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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.
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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
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
