Arsenal have released a statement this afternoon confirming that the club have reached agreement with the playing staff over pay cuts.
The issue has been in the news for the last week and discussions over what is a complex issue have been ongoing.
Mikel Arteta himself became involved in negotiations, and he too will be subject to a reduction in salary along with the players, with cuts in place from this month onwards.
We are pleased to announce that we have reached a voluntary agreement with our first-team players, head coach and core coaching staff to help support the club at this critical time.
The move follows positive and constructive discussions. In these conversations there has been a clear appreciation of the gravity of the current situation caused by the Covid-19 pandemic and a strong desire for players and staff to show their backing for the Arsenal family.
Reductions of total annual earnings by 12.5 per cent will come into effect this month, with the contractual paperwork being completed in the coming days. If we meet specific targets in the seasons ahead, primarily linked to success on the pitch, the club will repay agreed amounts. We will be able to make those repayments as hitting these targets, which the players can directly influence, will mean our financial position will be stronger.
The agreement is based on the assumption we will finish the season 2019/20 and receive the full broadcasting revenues. The resulting savings will help cover some of the financial risks we have this season in relation to our matchday and commercial income.
We are proud and grateful to our players and staff for pulling together to support our club, our people and our community in these unprecedented times which are some of the most challenging we have faced in our history.
—
With all the spotlight on footballers at this difficult time, it’s worth pointing out that the Arsenal squad are the first in the Premier League to agree to pay cuts.
Deferral agreements have been put in place at some other clubs, but until now no group of players had agreed to reductions in salary.
As yet it’s unclear when football will begin again, and revenue streams have dried up. Season tickets, match day revenue, broadcast revenue, corporate hospitality, and other money generators have been affected, putting real pressure on finances.
Owners KSE were reported to have provided a cash injection but Arseblog News understands the financial backing given is more closely related to underwriting existing bank/bondholder demands as you would expect from a business owner.
The players, meanwhile, having already contributed to the Players Together fund to raise money for NHS charities, as well as their individual good causes, have now taken cuts to help cash flow and to protect other jobs at the club.
Maybe Matt Hancock can now concentrate on getting proper PPE for NHS staff working tirelessly to combat Covid-19, instead of mouthing off about football players.
Delighted to see us once again leading the way. All the naysayers hung up on Kroenke’s billions missed the point; in Arteta’s own words, “This club is class.”
Masterfully handled by Mikel and big ups to future captain Heccy B.
https://youtu.be/QisR_0CnfwM
Not sure there’s any need for gloating. The players have done the right thing, but it doesn’t mean being ‘hung up’ on Kroenke’s billions is the wrong point of view when it would cost him a pittance to cover the money saved by these cuts.
The man is a multi-BILLIONAIRE, of course we should be hung up on that point, £20+ million is like pocket change to him. To put that into perspective, have a watch of this – https://www.youtube.com/watch?v=W56g5KdqZoo
£1 billion would be 10,000 X £100,000
£100billion would be 1million x £100,000
How long did it take that guy in the tick tick video to count out all that rice lol
I agree with the principle/sentiment entirely.
I’m all about a wealth tax; income inequality in our time is grotesque. Now is a great time to institute one. #vivabernie
I just find the club a weird place to take that pound of flesh.
If you want income equality? Try moving to communist Cuba, North Korea or Venezuela….
But you might want to do some research first, having the state control the means of production and every aspect of your life, really isn’t all the Corbynites make it out to be.
If you want to make an investment in yourself? Only to pay 70-90% tax? To ensure everyone has the same amount? You’re out of our mind.
Everyones a socialist, but curiously few go onto the government website to donate more taxes to the treasury, to make things more fair….
Asking billionaires to contribute more to a system that both preserves their privileges as well as provides a decent life for working families hardly makes one North Korea.
Wealth creation is a good thing, and asking for wage equality does make us North Korea.
If you don’t own your time? If you don’t own the fruits of your labour? If you can’t set the terms of your labour? Then we’re not free people.
