Tag Archives: Ivan Gazidis

Martinez, Ozil, Wenger, Gazidis and More

Emi Martinez

Some people are still going on about the former Arsenal goal keeper.

He played a dozen good games for Arsenal and then left.

One weirdo said he has been “heartbroken” since he left.

We do not need to talk about him  anymore. Time to move on.

Mesut Ozil

As expected, Mesut Ozil was not named in Arsenal’s Premier League squad.

He has played his last game for the club.

Back Mikel Arteta, back The Arsenal.

We do not need to talk about him  anymore. Time to move on.

Arsene Wenger

The Arsene Wenger book tour is still going on.

The man is putting in some hours.

By now we have all read the entire book via Twitter.

We do not need to talk about him  anymore. Time to move on.

Ivan Gazidis

We do not need to talk about him  anymore. Time to move on.

Enjoy your Wednesday.

Keenos

So just what is going on at Arsenal?

Yesterday Unai Emery confirmed what we all knew. That Arsenal were primarily looking to complete loan deals in January.

The club do have money to spend on players, but it has to be the right players. Not a stop gap. Not a risk. But someone who Sven Mislintat and his team recommend as the right player, a long term option.

If this player is not available in January, it is important that we do not panic buy. Waste money on someone who no one really wants. A new player is for life, not just for January.

Clearly Mislintat, alongside Raul Sanllehi and Unai Emery have decided that the right players are not available. Hence the focus on loan deals.

We all know the club is not floating in money. We don’t have the sugar daddy of Manchester City or the commercial revenue of Manchester United. Liverpool have out bought us over the last 5 years due to some fantastic sales – even though it is Arsenal with the higher net spend.

The restrictions at the club at the moment are not due to the new guys, or even Stan Kroenke. It is due to what has happened before.

For the last 4 or 5 years, the club has been poorly run by Ivan Gazidis; assisted by Arsene Wenger. If Kroenke is guilty of anything, it is not getting rid of the pair years ago.

Go back to the summer of 2015 when we only bought Petr Cech.

The financial pressure from the stadium loan had been partly lifted due to refinancing. We had money to spend, and failed to spend any on an outfield player. It was a catastrophic summer. It not only cost us the league title that year, but has caused us damage that we are suffering now.

4 years on we are paying for the price.

Had we actually signed what we needed to that summer, they would be coming to the end of their 4 year deals this. Their transfer fees would no longer be amortised in the accounts, freeing up further budget to buy players.

Due to the lack of transfer activity that summer, very little will be falling off the accounts, available to spend this summer. Just the couple of millions for Cech. And we are still paying for players that we had to overspend on a year later due to this fiasco.

This will be propped up by Danny Welbeck’s transfer fee no longer being amortised (he signed a 5 year deal in 2014). It is incredible that that summer has cost us so much.

We then have the poor commercial deals by Gazidis.

Whilst he shouted about record deals” the truth was that a high tide rises all ships.

Arsenal were getting more money, from Puma, from Emirates. But the teams behind us (Chelsea and Liverpool) were closing the gap with every new deal. And Manchester United we’re pulling away with every new deal. This has cost us key commercial revenue.

Since 2009, Arsenal’s commercial revenue has risen by 88%. Liverpool, Manchester United and Chelsea have all increased theirs by over 100%

Then we have player sales.

My estimation is that Arsenal have missed out on over £200n in transfer fees due to poor player sales over recent years.

Liverpool have spent more than £200m on players than Arsenal in the last 5 years. Yet Arsenal have a net spend £50m higher. The Scousers have been better at selling – bringing in over £250m than Arsenal.

This figure is even more incredible when you consider how much they spent on Allison and Virgil van Dijk in the last 12 months.

We all knew that Arsenal had been run poorly over the last half a decade, and it is only becoming clear now just how poorly that was.

Sanllehi is not yet 12 months at the club, and barely 6 months in his new role. Mislintat has been here just over a year. It will take these guys time to fix us. They need to be given that time and our support.

Over the summer I held a simple opinion. That it would take 6 transfer windows from when Mislintat took over to change Arsenal. We have had 2 so far.

In the two we bought in some top signings.

Aubameyang. Torreira, Leno, Sokratis, Mkhitaryan, Guendouzi & Mavropanos.

This summer we will hopefully see a new left back, central defender and winger join the squad. Arsenal could have over £100m to spend, depending on player sales.

That will be 10 new players. 40% of the squad turned over in 18 months.

And it is not just about buying players. It is about selling.

Ramsey, Cech and Welbeck will all leave on a free transfer. Add in Lichsteiner and that is nearly £20m freed up.

Over the last 12 months we have seen Giroud, Walcott, Debuchy & Coquelin also leave. As well as Cazorla, Wilshere, Meetesacker, Perez and Campbell.

Add in Sanchez and that is 13 senior players sold in 3 transfer windows. Over 50% of Arsene Wenger’s 25 man squad.

That should highlight to you all how big a challenge it is at Arsenal. We have had a 50% turn around in playing staff, and are only 1/3 of the way through doing what we need to do.

A line in the sand has to be drawn. Let’s not blame what is happening now on those currently at the club. It is the fault of those who left.

Raul and Sven are having to undo a lot of poor work. They have pretty much having to rebuild the entire squad. The entire club.

I am positive about the future at Arsenal. It feels like some fans have now finally realised what a hole we were in.

