Arsenal's Financial Crisis

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Re: Arsenal's Financial Crisis

Postby CrimsonGunner11 » Wed Mar 06, 2019 4:32 pm

Dejan wrote:Cliffs?

Im at work

Verstuurd vanaf mijn SM-G920F met Tapatalk


The following is for the year 2018:

*Match day income fell from previous year because no CL but we are still among the best (bettered by only one club) in this area

*Liverpool and Sp*rs projected to catch up in this area if we don’t improve or become complacent

*Broadcast income fell from previous year which can mainly be attributed to how the EL distributes the competition money

*Only the teams who had CL football and Leicester’s figures from 2017 bettered us in this area (so 5 teams from the PL received more than us)

*Commercial income also fell from previous year and its assumed that penalty clauses for failing to qualify for the CL is the reason

*We are only generating half that of the Manchester clubs in this area and it affects how we compete for players in the market

*Player wages and transfers is a big expense for the club and it rose by 20% from previous year thanks to new additions and a 17 million payoff to Wenger and his team

*Many Analysts prefer to use EBIT to determine a clubs financial health due to erratic nature of certain expenses. Despite the 79 million profit from previous year, 18 million loss is actually a better indicator of the clubs health. Low income and high costs can be blamed for this

*Proposed solution 1: generate income from additional sources. player sales, for example. We made a record profit from player sales in 2017/2018 which helped offset losses

*Proposed solution 2: Since getting high wages off the books may be hard and fans won’t like an increase in ticket prices, it’s up to the commercial department to make the club more attractive. CL football helps with this

TL;DR: We have three main sources of income: matchday, broadcast, and commercial and all fell from previous year. Add to this the increase in expenses from adding new players, higher wages, and a payoff to Wenger mean a loss of 18 million is a better indicator of our financial health than the 79 million profit most sees. Getting CL football is the proposed best solution for improving current financial health as commercial income is seen as the easiest to control atm


My 2 cents: I hope we have someone at the club better than Sven because I’m still unsure of Emery’s coaching ability.
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Re: Arsenal's Financial Crisis

Postby weaponx57 » Wed Mar 06, 2019 10:38 pm

All this and yet Mr. American Trash Stan Kroenke spent billions of his own money on his NFL franchise....he will never do the same for Arsenal.
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Re: Arsenal's Financial Crisis

Postby Sims » Wed Mar 06, 2019 11:34 pm

our adidas deal starting from next season is worth £60-65m p/a
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Re: Arsenal's Financial Crisis

Postby PairyGrows » Thu Apr 04, 2019 2:18 pm

Sims wrote:our adidas deal starting from next season is worth £60-65m p/a


That amounts to £30-35m added revenue. This means the Adidas deal alone isn't going to bring in sufficient funds for transfers. From a financial standpoint, qualifying for the Champions League is going to be absolutely crucial going forward.
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Re: Arsenal's Financial Crisis

Postby PairyGrows » Wed May 29, 2019 9:10 pm

Time to dust off this thread after the Europa League final. The resounding defeat at the hands of Chelsea has confined us to another season in the Europa League, which means Arsenal are set to turn in a loss for the second season in a row. Needless to say, this has enormous repercussions going forward.

There have been rumours about Arsenal having a 'war chest' of £45m. It's fairly obvious that the measly figure should be doubled or even tripled if we wish to get back to winning ways. However, we have no potential avenues to expand our revenues due to missing out on the Champions League again. We can't cut costs significantly either.

The only way out is selling assets such as Aubameyang and Lacazette. That's the only way we can turn in a profit next season. Then we'll have to replace them with cheap and hope we can do the business next season.

I hope you don't blame me for lacking optimism.
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Re: Arsenal's Financial Crisis

Postby Angelito » Wed May 29, 2019 9:31 pm

Now that we have a budget of £40-45m.. I don't know.

City, Liverpool, Spurs, and Chelsea look set for top-4. ManU will spend big this summer. We're in the risk of becoming the Everton of the top-6.
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Re: Arsenal's Financial Crisis

Postby LMAO » Wed May 29, 2019 9:51 pm

Angelito wrote:Now that we have a budget of £40-45m.. I don't know.

City, Liverpool, Spurs, and Chelsea look set for top-4. ManU will spend big this summer. We're in the risk of becoming the Everton of the top-6.


