Arsenal have announced a record post-tax loss of £107.3 million for the year ended 31 May, 2021.
As expected, the club attributes the results to the effects of the Covid-19 pandemic, which caused the majority of matches for the 2020/21 season to be played behind closed doors.
In addition to lost matchday income, the club experienced reduced commercial revenue and incurred costs as part of KSE’s refinancing the stadium debt. There were also costs associated with introducing Covid-19 protocols and staff restructuring.
Some cash was recouped from running a skeleton operation on matchdays compared to normal and the wage reduction that was agreed by the majority of Mikel Arteta’s squad.
Having lost £47.3 million in 2020 and £27.1 million in 2019, it’s not been a good run for the club. In each of the seasons from 2002-2018 we turned a profit.
Despite the poor performance, the club maintains that thanks to KSE ‘unwavering support and commitment’ we should be able to ride things out.
|Net finance charges||13.6||39.8|
Only a handful of matches in 2019/20 took place with supporters present and even then with reduced capacity, hence the huge drop.
There was an increase as a result of additional matches fitting into this financial year following the earlier season hiatus and our run to the semi-finals of the Europa League.
A slight drop based on pandemic-related factors.
The club’s wage bill increased despite the first team squad taking a wage cut for a period of the 2019/20 season. Given our recent policy of recruiting younger players and ridding ourselves of those on big money, we’d expect this to come down a fair bit next year.
Player sales / loans
The club point out that on average over the last five years, we’ve made £42.2 million from sales. The suggestion is that it’s been harder to flog players for big cash when all clubs ar struggling financially due to the pandemic.
Net finance charges
Back in July 2020, KSE took the decision to refinance the outstanding £144.5 million stadium debt. There was a hefty charge for doing so and we don’t currently know the terms of the new interest rate.