Arsenal have released details of their financial results for the year ended 31st May 2013.
Speaking about the results, which are solid if unspectacular (a bit like the win over Stoke), new club Chairman Sir Chips Keswick remarked:
“It is my job to ensure we steer further along the course we have set. We must continue to grow commercially to provide the Club with the best opportunity to achieve success and we must do this in a way which remains true to our values and which ensures and protects the long-term sustainability of the Club.
“We face a competitive landscape across the top of the Premier League and across Europe’s elite clubs which is tougher than ever. Despite fair play initiatives the financial competition for top players remains intense and transfer prices and player wages continue to move ever higher.
“It is therefore positive that the strong financial platform we have created in recent years allows us to continue to be competitive at the highest level.”
Highlighting in particular the pre-tax profit of £6.7 million, despite it being considerably lower than 2012 thanks to a rise in wage bill and less cash from player sales, Sir Chips paid homage to the hard work of the club’s commercial division.
“Despite one-off costs associated with some rationalisation of the squad at the end of the season, we have reported a profit before tax of £6.7 million. This result has its foundation in the significant progress made on our commercial agenda.
“We have signed a new partnership with Emirates and have brought other commercial partners to the Club. The success of our recent tours to Asia and the growth of our global following have been key factors in this regard.”
It’s fair to say that Arsenal’s next set of results, which will include details of the new kit deal with Puma (?), should make for more interesting reading…
ARSENAL HOLDINGS plc ANNOUNCE FULL YEAR PROFITS
- Group profit before tax was £6.7 million (2012 – £36.6 million).
- Profit on sale of player registrations amounted to £47.0 million (2012 – £65.5 million).
- One-off charges related to the impairment of certain player registrations and associated costs amounted to £10.0 million (2012 – £5.5 million).
- £58.7 million of investment in new players and extended contracts pushed amortisation charges up to £41.3 million (2012 – £36.8 million).
- Turnover from football increased to £242.8 million (2012 – £235.3 million) driven mainly by commercial activity including the Club’s extended partnership with Emirates.
- Taking account of increased costs, principally wage costs, operating profits (before depreciation and player trading) from football decreased to £25.2 million (2012 – £32.3 million).
- Property revenue rose to £37.5 million (2012 – £7.7 million) inclusive of the sale of the market housing site at Queensland Road. However, the Queensland Road sale was essentially at break even in profit and loss terms. Overall operating profits from property increased to £4.4 million (2012 – £2.2 million).
- The Group has no short-term debt and continues to have a robust financial platform from cash reserves, excluding the balances designated as debt service reserves, of £119.7 million (2012 – £120.1 million).
For lightning-quick analysis of the results, check the Twitter timeline of financial-Bergkamp @SwissRamble