Arsenal Finances

[Jasard]

Kroenke must be requiring a certain amount of cash to sat in the bank at all times. One of the most cash rich clubs there are and yet we turned a profit in the transfers window knowing full well it would cost us any chance of success. Clearly we are being restricted massively.

City spent like a quarter of a billion didn't they?? We're playing to different rules.

 

[Bergkamp a Dutch Master]

yep. In order to leverage AFC value, he would also want good liquidity, he probably agreed a sum years ago in one of his investment loans in USA.

 

[field442]

I love how Kroenke is always made a scapegoat. This summer we bid £45m for Lemar and signed Lacazette for £50m. We also managed to offer Kolasinac a lucrative deal which saw him sign for us ahead of some other big clubs in europe. Last year we bought two players for £35m and spent £20m on Perez. When we got battered by Liverpool only one of the signed players mentioned above was on the pitch (he was probably the worst player on the pitch as well) for one reason or another. Whose fault is that?

The AST said we had around £90m to spend. The Lacazette deal and Lemar bids would've made our summer spending around that figure. Had we finished in the top 4 we would've had another £30m to play with. £120-£130m is a decent budget to work with. We might not be spending City levels of money but we spend what we have. Fair enough if you want to slag him off for not spending his own billions but let's not pretend he doesn't make money available and is bleeding the club dry.

 

[Rain Dance]

I love how Kroenke is always made a scapegoat. This summer we bid £45m for Lemar and signed Lacazette for £50m. We also managed to offer Kolasinac a lucrative deal which saw him sign for us ahead of some other big clubs in europe. Last year we bought two players for £35m and spent £20m on Perez. When we got battered by Liverpool only one of the signed players mentioned above was on the pitch (he was probably the worst player on the pitch as well) for one reason or another. Whose fault is that?

The AST said we had around £90m to spend. The Lacazette deal and Lemar bids would've made our summer spending around that figure. Had we finished in the top 4 we would've had another £30m to play with. £120-£130m is a decent budget to work with. We might not be spending City levels of money but we spend what we have. Fair enough if you want to slag him off for not spending his own billions but let's not pretend he doesn't make money available and is bleeding the club dry.

Question !
Is the money available comes from turnover of our player sales and other income generated by club or made available by him ?

Because that would be a difference between operating as selling club like West Ham, Southampton and other clubs who rely on player sales to balance their transfer fund, and one of the top 10 finance powerhouse like Arsenal.

 

[TriniGunner]

Kroenke may be the scapegoat but let's not kid ourselves here. Our scouting program, manager, academy and inability to nurture and spot talent has been manifested in how we run our transfer business and inevitability our performances on the pitch. Wenger has been given more than enough money for transfers and wages over the past 6 years and our squad still lacks depth and quality in certain areas. You cannot spend your way out of playing poor defensively, season in season out. It's like Trump trying to tweet away his foreign policy. Our manager's consistency in playing certain players out of position and not getting the best out of his squads is what we saw vs Liverpool last Sunday. He fails to motivate his teams in big away games...that's not a now thing, it's been like that since the "invincibles" era cause even they had problems winning big games away. At the end of the day the common denominator for our problems is Wenger. The players know it, the staff know it and even our past players know that in this current football era, Wenger's methods as it relates to squad management is archaic. Gone are the days of Adams and Keown when you can rely on them to steady a dressing room. The players now are younger, more stupid (sorry but it's true) and they need a no nonsense, no bullshit manager that can get the best out of their talents as a collective. Wenger isn't it.

 

[Gooner Zig]

Arsenal's 16/17 statutory accounts will be published by the end of the month. Will be a very interesting read.

 

[hydrofluoric acid]

Kroenke may be the scapegoat but let's not kid ourselves here. Our scouting program, manager, academy and inability to nurture and spot talent has been manifested in how we run our transfer business and inevitability our performances on the pitch. Wenger has been given more than enough money for transfers and wages over the past 6 years and our squad still lacks depth and quality in certain areas. You cannot spend your way out of playing poor defensively, season in season out. It's like Trump trying to tweet away his foreign policy. Our manager's consistency in playing certain players out of position and not getting the best out of his squads is what we saw vs Liverpool last Sunday. He fails to motivate his teams in big away games...that's not a now thing, it's been like that since the "invincibles" era cause even they had problems winning big games away. At the end of the day the common denominator for our problems is Wenger. The players know it, the staff know it and even our past players know that in this current football era, Wenger's methods as it relates to squad management is archaic. Gone are the days of Adams and Keown when you can rely on them to steady a dressing room. The players now are younger, more stupid (sorry but it's true) and they need a no nonsense, no bullshit manager that can get the best out of their talents as a collective. Wenger isn't it.

