Arsenal Finances

[tap-in]

Wouldn’t that suggest some of the cash reserves are as well? That’s a lot more than £50m.

I'm sure the cash reserves dropped in the last set of figures. I can't remember the figure. We made a profit in the window so not sure why they dropped.

Edit, just checked, they dropped from 226.5m to 180.1m accounts 2016 to 2017

 

[KROENKE SUCKS]

Gaz going all out on financial deals now that he has Wenger out! I cant be the only one who's thinking this.

 

[Stannis]

Sort of wish it said “Rwanda Forever!!!!” instead.

Even the font is similar

 

[KROENKE SUCKS]

Hmmm Wenger goes and now all of a sudden our commercial team is finally pulling its weight.

 

[Mo Britain]

Rwandan tourism is booming.

Already booked a flight there.

I'd love to fly to Rwanda to go to the cinema there and watch "Tootsie".

 

[Saikung]

I thought it said Wakanda

 

[dashsnow17]

http://www.onlinegooner.com/article.php?section=exclusive&id=3822#.Ww0GaNUvx-U

Analysis here by the Arsenal Supporters Trust estimates that 50m was a conservative figure briefed by the club, the actual budget is more like 100m. Whether the club actually wants to spend all of it is another matter.

 

[field442]

http://www.onlinegooner.com/article.php?section=exclusive&id=3822#.Ww0GaNUvx-U

Analysis here by the Arsenal Supporters Trust estimates that 50m was a conservative figure briefed by the club, the actual budget is more like 100m. Whether the club actually wants to spend all of it is another matter.

I doubt they even briefed it. Arsenal being poor and having no money to back the new manager makes for a far better story. As Gazidis said, anyone can see how much money we have by looking at the financials.

 

[marting]

I doubt they even briefed it. Arsenal being poor and having no money to back the new manager makes for a far better story. As Gazidis said, anyone can see how much money we have by looking at the financials.

Its mad that we only have 100m to spend.....you have to appreciate how Liverpool are already spending big money getting players in. They will outspend us again this season.

 

[Gooner Zig]

We're handicapped by the way our Board runs this club. It's run as a pension fund. Take one look at LFC accounts and you will see that they run their business on a 150M revolving line of credit. They actually don't really have any cash. With a little more daring we should be spending 100M net per season.

 

[Jasard]

It's taken Liverpool years and years to sort themselves out, hopefully we are smarter.

 

[say yes]

We're handicapped by the way our Board runs this club. It's run as a pension fund. Take one look at LFC accounts and you will see that they run their business on a 150M revolving line of credit. They actually don't really have any cash. With a little more daring we should be spending 100M net per season.

Yup. You'll be much more informed than me on this topic but it has always annoyed me the way the discussion on our finances is limited to the amount of cash sitting in the bank. That isn't a proper reflection of our financial means as Liverpool (and countless other teams) have repeatedly demonstrated.

If Liverpool's spending helps to further secure them as a top-4 club (or even further, as a European contender) then it will prove money very well spent.

 

[DanDare]

We're handicapped by the way our Board runs this club. It's run as a pension fund. Take one look at LFC accounts and you will see that they run their business on a 150M revolving line of credit. They actually don't really have any cash. With a little more daring we should be spending 100M net per season.

Just had a read these articles. How Liverpool got the jump on Arsenal

https://www.google.co.uk/amp/s/www....though-the-gunners-generate-more-revenue/amp/

Pretty interesting

 

[Gooner Zig]

Just had a read these articles. How Liverpool got the jump on Arsenal

https://www.forbes.com/consent/?toU...ven-though-the-gunners-generate-more-revenue/

Pretty interesting

Without reading it, I know which article you're talking about. The author conveniently forgets to mention that Liverpool's owners have pumped 100M into LFC via loans which are at interest rates well below prime and have no fixed maturity date (read: pay us back whenever you can).

EDIT: He does mention it. I actually had a bit of a debate about him not including this in his original article. He must have since updated it. At the time it was a huge deal not mentioning this.

 

[tap-in]

Yup. You'll be much more informed than me on this topic but it has always annoyed me the way the discussion on our finances is limited to the amount of cash sitting in the bank. That isn't a proper reflection of our financial means as Liverpool (and countless other teams) have repeatedly demonstrated.

If Liverpool's spending helps to further secure them as a top-4 club (or even further, as a European contender) then it will prove money very well spent.

I think there are many on here that realise the cash mountain is generally not for spending on players. It did drop from £220m to £180m in the last set of accounts but our transfer budget is separate to our cash pile. When you get Old man Chips claiming we can buy any player, he probably also has his eye on the cash. Kroenke would rip his arm off if he tried to spend it!

 

[Gooner Zig]

I think there are many on here that realise the cash mountain is generally not for spending on players. It did drop from £220m to £180m in the last set of accounts but our transfer budget is separate to our cash pile. When you get Old man Chips claiming we can buy any player, he probably also has his eye on the cash. Kroenke would rip his arm off if he tried to spend it!

If this is true - what is it for exactly then? Arsenal have generated ~£90-100M in net cash from operations for the past three seasons. This means that we've banked £100M in excess cash before we take away investing (capital assets, transfer spending) and financing (servicing debt).

 

[tap-in]

If this is true - what is it for exactly then? Arsenal have generated ~£90-100M in net cash from operations for the past three seasons. This means that we've banked £100M in excess cash before we take away investing (capital assets, transfer spending) and financing (servicing debt).

I have no idea what it's for, I always thought Kroenke had his reasons for wanting to build it up. As I said it dropped in the last set of accounts but normally increases each time. There was a rumour last week that Kroenke had agreed to £20m more for the transfer budget, if true maybe that is from the cash pile. If true we'll see in the next set of accounts.

 

[Gooner Zig]

I have no idea what it's for, I always thought Kroenke had his reasons for wanting to build it up. As I said it dropped in the last set of accounts but normally increases each time. There was a rumour last week that Kroenke had agreed to £20m more for the transfer budget, if true maybe that is from the cash pile. If true we'll see in the next set of accounts.

The fact is that we could spend significantly more than what we have outlaid in the past couple of seasons. You only need to look at our accounts which are public to figure it out. Whatever the Board say about "not all the cash is there for transfers" is just rubbish. As I said before, a more daring (polite way of saying ambitious) board would not allow that cash balance to be as high it is.

 

[GoonerJeeves]

From what I understand, we were required to keep £35m as a debt cash reserve. Granted the cash reserve has been substantially larger.

 

[Gooner Zig]

From what I understand, we were required to keep £35m as a debt cash reserve. Granted the cash reserve has been substantially larger.

You are correct. That means we have £150m net to play with. I'm not sure why we need to show such inflated cash reserves. Cash sitting in the bank is an unproductive asset and loses value due to inflationary pressures. We knew transfer fees were going to rise exponentially, we should have invested every dollar we had available to protect ourselves from that inflation. Liverpool have played it brilliantly - we have shot ourselves in the foot.