Sale of star men helps Arsenal boost profits

Chief executive Ivan Gazidis maintains Arsenal’s latest set of financial results show the club “can and will forge our own path to success” after they posted another healthy pre-tax profit.

Group profit before tax was £36.6million (€46m) in the figures for the year ending May 31, 2012 which were published yesterday, up from the equivalent 2011 figures of £14.8m (€18.6m).

Arsenal’s latest results incorporate the sales of Cesc Fabregas to Barcelona and Samir Nasri to Manchester City last summer, which helped make a profit from player trading of £26m (€32.6m).

Arsenal, though, could not escape an increase in wages from £124m (€155.8m) in 2011 to £143m (€179.7m), which represented 60.9 per cent of the club’s football revenues.

The parent holding company’s overall turnover was £243m (€305.3m), down from £255m (€320.4m) mainly because of reduced property sales, with a rise in revenues to £235.3m (€295.7m) from £225.4m (€283.2m).

“Cash and bank balances” stood at £153.6m (€193m), slightly down from a year ago, with net debt stable at £98.9m (€124.3m), most of which is tied in with the long-term mortgage following the club’s move to the Emirates Stadium.

Gazidis feels this all puts Arsenal in good stead to fulfil Uefa’s Financial Fair Play guidelines for clubs to live within their means.

He said: “Clubs, fans and other stakeholders in the game are demanding a more rational financial approach and this reinforces our conviction that our club is strongly placed to succeed over the long term.

“This revenue growth will provide sustainable funds for future investment in the team whilst keeping within the Uefa Financial Fair Play requirements.

“We can and will forge our own path to success.”

Gunners boss Arsene Wenger believes the continued positive financial situation at the club is “very pleasing”, but does represent a delicate balancing act between stability off the pitch and consistency on it.

He said: “We want to spend our money in the right way. We are not scared to spend the money. With some clubs we can’t compete on certain players — and for the rest, we only want to bring in players who add something to our squad and give a chance as well to [our] young players.”