Arsenal announce profit of £17.8m but figures reveal reliance on player sales

The Gunners made £23.2m in player trading after selling stars including Robin van Persie

Arsenal have announced a profit of £17.8million in the club's latest half-yearly results but the figures are significantly influenced by the changes in the squad which occurred in the summer transfer window.

The Evening Standard reports the Gunners made £23.2m in player trading after selling stars including Robin van Persie and Alex Song while acquiring Lukas Podolski, Oliver Giroud and Santi Cazorla and tying six first-team players including Jack Wilshere and Theo Walcott to new deals. For accounting purposes, the cost of signing a player is spread out over the term of their contract.

Last year Arsenal announced a £49.5m profit for the six months to November 2011, thanks to selling Cesc Fabregas, Samir Nasri and Gael Clichy but the previous half-yearly figures showed a £2.5m loss as there were no major departures  in the summer of 2010.

Today’s figures showed turnover fell by £7.4m to £106.1m due to there being four fewer home fixtures than the same period last year and the importance of turning a profit on transfers is underlined by the club’s operating profit falling to just £5m compared to the previous £15.2m figure.

Arsenal already have the fourth highest wage bill of clubs in the country and the full impact of new deals handed to Wilshere, Walcott, Aaron Ramsey, Carl Jenkinson, Kieran Gibbs and Alex Oxlade-Chamberlain will not be felt on the balance sheet until the next set of accounts later this year.

However, to offset that increase, several players on considerable salaries are expected to leave the club this summer, notably Andrey Arshavin, Marouane Chamakh, Andre Santos and Sebastien Squillaci among them.

And Arsenal believe they have reached something of a financial watershed. The club’s healthy cash balance, £123.3m according to the accounts, reflects the dividends yielded by the property development scheme at Highbury Square, where all but one flat is sold and that is expected to be retained for private use.

Instead of relying on player sales to boost their financial position, Arsenal will instead be able to use funds from the new Emirates sponsorship deal, worth £150m over five years. The payment structure is frontloaded, meaning the Gunners will receive £30m this summer which has been earmarked to spend on players.

The process of paying for Emirates Stadium has been slow with Arsenal usurped by cash-rich clubs Chelsea and Manchester City only too willing to spend beyond their means in the transfer market but they now believe their self-sustainable model will soon achieve results that enables them to compete.

Chairman Peter Hill-Wood said in the report: “While we have our sights set on a 16th straight season in the Champions League, our aims are higher; our ambition is to win trophies. No one is more focused on that than our manager Arsene Wenger, our majority shareholder Stan Kroenke and the board and it is what we work towards every day.”

He continued: “Our ability to compete at the top of the game here and in Europe is underpinned by our financial performance

“Let me be quite clear that our intention is to keep our best players and recruit new talent to make us stronger. Although we were disappointed to see Robin van Persie leave, we have taken steps to secure our best players going forward and have recently signed Jack Wilshere, Theo Walcott, Kieran Gibbs, Aaron Ramsey, Alex Oxlade-Chamberlain and Carl Jenkinson to new long-term contracts.

“During this financial period we also invested £40.9m in the acquisition of new players, Lukas Podolski, Santi Cazorla and Olivier Giroud, and the extension of other player contracts. More recently we added Nacho Monreal to our ranks from Malaga. This is a strong indicator of our ambition to compete and win trophies.”

Arsenal are also confident of further boosting their position by announcing a new kit deal — possibly with adidas — to replace the Nike contract which expires in 2014.

It is expected that the contract would be similarly frontloaded as with Emirates to ensure Wenger is given immediate access to newly‑generated funds.

Full story in London Evening Standard

Suggested Topics
Life and Style
food + drink
Life and Style
love + sex A new study has revealed the average size - but does that leave men outside the 'normal' range being thought of as 'abnormal'?
News
UK Border Control
i100
Arts and Entertainment
TV
Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

Syrian conflict is the world's first 'climate change war', say scientists, but it won't be the last one

Climate change key in Syrian conflict

And it will trigger more war in future
How I outwitted the Gestapo

How I outwitted the Gestapo

My life as a Jew in wartime Berlin
The nation's favourite animal revealed

The nation's favourite animal revealed

Women like cuddly creatures whilst men like creepy-crawlies
Is this the way to get young people to vote?

Getting young people to vote

From #VOTESELFISH to Bite the Ballot
Poldark star Heida Reed: 'I don't think a single bodice gets ripped'

Poldark star Heida Reed

'I don't think a single bodice gets ripped'
The difference between America and Israel? There isn’t one

The difference between America and Israel? There isn’t one

Netanyahu knows he can get away with anything in America, says Robert Fisk
Families clubbing together to build their own affordable accommodation

Do It Yourself approach to securing a new house

Community land trusts marking a new trend for taking the initiative away from developers
Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

Money, corruption and drugs

The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

150 years after it was outlawed...

... America's first slavery museum is established in Louisiana
Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
Tony Oursler on exploring our uneasy relationship with technology with his new show

You won't believe your eyes

Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

Moores must go. He should never have been brought back to fail again

The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn