Arsenal announce rise in profits that will see Gunners 'forge own path to success'
Thursday 27 September 2012
Chief executive Ivan Gazidis maintains Arsenal's latest set of financial results show the club “can and will forge our own path to success” after they posted another healthy pre-tax profit.
Group profit before tax was £36.6million in the figures for the year ending May 31, 2012 which were published today, up from the equivalent 2011 figures of £14.8million.
Arsenal, though, could not escape an inevitable increase in wages from £124million in 2011 to £143million, which represented 60.9 per cent of the club's football revenues.
The parent holding company's overall turnover was £243million, down from £255million mainly because of reduced property sales, with a rise in revenues to £235.3million from £225.4million.
"Cash and bank balances" stood at £153.6million, slightly down from a year ago, with net debt stable at £98.9million, most of which is tied in with the long-term mortgage following the club's move to the Emirates Stadium.
Gazidis feels this all puts Arsenal in good stead to fulfil UEFA's Financial Fair Play guidelines for clubs to live within their means.
He said in a statement: "Clubs, fans and other stakeholders in the game are demanding a more rational financial approach and this reinforces our conviction that our club is strongly placed to succeed over the long term.
"We have qualified for the Champions League for the 15th season in a row whilst off the pitch we have a business strategy and infrastructure that is helping us to grow our revenues.
"This revenue growth will provide sustainable funds for future investment in the team whilst keeping within the UEFA Financial Fair Play requirements.
"We can and will forge our own path to success."
Arsenal's latest results incorporate the sales of Cesc Fabregas to Barcelona and Samir Nasri to Manchester City last summer, which helped make a profit from player trading of £26million.
The Gunners will have been further boosted in the next set of figures by the £24million sale of former captain Robin van Persie to Manchester United and Alex Song's £13million move to Barcelona - although that will be set against the summer signings of Lukas Podolski, Santi Cazorla and Olivier Giroud, who scored his first Arsenal goal in Wednesday night's Capital One Cup win over Coventry.
There is also around £26million of further property sales from the Queensland Road development to take into account going forwards.
Gunners boss Arsene Wenger believes the continued positive financial situation at the Emirates Stadium is "very pleasing", but does represent a delicate balancing act between stability off the pitch and consistency on it.
Speaking ahead of this weekend's Barclays Premier League clash against Chelsea, he said: "We want to spend our money in the right way. We are not scared to spend the money.
"With some clubs we can't compete on certain players - and for the rest, we only want to bring in players who add something to our squad and give a chance as well to the young players we have.
"We have good players, because to buy one more, we have to get one out."
Wenger has long championed the need for all clubs to live within their means.
"Our numbers are good," he said.
"Under the actual circumstances this is quite positive because the whole (global) environment is not positive.
"We are very lucky because we have a good support and the income of our gates is very high.
"We have to maintain that by keeping our fans happy and to continue to manage well in the way that we do it."
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