Welcome!

FM Base has been serving the Football Manager community for nearly two decades and we're keen to ensure that we are here for two decades more.

Become a part of our community today, and you'll quickly realise that the Football Manager community is the best community.

Register

Arsenal set to announce surprise pre-tax loss

Joined
Dec 4, 2010
Messages
2,135
Reaction score
0
Points
36
Arsenal will announce a surprise pre-tax loss on Monday when they publish their half-yearly accounts, although the figures will still underline the club’s overall financial strength.

Loss: Arsenal are set to announce a surprise operating loss on Monday Photo: ALAMY









After a record profit of £56 million for the accounting year 2009-10, the club are expected to confirm a small loss over the six months from June 2010.

The results are unusual for Arsenal, but were expected by directors who can still point to a large transfer proceeds account which is available to Arsène Wenger and is believed to be worth around £40 million. The club are still running at an operating profit.

Arsenal’s net debt is also understood to have fallen and the expectation is that the club will still post a small profit of below £10 million once the full yearly accounts for 2010-11 are published in September.

Several factors explain the fall in profits between June and November last year. Unlike the previous year, when Emmanuel Adebayor and Kolo Toure were both sold to Manchester City, there were no major player sales.

The revenue from the development of Highbury Square has slowed considerably now that the apartments are sold. The club’s strategy of investing significantly in long-term contracts for existing players has led to a further rise in the wage bill.

Related Articles


It was also significant that Arsenal had played relatively few home games until the end of November this season.
A statement from the Arsenal Supporters’ Trust read: “The reduced profits for this interim year reflect the positive fact that the club did not sell a first team performer and placed many of its first team squad on enhanced contracts.”



Source: http://www.telegraph.co.uk/sport/fo...al-set-to-announce-surprise-pre-tax-loss.html
 
Member
Joined
Feb 25, 2009
Messages
1,465
Reaction score
0
Points
36
“The reduced profits for this interim year reflect the positive fact that the club did not sell a first team performer and placed many of its first team squad on enhanced contracts.”
Still only a small loss, as always Arsenal pwn the rest of the PL.
 
Member
Joined
Nov 23, 2009
Messages
7,028
Reaction score
0
Points
0
Heard a lot about this in the past week.

Tim Payton says:

It’s not all bad news. Arsenal’s minimal investment in new ‘purchased’ players should see amortisation charges fall and the new TV deal should add to the running rate of income and perhaps most significantly, although Arsenal’s profits may have disappeared, spare cash should have grown from both selling down the property stocks (possibly £15m), and banking a tax refund (£14m with any luck)...

...Arsenal Supporters’ Trust members should also be reassured that the Transfer Proceeds Accounts (TPA) and the club’s underlying financial strength mean that Arsène Wenger will have sufficient funds for further squad investment (transfer and wages) in summer 2011...
Compared to City and Utd, I'm really not at all worried. Arsenal should have no problem complying with the new FFP rules, and we've been making record profits for the past two/three years.
 
Hobbs
Joined
Feb 27, 2009
Messages
5,808
Reaction score
0
Points
0
Still in great financial position. Too much shouldn't be read into this imo.
 

Ben

I am a biased ****.
Joined
Jan 21, 2009
Messages
6,353
Reaction score
0
Points
0
Absolutely nothing to worry about, the reasoning for the small loss is in the OP.
 
Top