Arsenal release financial results for 2018/19

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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).

2019 2018
£m £m
Operating profit before exceptional costs and player trading 53.9 84.1
Exceptional costs -3.2 -17.2
Amortisation and impairment of player registrations -90.9 -91.7
Sale of player registrations / Loan of players 16.8 122.3
Other -0.1 -0.1
(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.

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Xanat
Xanat
3 months ago

Well if you want to keep this kind of business model and be really succesfull you’d have to be much more effective lads..

HelderHughes
HelderHughes
3 months ago
Reply to  Xanat

This isn’t just any economic and cultural annihilation.

This is Kroenke economic and cultural annihilation.

Awesomesauce25
Awesomesauce25
3 months ago
Reply to  HelderHughes

We can complain about the Kroenke’s as much as we like, but they opened their wallet this year and management squandered it. Also, Kroenke’s Ram’s in the NFL made it to the Superbowl. I’m not a fan of the Kroenkes, but don’t really think they were the real problem this year.

Moxrex
Moxrex
3 months ago
Reply to  Awesomesauce25

Actually I would say that it had more to do with the administration team. Emery asked for a tall DM like Nzonzi. We bought him a energiser bunny (Torriera). He threw out his toys from the prom to make his point which lead to his sacking. Remember the board is never happy to relieve the money it used to be David Dein who used to fight the board and in the end he was thrown off board. Wenger tried his best but there is a limit to everything one can do. His luck ran out with few bad buys (Mustafi… Read more »

Ljungball
Ljungball
3 months ago
Reply to  Awesomesauce25

They didn’t open their wallet, Raul opened the club’s wallet.

Cygans Parting
Cygans Parting
3 months ago

Not considering the possible impact of relegation to the championship as another potential down turn in club revenue then big and little Enos???

Geefive
Geefive
3 months ago
Reply to  Cygans Parting

Maybe they are counting on the parachute payment…..hahahhacryinginside……

Hi-brid
Hi-brid
3 months ago

So just being a bit shit had no impact then?

RedHotHornBlower
RedHotHornBlower
3 months ago
Reply to  Hi-brid

In the words of the song “I don’t think you really understand”

Gooner14
Gooner14
3 months ago

I know this isn’t what people want to hear, but I really don’t think any financial figures, no matter how bad they get, will cause Stan to sell. If you look at how he made his money, it was largely in real estate. Even if football as a sport got banned tomorrow, Stan owns the land the Emirates is on, Hale End and the training ground, which is more than enough to make a profit if he sold them all off. So he can never really lose money owning Arsenal. It just so happens he has a football business thrown… Read more »

Hi-brid
Hi-brid
3 months ago
Reply to  Gooner14

Yep. Profits will be reinvested also means we will feel the pinch when we aren’t making any.

oldboygunner
oldboygunner
3 months ago
Reply to  Gooner14

Unless I’ve been fed fake news, it was Kroenke’s wife who had the money.

Make Arsenal Great Again
Make Arsenal Great Again
3 months ago
Reply to  oldboygunner

His wife is a Walton heiress. Her family owns Walmart and she is very rich. However, Stan is also a billionaire in his own right. He made his money in real estate as stated by Gooner14.

A Different George
A Different George
3 months ago

This is misleading. Stan was very rich by normal standards, but nowhere near the category of wealth needed to buy an NFL team or a club like Arsenal. After his marriage, his real estate developments were, for the most part, connected to, and dependent on, the presence of Walmart superstores.

gunnertron
gunnertron
3 months ago
Reply to  Gooner14

yup! Why did we have to end up with owners that don’t care/love football or winning?

Yankee Gooner
Yankee Gooner
3 months ago
Reply to  Gooner14

agree 100%, been saying this for years about Stan: the teams are the means to acquire the land. His Nuggets and Avalanche play in his own arena in Denver, his Rams are getting an outrageously expensive new stadium in Los Angeles area, and even though he doesn’t own the stadium and complex where the Rapids play, KSE is paid to manage the space.

Charles Charlie Charles
Charles Charlie Charles
3 months ago
Reply to  Yankee Gooner

I don’t think the land is worth quite as much as you think it is. Given the location it’s only real alternative use would be housing and a bit of shopping. By the time you’ve written off destroying a football club you have a load of debt tied to you are not making any profit selling the land, or building a few flats on top of a demolished stadium. Basically KSE are our Randy Lerners. They are fucking us up and at some point will sell as damage limitation to their wider business. Unfortunately that will be after we are… Read more »

oldboygunner
oldboygunner
3 months ago

All that money resulting in a squad that could well be heading for the second tier of English football for the first time in our history. Overpaid “superstars” not pulling their weight depriving able and willing youngsters who would at least give it their all at a fraction of the cost. The time has come to rid ourselves of the “superstats” in our squad and to start building a young team who work for each other and are true Gunners at heart.

