Who says selling players has been all bad for Arsenal?
While the North Londoners might be criticized for not being able to hold onto their star players in the past, they have, subsequently, recorded higher profits for the fiscal years in question. Arsenal are reported to have recorded a loss of £ 2.5 million
in the 6 months leading up to December 2010 mainly down to a sharp decline in player selling.
There have been no such prominent sales in the summer of 2010 compared to previous years when the Premier League side had a healthier balance sheet at the back of a couple of big name sales. The £2.5 million loss reflects a stark difference from the profit
of £ 29.2 million recorded in the year prior.
2009 saw the likes of http://www.senore.com/Football-soccer/Emmanuel-Adebayor-c12526 making a move to the midlands to join the high-spending Manchester City - The Result? A whopping £33.9 million cash inflow from sales. Compared to that, the club made a mere £ 4 million from personnel
sales.
However, Chief Executive http://www.senore.com/Football-soccer/Ivan-c17215 Gazidis believes that the Gunners have evolved into a sustainable business model. He further added that it effectively makes them financially sound to be able to hold onto their star players – The Arsenal Captain, Cesc Fabregas,
being quoted as a prominent example. Fabregas looked all set to return back to his boyhood club http://www.senore.com/Football-soccer/Barcelona-c38605 in the summer of 2010 but after some negotiations, Arsene Wenger and Co. managed to retain the FIFA World Cup winner.
Moreover, there have been other factors that have led to a sharp decline in revenue. Firstly, there has been a reduction in income generated from the sale of property in the last accounting period. A total of 50 apartments at the Highbury Square complex
at the club’s former stadium were sold this term compared to 261 last year – A contrast of £ 22.5 million this term compared to £ 96.6 million in 2009.
Secondly, Arsenal are usually expected to generate a total of £ 3 million per home game. The period leading up to December 1st, the Gunners featured in a total of 10 games at the Emirates compared to 12 in the year prior.
The club’s non-executive chairman, Mr. Peter Hill-Wood commented, “This is a robust performance in the current climate and is where we expected to be at this stage of the financial year and at this stage in our longer term development plans for the growth
of the club."
With their financial affairs evidently in line with UEFA’s fair play policy in the coming seasons, Arsenal have been able to retain most of their most prized assets, however, the North Londoners should also register the non-financial aspects that lead up
to a motivated ‘task-force’ and ideally focus their energies at winning some silverware in the near future.
With that said, the following statement of the non-executive seems a touch ironic, he adds, "We continue to operate as a self-funding club. This brings its own challenges in an increasingly competitive environment but provides the platform for a secure and
positive long term future."
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