly judged his (lack of?) ability.

As for the £50m bought two world class players two years ago and only one now argument

1. that applies to every club.
2. Was predicated on knowing the value of a future TV deal.

If a club is going to assume TV revenue can only go up, then they can also assume player price inflation will continue, therefore, every club should be buying players at above market rates to get ahead of the curve.

That no one does is perhaps a weakness in Swiss Rsmble's argument.

You can sugarcoat it however you like but I don't see how you can refute the assertion that by not spending the available resources to us in the past three years, we've lessened our ability to compete at the highest level.

RE: 50M comment - everyone is in the same position you say? Well, sorry to point this out, not every club is sitting on 200M+ cash reserves

I don't really understand the other line, clubs were buying players, that is the point, other elite clubs were stock piling talent whilst Arsenal were keeping their power dry - why?

 

[redanddread]

@Gooner Zig

For me it's been obvious that Wenger's been after truly WC talent, particularly in the forward position. An investment that (incl. wages) would like cost over or close to 100M. It has been alluded to by one of the directors (was it Sir Chips?) recently that if the right player arose then they have the ca$h and the willingness to swoop.

As such for whatever reasons, he's been unable to buy said player, hence, keeping the powder dry.

Furthermore, Arsenal have been one of the biggest net spenders in the last few seasons - who would have thunk that a few years ago. Look at the high quality expensive talent that has been purchased since 2013 - Wenger will spend but only on a player he perceives as worth it.

 

[bingobob]

Two things. Uniteds success isn't just as due to the Ferguson era. They won the European cup way back when and were always considered a top team. Liverpool also have more commercial money that is largely down to their history. That is one way we fall short, we need that big cup.

Another thing I found interesting is this;
Arsenal need to consider the Premier League’s Short Term Cost controls, whichrestrict the annual player wage cost increases to £7 million a year for the three years up to 2018/19 – except if funded by increases in revenue from sources other than Premier League broadcasting contracts.

I assume that if we reduce costs elsewhere that we can use that (ie wage reductions, reduced amortisation etc) or will we have to really looking at commercial growth and income from player sales to support wage growth?

 

[redanddread]

The Swiss Ramble

Monday, October 3, 2016
Arsenal - New Sensation



http://swissramble.blogspot.no/2016/10/arsenal-new-sensation.html?m=1

 

[redanddread]

Tracking The Impact Of Arsenal's Move To Emirates Stadium Ten Years On: Was It Worth It?

http://www.forbes.com/sites/bobbymc...um-ten-years-on-was-it-worth-it/#60f10af67a6e

 

[redanddread]

10 most profitable stadiums in Europe based on Matchday revenue

http://www.sportskeeda.com/football/10-most-profitable-stadiums-europe-based-matchday-revenue

 

[GoonerJeeves]

Stan Kroenke waives £3m Arsenal fee after fan backlash over ‘inappropriate payment’

Arsenal have ended their annual £3m payment to the club’s majority owner Stan Kroenke, according to the Daily Mail.

Per-the-source, Arsenal Supporters’ Trust were unhappy nature and size of the payment to the American owner. The report goes onto state that the Arsenal Supporters’ Trust wrote a letter to the club’s chairman Sir Chips Keswick, stating that the payment was in breach of regulations.

Arsenal released a statement that reads, “For the year ended 31 May 2016 Kroenke Sports & Entertainment LLC has waived its entitlement to any fee in respect of services provided to the Group.”

Arsenal Supporters’ Trust spokesman Tim Payton told the Daily Mail that the majority of its members were against the payment, stating that Stan Kroenke has been unable to justify the fee.

“More than 90% of our members were against this fee and believed that Stan Kroenke had not been able to justify it or explain what services he provided. We considered it to be an inappropriate payment. This welcome outcome shows that supporters do have a voice and organised pressure can make a difference,” Payton was quoted as saying my the Mail.

 

[redwhiteAustrian]

So the "fee", which was nothing more than a disguised dividend, hasn't been paid last season?

Where did that come from?

