Arsenal’s latest financial results for 2018/19 reveal a first overall loss since 2002.
The club have confirmed that after taxation we lost £27.1 million compared to a £56.5 million profit the year before.
Thanks to a run to the final of the Europa League and a sleeve sponsorship deal with Visit Rwanda, football revenue for the year was slightly up (£394.7 million compared to £388.2 million in 2018), however, an increase in player wages wiped that out.
The key difference year-on-year was our player trading activity. The total profit on sale of player registrations was £12.2 million (2018 – £120.0 million) and player loans amounted to £4.6 million (2018 – £2.3 million).
When you combine a lack of player sale profits with second-tier European football, you have a major problem. As was highlighted when we announced financial results in December, we are very reliant on sales to free up cash for further squad building.
As we all know, not playing in the Champions League has hit us very hard on the financial front and following last night’s Europa League exit (which will also prove costly) and our current league position, there’s little chance of that changing anytime soon.
Our new deal with Adidas and revised terms with Emirates will help us this time next year but there’s a fairly high chance we’ll be posting similar if not worse financial results in 12 months time.
Chairman Sir Chips Keswick referenced the above in his shirt statement:
“Our player trading profit for this financial year was limited and this combined with a second consecutive season of Europa League football has meant the club recorded its first overall loss since 2002.
“For 2019/20 we will see increased commercial revenues from Adidas and our renewed deal with Emirates but another season outside the Champions League will continue to apply pressure to our financial results.”