Hazard is gone, and Chelsea won't finish top 4̶ 6 next season without him.

It's between us, United, and maybe Everton for 4th. Don't think Wolves will have the squad to compete in the league and Europe.

£40 million could get us four £30-35 million rated players, though. Not enough, but the first step of a new foundation.
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Re: Arsenal's Financial Crisis

Postby Tony_Adams » Wed May 29, 2019 9:59 pm

Surely we can still afford more than 40m?!
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Re: Arsenal's Financial Crisis

Postby PairyGrows » Thu May 30, 2019 5:47 am

Tony_Adams wrote:Surely we can still afford more than 40m?!


Not really. We can only spend what we make, and right now we're spending more than we're making. We're paying Champions League wages while making Europa League money. That's not sustainable, which means there won't be more than £45m to spend in the summer.

Losing the Europa League final feels terminal because, well, it is. Our business model depends on Champions League football. Without it, we're looking at selling assets.
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Re: Arsenal's Financial Crisis

Postby Tony_Adams » Thu May 30, 2019 6:26 am

PairyGrows wrote:
Tony_Adams wrote:Surely we can still afford more than 40m?!


Not really. We can only spend what we make, and right now we're spending more than we're making. We're paying Champions League wages while making Europa League money. That's not sustainable, which means there won't be more than £45m to spend in the summer.

Losing the Europa League final feels terminal because, well, it is. Our business model depends on Champions League football. Without it, we're looking at selling assets.
So how come clubs like everton and west ham can?
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Re: Arsenal's Financial Crisis

Postby EliteKiller » Thu May 30, 2019 6:36 am

Let's not go over again how much cash we have or haven't got ... the fact is if we want new signings that means selling to buy, however before we even get to additions what about the players we will lose for nothing?

Ramsey - Gone so realistically if we can replace him that's any budget spent right there ... played 28 times 1,331 minutes this season

Cech 37 - Gone played 7 games 588 minutes
Lichsteiner 35 - Gone played 14 games 941 minutes
Koscielny 33 - Gone (well a year left on his contract but he's done) played 17 games 1,330 minutes
Monreal 33 - Gone played 22 games 1,861 minutes

So that's four players the wrong side of 33 all who almost certainly won't be playing for us next season, yet who between them played in 60 games this season .... all these will need replacing either from within the squad, or with new signings.

When that's done there simply isn't any cash left - so it's sell to buy - so who can we sell?

Auba 70m
Laca 60m
Torreira 50m
Zhaka 45m

After that we would struggle to get >35m for any player, and if you did then his replacement would cost us more anyway ...

As much as we wish to rebuild the chances are The Don will do well to keep what he has, spending what little cash he has to replace the geriatrics ... without serious money it's not looking good for this summer

Next season the youngsters will get an opportunity and that's good ... let's hope at least a couple really step up ... for sure we will need them
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Re: Arsenal's Financial Crisis

Postby Nuggets » Thu May 30, 2019 7:43 am

Angelito wrote:Now that we have a budget of £40-45m.. I don't know.

City, Liverpool, Spurs, and Chelsea look set for top-4. ManU will spend big this summer. We're in the risk of becoming the Everton of the top-6.


We are with that muppet Kroenke holding the purse strings.
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Re: Arsenal's Financial Crisis

Postby PairyGrows » Thu May 30, 2019 7:51 am

Tony_Adams wrote:
PairyGrows wrote:
Tony_Adams wrote:Surely we can still afford more than 40m?!


Not really. We can only spend what we make, and right now we're spending more than we're making. We're paying Champions League wages while making Europa League money. That's not sustainable, which means there won't be more than £45m to spend in the summer.

Losing the Europa League final feels terminal because, well, it is. Our business model depends on Champions League football. Without it, we're looking at selling assets.
So how come clubs like everton and west ham can?


Because their owners are ready to inject cash into their clubs. Our owner isn't.
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Re: Arsenal's Financial Crisis

Postby Dejan » Thu May 30, 2019 1:21 pm

we are f***ked
Rest in Peace SE13 :(
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Re: Arsenal's Financial Crisis

Postby gooney » Thu May 30, 2019 1:33 pm

It seems us and burnley has the smallest transfer kitty this summer
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