Arsenal have announced a post-tax loss of £45.5 million for the year ended 31 May 2022.
While a loss of this magnitude is concerning, the results mark a considerable improvement on the £107.3 million loss registered this time last year after the club had been badly hit by the Covid-19 pandemic.
The Gunners’ lack of European football in 2021/22 has been identified as the “principal contributory factor in terms of the overall result for the year”. In essence, if we’d been in a UEFA competition the broadcast revenue and ticket sales probably would have seen us break even.
Overall, football revenue for the year was £369.1 million; up £41.5 million on 2021. This was down to fans being able to attend 23 domestic games with an average attendance listed as 59,568.
The club also make a point of underlining KSE’s position on squad strengthening after two summers of investment on the player front.
“This investment recognises that the Club has not been where it wanted to be in terms of on-field competitiveness and that, as a minimum, qualification for UEFA competition needed to be regained, as a pre-requisite to re-establishing a self-sufficient financial base. This investment would not have been possible without the support and commitment of the Club’s ownership, Kroenke Sports & Entertainment.”
You can read the club’s full statement, here.
|Net finance charges||8.70||12.00||13.60||39.80||5.20|
Slightly lower than pre-pandemic levels but presumably that’s down to fewer home matches as a result of being out of Europe and not progressing far in the cups. We’d expect this to grow next year given Europa League football and the 4% season ticket price increase.
Higher than 2020 as a result of increased PL deals domestically and abroad but lower than 2021 when we were in Europe. Also, there were more games in the last financial year because of the way the pandemic delayed the season. Qualify for Europe this year (hopefully the Champions League) and we should see a nice jump on this front this time next year.
Hovering around same level as 2020 and slightly higher than last year. The adidas deal has just been renewed (terms unclear but could be more performance based than in the past) and we fully expect Emirates to further commit to the club in the near future. Current deals end in 2024 so unclear whether revised terms would be seen on the books next year.
Clearly we’ve been making an effort to bring these down. The club specifically mention “a process of restructuring the men’s first-team squad to improve the efficiency of spend.” We have a number of young players on ‘legacy’ deals – Saliba, Martinelli and Saka – all of whom will be expecting big pay rises. There will also be chunky bonuses to be paid if we happen to make the Champions League. Hard to say at this point whether wages will creep up again, but it’s likely.
Not an area we’ve excelled in for a while. The club continue to claim it’s down to being “adversely impacted by market conditions”. That’s probably true but we’ve also not helped ourselves in the recent past with the way player contracts have run down. Looking at the current squad, we’re in a much better position on that front so if we do need to sell, hopefully we hold the upper hand in negotiations.
Given how many players we’ve sent out on loan in the last year, it’s a remarkably low figure. Perhaps we don’t want long-term development to be hindered by bartering over fees. Never usually that high, as you can see by the last five years.
Net finance charges
Significantly down on last year where KSE paid a big chunk of cash to refinance the outstanding stadium debt repayments and lower than what we’d been paying in the years prior.
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— Swiss Ramble (@SwissRamble) November 21, 2022