Although this topic is heavily discussed across various threads on the forums, I think it deserves a thread of its own due to its implications for the long-term future of the club. I’ve done some digging into Arsenal’s finances, and my findings have horrified me to the core: Arsenal are in a financial crisis, which puts our long-term future is in jeopardy.
First, I looked at the latest financial figures released by the club (for six months ending in November 30th, 2017). The figures painted a worrying picture: our football revenue dropped by 12.2 percent (£23.4m), which saw our operating profit drop by a whopping 71.2 percent (£38.6m). Our profit before tax doubled from £12.6m to £25.1m, which was largely due to the net profit of £15.5m on player trading as opposed to the loss of £27.6m. In other words, we had to sell players to get in the black.
The financial figures for 2017-18 haven’t been released because Kroenke’s full takeover of the club has removed the obligation to do so (quelle surprise!). However, Arsenal Supporters’ Trust put out estimates which not only corroborate the story told by the interim report but are even worse. AST estimated that we lost 9.5 percent of our football revenue last season, which led to an operating loss of £44m. We turned in a profit before tax of £69m largely due to net income from player trading of £124m. Chillingly, AST estimated that Arsenal would turn in an operating loss of around £60m and a loss before tax of nearly £70m in 2018-19. They also estimated the club would have around £40m to spend on transfers in summer 2019.
These figures are indeed hair-raising, and the message they send is clear: Arsenal are no longer self-sufficient. Our business model has broken down, which is due to both negligent ownership and poor management over the last few years. Unless we get back into the Champions League this season (which looks unlikely), the consequences will be catastrophic. Unless the new regime (Emery, Mislintat, Sanllehi, Venkatesham) can work wonders on a shoestring budget, I can see us slipping into mid-table mediocrity permanently very soon. That’s a grim vision for the future of Arsenal.
The question is: how can we turn this around? If anyone has any ideas, please tell me. I’m clutching at straws for any positives.