And once we take back full autonomy from the sclerotic EU, we’ll be able to tax all businesses who operate in the U.K., on their U.K. profits, something we’re currently handicapped from doing.
Absolutely not true.
While there are some common policies in terms of taxation, each member state is free to choose its own tax system and corporate tax rates. If the UK, or Ireland for that matter, wanted to properly pursue gigantic corporations for proper taxation, they could do it.
It has nothing to do with EU regulations.
We pay £11billion a year, to run an £80 billion trade deficit with the other 27 countries combined, the idea we should pay any money so the EU get unfettered access to their single largest, and most profitable trading partner, and unfettered access to the worlds largest financial centre, is insane. The customs union is basically a racket, that defends producers in rich countries, against producers in poor countries, at the cost the poorest consumers in the rich countries, you also have 28 separate countries all subsidising inefficient European businesses, at the cost to their own citizens, and the common… Read more »
How’s it going for you, did you celebrate your Indepence Day 31 January, or was that in June 2016? Well at least you now have your sovereignty to procure all the required PPE without that petty and corrupt EU to help.
*The rest of your argument is nonsensical, so can’t be arsed*
I said wealth tax. Nothing to do with wages. 1-2% annual tax on massive fortunes such as Kroenke’s would reduce income tax burden on working families and allow them to accumulate wealth. Speaking as an American, 40% of us don’t have $400 in the bank to cover an unexpected expense (much less a global pandemic) – source: Federal Reserve via ABC news We live in systems where work doesn’t pay. Returns to capital have far exceeded wage growth for decades. Do you think Arsenal’s appreciation as an enterprise has anything to do with Kroenke’s labor? While I disagree about breaking… Read more »
”
And once we take back full autonomy from the sclerotic EU, we’ll be able to tax all businesses who operate in the U.K., on their U.K. profits, something we’re currently handicapped from doing.”
Rees-Mogg is such an avid supporter of brexit because he and his wealthy investor chums of the ERG are just dying to pay more tax.
Righto!
At least Rees-Mogg has 20+ years experience working in the financial markets, and owning a successful business that he started from scratch.
Which is more than you can say about the majority of our drippy career politicians and bureaucrats.
haha ‘started from scratch’.
Definitely not with inherited money. The same Rees-Mogg who moved his investment funds to Dublin ahead of Brexit. Absolute wanker of a Tory who doesn’t give a fuck about anyone, including you, Rich.
The Ireland fund story is just more Guardian propaganda, and has been completely debunked. Somerset Capital Management have offices in London and Singapore, they don’t have a Dublin office, but they do have funds set up in Dublin, as per the requirements of their customers, they’re an investment company, so they have funds setup all over the world, it’s what they do, it’s how they make their money. I believe in sensible Conservative governance, and a smaller state, because MP’s and bureaucrats are generally useless, and should stay out of our lives. I certain don’t trust the Tories, I’m not… Read more »
Guardian propaganda, jesus christ: https://www.irishtimes.com/business/financial-services/rees-mogg-declares-himself-fan-of-irish-investment-regime-1.3822113
https://www.independent.co.uk/news/uk/politics/jacob-rees-mogg-brexit-scm-ireland-investment-fund-conservative-mp-a8461021.html
https://www.ft.com/content/38987fe2-6f19-11e8-92d3-6c13e5c92914
Blogs did you even take the time to read the article you tried using as “proof”?
Or are you just so blinded by hate, you don’t care about facts?
You do know that just because you’re desperate to believe something, that that doesn’t make it true?
You might want to read a book on confirmation bias, or even just a book to start with…,
And next time you put up a link as “proof” you might want to try actually reading it first…..
The UK leaving the EU will hopefully mean Butthurt Britain won’t be able to blame Europe for its failings anymore.
Yeah I reckon “started his business from scratch” and man of the people Mogg will do very well out of brexit. Certainly a lot better than you and I will.
