Arsenal feel squeeze as wages rise to £125m while profits stagnate
Saturday 01 October 2011
Arsenal's wage bill increased last season to £124.4m, according to the club's latest financial results which were announced yesterday.
The figures included a £42.6m drop in pre-tax football profit, with the football business delivering a turnover increase of just 1 per cent.
In the year ending 31 May 2011, Arsenal spent £124.4m on wages, a 12.4 per cent increase from the £110.7m figure recorded the previous year, making them the fourth highest-paying club in the Premier League. The financial blogger Andy Green, known as "andersred", pointed out this was only £29m less than Manchester United's 2009-10 wage bill of £153m, and, as United paid £10m in bonuses last season, this points to a £19m basic difference. Arsenal's wage bill was 55.2 per cent of their football turnover, up from 49.7 per cent.
That proportion was likely to increase, given the slow growth in Arsenal's football turnover to £225.4m, up by just 1.1 per cent. With players' wages on the increase, the operating profit (before depreciation, player trading and exceptional items) of the football segment decreased by £11m to £45.8m.
Once transfers were factored in, Arsenal's football profit before tax was down to £2.2m. They recorded a £14.7m loss from player trading, having made a £13.6m profit last year. These latest figures did not include the money from the summer sales of Gaël Clichy, Samir Nasri and Cesc Fabregas.
The property segment of Arsenal returned a larger pre-tax profit than the football segment: £12.6m. The overall net debt was down to £97.8m with the group's cash and bank balance up to £160.2m. Manager Arsène Wenger was asked yesterday whether having that much money but not spending it was a failure. "The whole world is bankrupt and the one who is not is accused of not being bankrupt," he responded. "I can't understand it."
Latest in Sport
Undertaker vs Bray Wyatt: Examining the Impact of 'Taker's WWE WrestleMania return
Arsenal vs Monaco: Theo Walcott 'involved in spat' with fans after Champions League defeat
It's time to stop the 'small club' jibes after Chelsea signed £200m Yokohama deal
Paul Scholes: Jose Mourinho's attempt to influence football's decision-makers is not working. In fact, it may have backfired
After record-breaking £5.136bn Premier League TV deal, why are Everton the only British club to win in Europe?
- 1 The black and blue dress: Makers considering a white and gold version
- 2 Husband and wife die holding hands within hours of each other after 67 years of marriage
- 3 What color is The Dress, white and gold or blue and black? An eyewitness gives a definitive answer
Oscars 2015: Birdman beats Boyhood as Eddie Redmayne and Patricia Arquette win big - as it happened
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
This is what it's like to be dead, according to a guy who died for a bit
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia