Gunners growth paid for Ozil

Arsenal have reported a rise in turnover and say their new commercial muscle was a significant factor in the signing of Mesut Ozil for a club record £42.5 million (€50m) fee.

Despite reduced profits due to a drop in income from player sales and an increase in players’ wages, Arsenal saw overall turnover rise to £242.8m (€288.6m) in the year ending May 31 2013 from £235.3m (€279.7m) the previous year.

Commercial and retail revenue rose 20% to £62m (€73.7m), boosted by the new sponsorship deal with Emirates airline.

That may still be dwarfed by Manchester United’s record commercial income of £153m (€181.8m), but Arsenal chief executive Ivan Gazidis said the club’s strong financial position meant it was now a major player on the world stage in terms of signing world-class players.

“The signing of Ozil for a club record fee is a significant step for us,” said Gazidis.

“This signing was a direct result of all the hard work we have put in over recent years to build the commercial capability of the club to deliver the consistent revenues and financial strength required to compete for the world’s best players.

“That said, we will continue to stand by our principles in terms of nurturing young talent. That has been very evident with our extensions to the contracts of key young players over the last year and the emergence of teenagers Serge Gnabry and Gedion Zelalem into the first team squad. This is a key component of what we stand for at Arsenal Football Club and that will continue to be the case.”

Group profits before tax dropped to £6.7m (€7.9m) from £36.6m (€43.5m) the previous year due to salary increases and less income from player sales.

Arsenal still have the highest cash reserves of any club in the Premier League, totalling £119.7m (€142.3m) — with a further £35m (€41.6m) held back as debt service reserves — while United has the next highest at £94m (€111.7m).