The Board has just announced figures which the Arsenal Supporters trust describe as Impressive, turnover is up making us the third richest club in the world (not counting Manchester City), the richest club in London, and the profits are up. Ok, the wage bill has gone up but we can all pat ourselves on the back handsomely as Stan Kroenke joins the board. Soon the new CEO’s identity will be known and we stand top of the Premier league Every thing is wonderful surely?
The Arsenal Supporters trust said:
“The AST congratulates the club on another impressive set of financial results
which demonstrate the earning power of the new Emirates stadium.
“Other football clubs are currently suffering as a consequence of the crisis in the global financial markets. This scenario does not affect Arsenal to the same degree. As every day goes by the debt refinancing Arsenal took on two years ago is demonstrated to be a fantastic bit of business.
“The increase in the wage bill to £100 million proves that Arsenal are prepared to compete for and reward the best players. We estimate this is the third highest wage bill in English football.”
So I am asking myself: Why am I always out of step with everyone?
The view expressed by the Trust is in my view looking at the club through rose tinted glasses, and it would appear to be the same among all the Arsenal blogs out there, I appear to be in the in the minority in looking at the accounts and expressing a little concern, not anxiety you understand, just a degree of concern. Make no mistake, these results are good, but not THAT good.
When running a small business, there are certain things that remain the same when translated into the megamillion pound outfits like running a football club. That is, the staff are likely to be the largest cost item, and other costs must be kept below the rate of inflation to enable the profitable revenues to be realised and re-invested in which ever way thought suitable. Loans by and large should be kept to a minimum, and clear explanations given as to why they were needed. There are also revenue streams which are variable, and the TV/Broadcast stream is one such item that is currently providing a large percentage of our profitablity. I just don’t like the shifting sands of the media in this economic climate.
So obviously my quick reading of the financial results requires more detailed scrutiny, then I will provide you all my considered view as a fan of this club on the results here, as soon as I am satisfied about my conclusions. I just hope that my bedtime reading improves, because from what I have digested so far I don’t think that you are going to like it…
Fabregas the King.