Arsenal have released their latest financial results for the 2018/19 tax year. As always the best analysis can be found from Swiss Ramble on Twitter.
The results are what was expected. A loss.
A lack of Champions League football and poor player sales were the two main driving forces behind the loss.
Arsenal made £34million in broadcasting money from its run to the Europa League Final. Manchester United made £82million on their way to the Champions League Quarter Final. It is safe to say that not being in the Champions League is costing the club around £50million a year – and it could get worse if we fail to make the Europa League this season.
For years our commercial deals have been average. In 2019 we signed new deals with Emirates and Adidas that will generate around £40-50million a year in extra income. It is much needed and would turn the loss of the previous year into a profit. The problem is that extra commercial income just makes up for the lack of Champions League football.
Our dealings in the transfer market has been poor for years, and this is shown by the £107m swing in “profit on player sales”.
In recent years we have paid a premium for average players (Lucas Perez) who have then been sold on for big losses. We have also been unable to command big transfer fees for out going players due to the high wages they are on.
To be a successful club with a self-sustaining model, you need all 4 major revenue generators to be performing.
Maximise commercial income
Broadcasting revenue driven from Champions League participation
In the last few seasons, we have underperformed in all but the gate receipts.
As Liverpool have shown, when you get all 4 working together, alongside good coaching, you can build a championship winning team without the need for owner investment.
It was a good weekend for Arsenal despite not kicking a ball.
Draws for Chelsea and Manchester United and a defeat for Tottenham meant Arsenal did not lose much ground on the top 4 despite not playing.
Our game in hand is away to Manchester City, so this weekend was a big one for those teams with the opportunity to put some more space between them and Arsenal.
As it stands we sit just 8 points off Chelsea in 4th and 5 points off Manchester United and Wolves in 5th or 6th. Depending on what happens with Manchester City’s CAF appeal, 5th could be the magic number for the Champions League and 7th for the Europa League. We are 3 points off 7th.
It was also good to see Liverpool lose. Going unbeaten is not for everyone.
Tonight it is the fifth round of the FA Cup away to Portsmouth. Will be interesting to see what side Mikel Arteta puts out following “fatigue” comments following the Olympiakos game.
Had we beaten the Greeks, I imagine Arteta would have played a rotated XI tonight. But with the FA Cup now being the only chance of a trophy, it has to be full strength XI.
Our next league game is on Saturday so players will have nearly a week to rest up following todays tie.
Take the FA Cup seriously and we could still have a successful season despite the problems we have faced.
Up The Arsenal