Arsenal reveal a £27.1m LOSS in their accounts
Arsenal reveal a £27.1m LOSS in their accounts (and that’s without the £72m spent on Nicolas Pepe)… as they now face losing millions AND having to refund their fans over early Europa League exit
- Arsenal have registered a £27million loss for the financial year up to May 2019
- The previous year, the Gunners revealed a healthy £56.5million profit
- The report does not include the £141million spent on transfers in the summer
- Unai Emery splashed out a club record £72million on Nicolas Pepe
- The club’s chairman said missing out on Champions League is damaging them
- Arsenal will also have to pay out to season ticket-holders for their European exit
Arsenal have revealed a staggering £27million loss in their accounts as the club’s chairman admitted the lack of Champions League revenue is damaging the club’s finances.
The accounts cover the year up to May 2019 and show a massive hit to the Gunners’ coffers after registering a £56.5million post-tax profit the year before.
To add insult to injury, the club’s embarrassing Europa League elimination on Thursday to Olympiacos will further hamper their finances going forward.
Arsenal have registered a £27million loss, a year after revealing a £56.5million profit
The defeat means they will not only lose money from potential tournament winnings and TV revenue, but they will also have to pay out to their season ticket holders.
If Arsenal do not play the required number of seven cup fixtures at the Emirates, fans receive a rebate which will cost the club millions.
So far they have played five at home, and can only play a maximum of six.
They will travel to Portsmouth in the FA Cup, but replays have been scrapped from the fifth round meaning they won’t be able to stage another tie at home.
Even if Arsenal progress to the Quarter Finals and have a home tie, that will be a maximum of six cup games at the Emirates before the semi-finals take place at Wembley.
With Arsenal sitting in ninth place behind a crowded field, Europa League qualification appears likely to evade them this season, further worsening their situation.
The report does not include the hefty spending in the summer after Unai Emery broke the club’s transfer record to bring in Nicolas Pepe for £72million.
A further £70million was spent on the acquisitions of Kieran Tierney, William Saliba, David Luiz and Gabriel Martinelli.
Unai Emery splashed out £72million on Nicolas Pepe, which is not included in this year’s report
Arsenal also raised £48million in the window, largely through the sale of Alex Iwobi, but the big signings could have ramifications for next year’s accounts, particularly with the likely loss of European football.
Commenting on the news the club’s chairman, Sir Chips Keswick, said: ‘Our player trading profit for this financial year was limited and this combined with a second consecutive season of Europa League football has meant the club recorded its first overall loss since 2002.
‘For 2019/20 we will see increased commercial revenues from Adidas and our renewed deal with Emirates but another season outside the Champions League will continue to apply pressure to our financial results.’
The report shows one of the biggest changes between 2018 and 2019 in the club’s accounts has been the sale of players.
In 2018, Arsenal made £122million from the sale and loaning of players, while the most recent year, they made only £16.8million.
The Europa League loss means the club will have to pay out to their season ticket holders
Big-name departures such as Alex Oxlade-Chamberlain, Alexis Sanchez, Olivier Giroud and Theo Walcott would have eased the club’s wage bill and boosted their finances during the 2017-18 season.
But the following year, they sold few players and spent upwards of £70million on Lucas Torreira, Bernd Leno, Matteo Guendouzi and Sokratis.
A statement on the club’s website reads: ‘Player trading profits have a significant impact on overall profitability particularly where other operating profits are adversely impacted by participation in the UEFA Europa League as opposed to the more lucrative UEFA Champions League.’
Arsenal’s revenue was boosted by around £40million for reaching the Europa League final last season and their new kit deal with Adidas is worth £60million a year.
The news comes shortly after Manchester United announced a similarly damaging report with the lack of Champions League football also affecting Old Trafford.
The Reds made a pre-tax profit of £42million last year despite a record £223m investment on players.
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