Back the new lads.

Keenos

The good and bad of Arsenal’s £300m Adidas deal

Arsenal are set to announce a new kit sponsorship deal with Adidas, 24 years after swapping the German sportswear giant for Nike.

The 5 year deal is reportedly going to be worth £300,000,000, or £60,000,000 a year.

It will see Arsenal bring in £114,000,000 a year from its 3 main sponsors – Adidas, Emirates and Visit Rwanda. This represents a huge increase on the £16.8million Arsenal received in 2013 from Nike and Emirates.

Here are my thoughts:

Ivan Gazidis showing his worth?

Some will point to the huge deals as highlighting what Ivan Gazidis does. That in his time at Arsenal he has bought in record revenues to the club.

But as the aphorism go’s; “a rising tide lifts all boats”.

Whilst Arsenal have broken club records in terms of revenues, it is in an era that all clubs are doing similar. In fact, according to Swiss Ramble only Liverpool have had slower commercial revenue growth than Arsenal since 2009.

Manchester City’s figure has to come with a pinch of salt – their huge growth has come from their mega-rich owners sponsoring themselves.

Back in 2009, Arsenal’s commercial revenue was 68% of Manchester United’s. 8 years later it is just 42%.

Liverpool, Arsenal, Chelsea & Tottenham have all increased their commercial revenue by a similar percentage, whilst Manchester United have pulled away from the other 4.

So is it a success that Ivan Gazidis has kept us on par with other clubs? Or would this additional revenue have come in regardless? IE everyone’s has risen, so it is only natural that Arsenal’s would have risen.

The new mega-record-breaking shirt deal highlights this.

Is it a success to shout about a new £60million a year shirt deal when Chelsea have the same deal? And Manchester City are set to sign a £50million deal with Puma. Everyone else’s deals have risen, so it is only natural that Arsenal’s has.

Meanwhile Manchester United recently signed a £75million deal with Adidas

The fact we have let Manchester United get away from us is a complete and utter failure of our commercial department. One that has held the club back for a decade, and why I am not too bothered if Gazidis leaves.

Double Edged Sword

Shirt deals are always a double edged sword in my opinion.

On one hand, the increased revenue coming into a club is much needed. It will allow for better players to be signed, which in turn should lead to a higher chance of success.

On the other hand, Adidas will want to see a return on their investment.

These huge kit deals we are now seeing throughout European football are the reason why we now get 3 its a year, at a cost of £60.

Back when I grew up, Arsenal would bring out one kit a year.

A home kit this year, away next year. The 3rd kit was basically the previous 2 seasons away kit, got out of storage, washed and ironed.

This meant every I got the newest kit, usually for my birthday from a grandparent.

One new kit a year, it was financially viable for all involved.

Now if you want a child to have the latest kits – and lets be realistic here, you do not want your kids to go to football training or school with an old kit – you have to buy two kits a year; or even 3 if you get them the away kit.

Regardless of rising kit costs, just buying the home and away shirt each year for your child double’s the costs from when I was a child getting 1 kit a year.

Now imagine you have 3 children. That is 6 kits a year minimum you will probably fork out for.

By the time you get a name and number on the back, you are looking at £45 a shirt. Add the shorts and socks and you are looking at £95 each. That is £190 for both the home and away, or £570 both your 3 children. For clothes which in a years time will be “out of date”.

A full kit for a 6 year old child with their favourite player on the back now costs £65. £130 for both home and away.

And these costs do not even take into account buying the 3rd kit.

Every time the new kit is released, I see fathers moaning about how much it is going to cost them to ensure their son or daughter has the latest kit. And they are right. But have they then also “celebrated” when Arsenal announce a new record kit deal?

Unfortunately, you can not have it both ways.

You can not have a £60,000,000 kit deal without 3 kits a year costing nearly £100 each.

Adidas will want to continue to see revenues increase, and the only way they can do this is by producing 3 kits a season, at high prices.

Bubble Bursting?

A final thought on this.

There will become a time when the bubble bursts on kit deals. When manufacturers are no longer selling the units to cover the cost of sponsoring the clubs.

In 2016/17 Arsenal sold 1.3 million shirts. It is actually fairly a low number considering the club has 13.7million Twitter followers. It probably highlights how many shirts get sold in foreign lands that are fake. But that is another article.

So lets say in that in the first year of the Adidas deal, 1.5million units are shifted, that Adidas have invested £40 for every shirt sold.

Now of course, Adidas do not profit 100% from every shirt sold.

They have manufacturing costs and the retailer (whether the Arsenal store, Sports Direct, JD Sports or any other retailer) also make a chunk of profit.

At current prices (£55 for the current Adidas Manchester United shirt), we are probably getting very close to the point where what Adidas are paying clubs, and what profit they are making are pretty much equal.

This will cause another rise in shirt prices as Adidas look to increase what they are charging retailers, which in turn will push the charge to consumers up. But this will only work if the consumer are still happy to buy the kit at the new price.

Like with the increasing football ticket prices, eventually you reach a point where the buyer is no longer buying, and the bubble bursts.

I wonder how much more kit manufacturers will be willing to pay the clubs until it no longer becomes financially beneficial? Or how much more kit costs can rise until families just stop buying?


 

So there we have it, the good, the bad and the ugly of Arsenal’s new £300million kit sponsorship deal…

Keenos