Arsenal debt increases but 'tough years' have now finished

Arsenal said yesterday that their debt for building Emirates Stadium and for the residential redevelopment of Highbury would eventually peak at £385m - but the club insisted that the tough years were over.

The managing director, Keith Edelman, claimed that gate revenue from the 60,000-seat stadium would be "massively higher than any other club in the Premiership and that's why we can take that level of debt".

Edelman said that at Highbury the club earned £44m a year with no debt - but at Emirates that figure rises to £80m. Once debt repayment is covered, he said, Arsenal are still "£20m a year better off" with their future not dependent on qualifying for the Champions' League. The club have calculated they can finish10th or 11th in the Premiership - or even get relegated - and still remain "robust".

The extra revenue, Edelman said, would also help to strengthen the manager Arsène Wenger's hand in the transfer market.

Talks have also taken place with the Football Association over the possibility of England playing matches at the stadium following the further delays to Wembley. England have a home friendly lined up for February with opposition and venue to be decided.

Edelman said: "I think we had a couple of years when life was pretty tough especially when we were trying to see whether we could get the thing funded. That was not the most pleasant of years."

Edelman again dismissed speculation that the club had held talks over a possible takeover. "The reality is we have not had an approach and have not had any discussions. End of story," Edelman said.

He was speaking after the club published their annual results up to 31 May 2006. They revealed that debt, at present, stands at £262.1m, an increase of more than £100m on last year, as they ploughed money into finishing the new stadium.

Arsenal also made £32m from their run to the Champions' League final, £12.5m more than the previous year, helping them to a record £132m turnover and a pre-tax profit, on football, of £16.8m. But Arsenal have a bank loan arranged of £125m to complete the redevelopment of Highbury into 711 homes, which will eventually net the club an expected £100m in profit.