Arsenal have published their financial results for the year ended 31 May 2019.
These are the first set of financial results for ‘Arsenal Football Club PLC’ under the private ownership of Stan Kroenke’s KSE and have been made available via Companies House. (Full report here)
The key takeaway is a loss for the year before taxation of £23.5 million compared with last year’s £97.4 million profit. In the main, this is attributable to a downturn in player sales.
Revenue for the year was £367.5 million (2018 – £388.6 million). The club explained that this is down to the window for season ticket renewals being later than usual because we were in the Europa League final. Basically, we couldn’t set the price of this season’s tickets until we knew if we had Champions League football or not.
The impact of the lower appearance fees was partially offset by higher broadcasting revenues and increased commercial revenue which included the Visit Rwanda sleeve partnership as a new category.
Operating profits were also impacted by continued investment in player wages which meant that total staff costs, excluding exceptional costs, grew to £227.3 million (2018 – £218.9 million).
|Operating profit before exceptional costs and player trading||53.9||84.1|
|Amortisation and impairment of player registrations||-90.9||-91.7|
|Sale of player registrations / Loan of players||16.8||122.3|
|(Loss)/profit before tax||23.5||97.4|
A couple of other interesting bits and bobs.
- The average ticket sales over 30 home games was 58,943 against 58,012 in Wenger’s final season. Bear in mind we added an extra half row to Club Level in Emery’s first season so that will likely have played a part.
- On average in 2019, Arsenal employed 707 people each month. This includes playing staff, training staff, administrative staff and ground staff.
- The Adidas kit deal and renewed terms with Emirates didn’t kick in until July, so that financial boost should be reflected in next year’s results.
- Arsenal says they are monitoring the impact of the UK’s decision to leave the European Union and the possible consequences.
They state: “This has seen the value of the sterling weaken against the Euro; on the one hand increasing the cost of player transfers from the EU and, on the other, increasing the sterling value of European competition distributions paid out to clubs by UEFA in Euros. The most significant risk to the company would ‘appear to be a downturn to the UK or wider economy impacting ticket revenues and / or the value of broadcasting and / or sponsorship rights. Any potential impact on the recruitment and / or retention of players is also being monitored closely.”
Under the title ‘Principal Activity and Strategy’ the report says: “The Board’s long term strategy is to continue to develop Arsenal Football Club as a leading club on both the domestic and global stages. The Board are committed to a business model which invests the funds generated by the business back into the Club with the aim of achieving an increased level of on-field success with the ultimate goal of winning trophies and using that on-field success to increase the Club’s engaged worldwide fan base.”
No doubt @SwissRamble will be working his way through the full report. We look forward to his analysis.