 

[SYS]

Pressure from AST has put them in check. Going by trend we spend our revenue evey year making a small profit. This year we might show a small loss for a change

We spent close to 35m on transfers and agent related fee based on accounts add another 60-70m for the new TV deal additional money. We can spend roughly 60-80m on transfers every year at this rate excluding agent fee as we dont want to make losses. Cant beat City and Utd in transfers but its not very far off from them like in the past

 

[Gooner Zig]

Pressure from AST has put them in check. Going by trend we spend our revenue evey year making a small profit. This year we might show a small loss for a change

We spent close to 35m on transfers and agent related fee based on accounts add another 60-70m for the new TV deal additional money. We can spend roughly 60-80m on transfers every year at this rate excluding agent fee as we dont want to make losses. Cant beat City and Utd in transfers but its not very far off from them like in the past

Which is why it was all the more perplexing when the club's rhetoric (Gazidis) changed this summer and started to cry poor relation.

They're not fooling anyone, look at the wages we pay. Easily one of the biggest payrolls in world football.

 

[Doom]

Stan Kroenke waives £3m Arsenal fee after fan backlash over ‘inappropriate payment’

Arsenal have ended their annual £3m payment to the club’s majority owner Stan Kroenke, according to the Daily Mail.

Per-the-source, Arsenal Supporters’ Trust were unhappy nature and size of the payment to the American owner. The report goes onto state that the Arsenal Supporters’ Trust wrote a letter to the club’s chairman Sir Chips Keswick, stating that the payment was in breach of regulations.

Arsenal released a statement that reads, “For the year ended 31 May 2016 Kroenke Sports & Entertainment LLC has waived its entitlement to any fee in respect of services provided to the Group.”

Arsenal Supporters’ Trust spokesman Tim Payton told the Daily Mail that the majority of its members were against the payment, stating that Stan Kroenke has been unable to justify the fee.

“More than 90% of our members were against this fee and believed that Stan Kroenke had not been able to justify it or explain what services he provided. We considered it to be an inappropriate payment. This welcome outcome shows that supporters do have a voice and organised pressure can make a difference,” Payton was quoted as saying my the Mail.

I'm a little sceptical of the Kroenke-gave-himself-a-false-invoice theory for that £3m fee.

For a kick-off accounts are independently audited and that deal would have been scrutinised before the accounts were signed off by the auditors and the board. Though the board is appointed by Kroenke. (Believe me an audit is no fun at all).

Plus you'd think Uzmanov would be more vocal about it if it was a covert dividend.

Also Kronke is a multi billionaire. £3m per annum seems like small money for a man used to deal in the hundred of millions.

It's annoying that the fee is so opaque but that's far from unusual in business.

 

[SYS]

This probably explains why we are stalling on extending deals to Özil and Sanchez. Clear the deadwood and pay those salaries to our best performing players will be the best option looks like. We cant wait till next summer should be doing it in January

http://theshortfuse.sbnation.com/20...n-gazidis-stan-kroenke-premier-league-tv-deal

 

[Sir Bump]

Who's the deadwood ? Not many..........

Mertesacker and Giroud seem to be the only ones you can clear without significantly replacing.
Ramsey could be sold at a top price to fund a Cazorla replacement (keep Cazorla in the squad for quality experienced backup)

 

[SYS]

Who's the deadwood ? Not many..........

Mertesacker and Giroud seem to be the only ones you can clear without significantly replacing.
Ramsey could be sold at a top price to fund a Cazorla replacement (keep Cazorla in the squad for quality experienced backup)

Agree . In addition the part we pay for loaned players

 

[SYS]

AST caught hold of Gazidis this time around for the 1m bonus payment 

 

[carlitobrigante]

Big props to Wenger. We have an amazingly strong squad, that cost so little to put together compared to its current worth. Iwobi, Bellerin, Coquelin must be worth nearly £100m combined in expected transfer fee's if we were to sell them and they cost us absolutely nothing.

We look to be a small step ahead on the pitch compared to all our rivals bar City, which is no mean feat.

And all the while still continue to hold on to and even grow a substantial cash reserve.

I know it has been very frustrating at times for supporters, but i think we can all agree that we really are run in an exemplary fashion. We maybe dont appreciate this enough when we see how badly managed so many other football clubs are.