Sorry you took that as gloating Blogs – not my intent. Long-time reader and Patreon supporter – all my respect. Just happen to disagree with you in this case. I think my comment was both civil and positive and I stand by it. I heard you out thoroughly. Even read all the relevant posts and listened to the Arsecast with Rory Smith – even the parts I thought were unfair (e.g. the part on Hector being out of his depth bc he doesn’t have a financial/union background negotiating skills. For me, values and acting out of social solidarity will do… Read more »
Hey, always happy to discuss and thanks for the support, it means a lot.
I’m with you on Arsenal as a sustainable club. I strongly believe that’s the way all clubs should operate.
In this situation though, I think the unprecedented nature of what’s going on allows for some leeway. And when you have billions of dollars, I feel like the spotlight should hit you first and foremost.
I get that. I’m also glad that the players realize that AFC doing things the right way means a lot to us as Arsenal fans in particular, and they have a significant role to play in that.
Because of their actions, the spotlight is now even moreso on the owners.
Yet again, Arsenal lead the way.
Good stuff
Blogs, are the board and executive level taking a pay cut?
Club already announced executives will waive a third of their salaries for 12 months: https://www.arsenal.com/news/update-your-club-0
33%, no?
Clever move by Arsenal players. If it becomes clear the season cannot be completed, other clubs will be looking for much bigger reductions.
Well done Arsenal for leading the way.
I especially like the dig at the conservatives at the end of the article.
On the other hand, it could be seen as a cheap shot, criticising a guy who for not much more than£100k s year and after recovering from the virus himself, has to carry responsibility for the nation’s public health system, during an unprecedented, global health emergency, when everyone is learning as they go along, problems are complex and it’s easy to criticise with the benefit of hindsight.
Or cheap shot could be him targeting football players when he and his cohorts underfund the NHS and fail to adequately tax the 1%, one of who is now asking for a government bailout. If Handcock (yep Handcock) was anymore incompetent they could always appoint Failing Grayling. He should spend less time sucking up to tech companies, like that pushing crazy Babylon app.
He was asked the question whether it was right for premier league clubs, to cut the pay of non playing staff and to place them on furlough (thereby taking tax payers money) whilst highly paid footballers continue to be paid in full. In response to that specific question, he said footballers need to play their part etc. He didn’t “target” footballers, he was responding to a specific question about them from The Herald and the response seems fair enough to me. I guess it should be no surprise, that those with their own agenda should choose to make mischief over… Read more »
No agenda on my part, Handcock and his pals are wankers who suddenly understand the worth of essential workers, neither he or his cohorts valued the NHS before. Wearing a NHS lapel pin just demonstrated his wankishness, not to mentioned his sudden brainstorm to “hey about we all wear a Care lapel pin as well”. A real Peter Pan. How about they incrrase the top income tax rate, corporation tax and pursue the multinationals persons and companies who benefit from the country but don’t pay their fair share of taxes? Hopefully after this global debacl the NHS will be more… Read more »
But hey, you can’t criticise Ozil because…ummm, errr. Dunno really but let’s all criticise the government because it’s far easier than recognising greed when you see it.
In the meantime Matt Handcock can piss off!
Didn’t Mesut Ozil decline this offer?
Actually he did.
Apparently so, and a couple of unnamed players as well.
Proof? It is not because his agent ADVISED 2 weeks ago his players to do so that he actually did.
Saw it in several papers today, along with 2 other players.
I would gladly take a look 12.5% pay cut for the rest of my career if I was making 200k per week. Fk, I would play for Arsenal for free and be homeless if I had the chance. That said, I think there is too much attention on footballers getting pay cuts. What about the other fat cat not football businessmen why is no one talking about lawyers or plastic surgeons taking a pay cut?
In the case of lawyers probably because the6 are taking a cut in many instances with less work flowing through the door. This is what happens during a recession. Less revenue equals pay cuts.
in the words if J M Keynes : “when facts change, I change my mind. What do you do?”