With better owner all these things you mention would be fixed.

Scapegoat my ass. Kroenke is the fault at everything that is wrong at this club.

 

[hydrofluoric acid]

People really need to stop making excuses for Kroenke.

A owner of home sack the cleaning lady and gardener if they are not doing their job and hire someone who can. A owner of home redecorate if he doesn't like something.

Kroenke failed to do what a owner should do when there is crisis. Zero leadership.

 

[bingobob]

Apparently someone is buying shares.

 

[GoonerJeeves]

Arsenal's 16/17 statutory accounts will be published by the end of the month. Will be a very interesting read.

Looking forward to read Swiss Rambler's take on it.

 

[Gooner Zig]

Looking forward to read Swiss Rambler's take on it.

His blogs on our finances are fantastic reading.

 

[Fallout]

full year results are in.
http://news.arseblog.com/2017/09/ar...inancial-results-appear-to-have-lots-of-cash/

my takeaways are as follows:
* revenue is up to 420 million from 350 million (tv deal)
* however, cash balance excluding debt reserves is down to 145 million from 190 million (player expenditures)

what explains this?
* we spent 100 million on players (xhaka, mustafi, perez, etc)
* we paid off 27 million in debts, which is an unusually large amount for us

how much money do we have for transfers going forward?
* looking at the cash flow statement, we bought 102 million of players and lost 46 million in cash, so that means we overspent by 56 million.
* however, we did repay an unusual amount of debt, so if we add back in 25 million to reflect that, then our breakeven point is closer to 80 million. i think this is our annual transfer budget (transfer fees plus wages assuming we dont free up money via player sales).
* by the way, we still owe net transfer fees to other clubs amounting to 42 million because we like to pay in installments. which is a lot of money.

 

[Aevi]

Sounds to me like the club is still not going to go big in the summer, we'll need to make money by selling and our players aren't worth much atm because few have been playing well. Kroenke's lack of investment is really holding us back.

 

[Aevi]

 

[dashsnow17]

So essentially we're not a club that can compete at the top end of the transfer market without CL football. What's the absolute maximum net spend possible this summer then, maybe 100m at most? Doubtful. Certainly doesn't look like we can afford to spend 40-50m on a GK, CB, DM and winger.

 

[field442]

What’s the absolute maximum net spend possible this summer then, maybe 100m at most? Doubtful. Certainly doesn't look like we can afford to spend 40-50m on a GK, CB, DM and winger.

Hard to say. In the accounts transfer fees are spread over the length of the contract so it’s hard to look at it purely from a numbers point of view. If we buy three £50m players on five year contracts it will only show as £30m on the books for that years financial results.

Edit - Should add, obviously the outlay will be greater than the £30m reported on the books at that point in time but you won’t be paying £150m up front anyway.

 

[Garrincha]

Sounds promising!

Going big just not working for us.

We are not going out & signing the elite most sort after players... We always need the caveat that bigger clubs have passed or player has become available.

Sign players that we need, fit the role well & complement the players we have.

Its embarrassing how fitting them into the team is clearly an afterthought.

 

[dashsnow17]

Hard to say. In the accounts transfer fees are spread over the length of the contract so it’s hard to look at it purely from a numbers point of view. If we buy three £50m players on five year contracts it will only show as £30m on the books for that years financial results.

Ah well that puts a spanner in the works. It's always so difficult to gauge approximately how much money we actually have to spend. On the one hand our income is down and we have our chairman saying we have to be self-sufficient and find innovative ways to improve. On the other we're the 6th richest club in the world with 766m of fixed assets (more than any other club), the lowest net debt in the PL and only Utd and City are richer than us.

It seems we're constantly both very rich but not rich enough to compete.

 

[field442]

Ah well that puts a spanner in the works. It's always so difficult to gauge approximately how much money we actually have to spend. On the one hand our income is down and we have our chairman saying we have to be self-sufficient and find innovative ways to improve. On the other we're the 6th richest club in the world with 766m of fixed assets (more than any other club), the lowest net debt in the PL and only Utd and City are richer than us.

It seems we're constantly both very rich but not rich enough to compete.

We are still quite cash rich as well. Cash reserves went up by £30m and will probably go up by a similar amount again so we will have £150m+ cash reserves in the summer. Depending on when the new shirt sponsorship starts (still not sure if the new terms covered the final year of the original deal) we will have an additional £10m from that and £10m from sleeve sponsorship. We will also get a big jump in the new kit manufacturer deal.

I still think we can spend £100-£150m if needed.

 

[<<reed>>]

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