Goonerrific
Goonerrific
3 months ago

Incorrect – the most significant risk to the tv pub is the team continuing to play shit and fans staying away.

Goonerrific
Goonerrific
3 months ago
Reply to  Goonerrific

*club – my phones gone all papabob

NorthernGooner
NorthernGooner
3 months ago
Reply to  Goonerrific

In fairness, we play like a pub team so your phone’s probably right.

Ya gooner
Ya gooner
3 months ago

These are fake documents forged by Russia, really there’s 2bn in the war chest.

Richie
3 months ago
Reply to  Ya gooner

And that war chest is buried 6 feet under the centre circle of the old Highbury pitch.

Magic City Gooner
Magic City Gooner
3 months ago
Reply to  Ya gooner

Wrong, Ukraine wrote those docs.

Eoin
Eoin
3 months ago

The only results that matter

Chrispy
Chrispy
3 months ago

Is there some kind of trophy for published accounts?

oldboygunner
oldboygunner
3 months ago
Reply to  Chrispy

Only if they’re not fake!

Paul Roberts
Paul Roberts
3 months ago
Reply to  Chrispy

I’m going to support our Publishing Accounts team for a while…:-)

Oregoon
3 months ago
Reply to  Chrispy

KSE owns the club lock, stock and barrel. If they want to cook the books, only the debtors are going to know about it, and they sure as shit wouldn’t tell us.

Ollie123
Ollie123
3 months ago

A £(25)m loss is pretty significant. Doesn’t this mean under ffp we can’t spend any money unless we sell? There is something about it being a 3 year moving average but we spent a fair whack in the summer

Not great.

HenryStatueofHighbury
HenryStatueofHighbury
3 months ago
Reply to  Ollie123

City, PSG, ( to some extent, Liverpool), Chelsea, Monaco for a while etc, don’t seem to give a rat’s ass about FFP, frankly, no one does, that’s football politics, selective targets depending on either the stature of a club or who owns it!

Richie
3 months ago
Reply to  Ollie123

I’ve no idea about FFP rules but thankfully that ‘fair whack’ is spread over the next multiple amount of years. Our net transfer spend in the summer was only £22.5m, and we actually reduced our wage bill by net £12m a year. Which makes you wonder if we’re going to offer Aubameyang a contract that’s on par with Ozil’s 350k a week.

para
para
3 months ago

It seems clear that Auba will/was always to go to bring in/offset Pepe’s cost?
Anyway, the CL teams are about to field changed teams(CL on Tues/Wed), Chelsea already lost. Hope Liverpool loses ?too now(I dont want them going unbeaten, after all, thats all we have?).

HenryStatueofHighbury
HenryStatueofHighbury
3 months ago

Can we take a moment to appreciate and start paying more attention to Arsenal Women by the way, they’re flying high and I don’t care what level of reach Women’s football has compared to Men’s, AWFC matches are a welcome relief to the drivel we are chocking on from the Men’s team every week.

Badaab
Badaab
3 months ago

We should be selecting that XI in our next match- since they actually seem to have some sort of organization and positional awareness.

The Swede
The Swede
3 months ago
Reply to  Badaab

They would probably lose 10-0 against West Ham. Its pretty silly to compare womens football with mens football. Aubameyang and co in current form is waaaay better than the womens team.

T.A.
T.A.
3 months ago

The same is true of the U23’s. Very enjoyable to watch.

Paul Roberts
Paul Roberts
3 months ago

£367.5 million came in. “Total staff costs, excluding exceptional costs, grew to £227.3 million.” I wonder what Jimmy Hill would have thought about the players earnings level today?

Leon
Leon
3 months ago

This just illustrates my opinion that the Arsenal job would be a poison challice to any manager thinking about taking this role. No money. Incompetent players. Toxic fan base. Arsenal are absolutely and utterly screwed.. Kroenke is a cancer to this club – I hate to use that analogy but he is. Sucking the life out of it. Absolutely no ambition. Absent at all times except for his rat faced bastard son lingering around like an old fart. Only ONE decent player who wants to understandably leave as soon as possible. And Freddie Ljungberg who, regardless of whether we win… Read more »

Hopefulgooner
Hopefulgooner
3 months ago

Contract Rebel! Catchy headline. Too soon to start making things toxic blogs?

Hopefulgooner
Hopefulgooner
3 months ago
Reply to  Hopefulgooner

Oops, wrong page!

