Gunners cash in to top rich list and break £200m barrier
24/09/2007 |
 |
 |
Arsenal today revealed their status as Britain's richest football club following figures released this morning which show their move to the Emirates Stadium helped increase turnover to more than £200m.
The report - for the year ending May 31, 2007 - also revealed group operating profits up by an astonishing 274%, to £51.2m. These well exceed the likes of Manchester United and Chelsea, whose respective turnover for the same period was £167.8m and £152.8m. This morning's announcement also rockets Arsenal into the same financial league as Real Madrid, whose turnover was £202m for the 2005-06 season.
Arsenal's move to their new 60,000-seater home from Highbury has proved more than a financially sound decision, with the long-term debt related to the move having also been refinanced into bonds which provide "a significant reduction" in annual service costs. The club generated match-day revenues of £90.6m in their first season, representing some £3.1m-per-game, which was more than double that of Highbury.
Meanwhile, some 91% of the units at The Stadium - Highbury Square redevelopment are already pre-sold, with final completion sales expected to comfortably exceed £300m.
Arsenal - currently top of the Premier League - saw their cash balances up to £73.9m, from £35.6m in 2006. The figures are "before player trading and depreciation", and as such do not take into account the £16m sale of Thierry Henry to Barcelona during the summer or other recent transfer dealings as manager Arsène Wenger reshaped his squad. They would also more than back up the stance of the current board that the club does not need a wealthy backer to compete with the best.
The Russian businessman Alisher Usmanov increased his shareholding in the club last week via Red and White Holdings Limited to around 21%, which makes the investment company Arsenal's second-largest shareholder behind director Danny Fiszman. Meanwhile, American billionaire Stan Kroenke remains another significant investor, with a stake of just over 12%.
"The best way that Arsenal can continue to deliver success is by maintaining a business that pays its own way," said Arsenal's chairman Peter Hill-Wood. "This philosophy helped establish our objectives for the club's move away from Highbury and Emirates Stadium now provides Arsenal with the increased income, profitability, cash generation and firm financial foundations from which we will continue to build trophy-winning Arsenal teams for many years to come. We have always pursued, and intend to continue with, a policy of re-investing profits and surplus cash into team development."
(Source: Guardian.co.uk)
|
| Back |
|
|
|
|
 |