GraeB
GraeB
3 months ago

Oh well, selling PEA will get us a bit back I suppose. The ensuing lack of goals will see subsequent relegation battles played out to half-filled stadium for every game. Sales of STs will halve pending return from Championship. We can then follow the Leeds model.

Sorry guys, just feeling so down at the moment but wins in next week’s 3 games will sort that.

gunnertron
gunnertron
3 months ago

I would really love if the club could be self-sustainable and competitive. but that only works if we are consistently successful. The only way to get back to a good level is big big investment from our owners. But it’s sad that they don’t want to. Only other solution is another billionaire to take over but that is either a)likely to not happen and b) will likely be another highly suspect individual. The more this continues the more I feel the issues our club have faced over the last decade have been less and less about our manager and more… Read more »

Tribe
Tribe
3 months ago

The so called loss is pretty much a distraction point in my opinion. I mean it’s not rocket sciense. One dead wood cleaning within the team and the “loss” is gone. Elneny, Mkhitaryan, Mustafi, Xhaka… They alone can cover the so called loss. When there is a will there is a way may sound a cliche but it’s the truth. If this season is lost then why not throw some players in the flames to prepare them for next season. The example is simple, the four I mentioned can be replaced with Mavropanos, Holding, Smith Rowe, Maitland Niles, Nelson. A… Read more »

Santori
Santori
3 months ago
Reply to  Tribe

What they really should have done was try and get Campos at LOSC instead of Mslintat then Sanlehi.

Santori
Santori
3 months ago
Reply to  Tribe

Mavropanos no. Imagined ability. Maybe in time but the few times he has been on, his position is more suspect than Mustafi.

Smith-Rowe again maybe after a strong loan. If you have not been watching recently, he hasn’t been fantastic this season hence less opportunities in first team. So again, no.

Holding maybe but he gets turned on a dime too easily.

Maitland Niles NO. He’s working his way out of the team. Good natural ability but too slack and lacks concentration.

So frankly, No.

Tribe
Tribe
3 months ago
Reply to  Santori

Actually, Mavropanos is young and has a potential to learn if given a chance. Better him to develop then Mustafi and Luiz who regress. Smith-Rowe doesn’t need to be regular starter, he can be a sub, and he is young also and there is a space for improvement. Holding: see Mavropanos. Maitland Niles was better then his last performances which shows how much Emery fucked up his self confidence. I still believe he can do a job. Sometimes I think he is a better option as RB then Chambers. Il all of them there is 50% possibility that they will… Read more »

Venga Bus
3 months ago

On pitch were fucked.
It’s relegation time.
I have watched footy for many years and I have never seen open spaces like these bunch of fucks leave for opposition teams to break forward into.
It’s over and financial results won’t protect against the inevitable.

Venga Bus
3 months ago

Oh and those Freakin fucks…… Utd…… back in top four soon along with Jose’s shower and challenging next year for the title.
As the song goes “doesn’t it make you feel good, doesn’t it make you feel good?’
I never thought we would end up here……. I’m absolutely sick of watching Our players who just do fuck all.
No tackles and no pride.
I can’t see anything here…… the Hammers are shit but we are the real shit….. enjoy the championship lads

Venga Bus
3 months ago

I’m on a roll……..
Isn’t it just dandy….. Jose, a cancer to football, being listened to again.
Does no one at Arsenal get how tragic that is?

Malaysian gunner
Malaysian gunner
3 months ago

These results are a reflection of the gunners underperformance on the
pitch. If this goes on,sponsors may hesitate to endorse the Arsenal
brand.
Arsenal is a premium club which has deteriorated the last ten years.
If the US owner continues the present trajectory,soon Arsenal will
be outside the top Euro 20 clubs

Santori
Santori
3 months ago

Wenger built the club up on his continued CL qualification and early success which afforded us the ability to attract loans for a self build project.

BUT at current rate, its true, we are going the reverse.

Onenil
Onenil
3 months ago

On this trajectory we’ll be outside the top 20 English clubs?

Santori
Santori
3 months ago

Could have afforded to have kept Iwobi for one more season then instead of risking Pepe and Saka both in first season.

Or spent a bit more up front but significantly lower cost for Ziyech or Fekir.

And/Or then put some money into an actually good and available Cback for now.

Santori
Santori
3 months ago

…and they can expect revenue to drop further at… who wants to come watch our tepid brand of footy these days and Thursday night lights.

Mintoes
Mintoes
3 months ago

Has Rafa arrived yet? Why not?

shokim
shokim
3 months ago
Reply to  Mintoes

Rafa is not a “yes” man who will kowtow to Don Raul & Co.