Arsenal chief Edu Gaspar took a £10.4m gamble and that has now resulted in £30m ‘pure profit’

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Arsenal fans need to start praising Edu Gaspar more.

The Gunners sporting director often comes under fire if a rumour doesn’t materialise into a transfer. He has to go through that in every single window.

However, Edu still does the best he can, and although we’re sure some people will point at a few instances when things haven’t gone to plan, everyone has to agree that his time at the Emirates has been a big success so far.

There are many examples we can put in front of you to back the above claim. Edu’s management of Eddie Nketiah over the last two years is definitely one of them.

Arsenal’s Eddie Nketiah gamble pays off as Edu Gaspar makes big profit

Nketiah was on the verge of leaving Arsenal on a free transfer in June 2022, and there were a few people who felt that the Gunners should let him go.

However, Mikel Arteta and Edu worked really hard and tied Nketiah down to a new Arsenal contract which saw him earn £100,000-a-week in wages.

That led to some criticism because a few supporters felt that keeping Nketiah on a significant contract made no sense – they all wanted Edu to sign a world-class striker for big money instead.

Arsenal ignored those calls, and they were right to do so.

From the time he signed a new contract until he left the club, the Gunners paid Nketiah around £10.4 million in wages, which may seem like a lot.

However, Arsenal have sold Nketiah to Crystal Palace in a £30 million deal (£25m +£5m in add-ons) this summer, which is almost triple the money they invested in him.

That gives the North Londoners a big profit and helps them out massively with PSR.

Finance expert reveals what Eddie Nketiah’s £30m deal means for Arsenal

Edu’s gamble in 2022 has well and truly paid off now, and TBR Football’s Head of Football Content, Business, Finance & Governance Adam Williams is not at all surprised.

The finance expert has given Arsenal Insider an exclusive insight into what Nketiah’s £30 million fee means for the Gunners.

He said: “I think for a player who has an obvious resale value, the new contract Arsenal gave Nketiah in 2022 was a no-brainer. You’re protecting his value. And when it’s a player who’s come through the academy, his sale is ‘pure profit’.

“Basically, because PSR profit or loss is calculated with reference to the amortised book value of a player – his original fee divided by the time remaining on his contract – academy sales give you more PSR headroom as the club didn’t pay anything for the player in the first place.

“Pure profit isn’t necessarily an issue for Arsenal at present given that they don’t have any PSR problems, despite what they appear to have been briefing to some journalists throughout the summer. But it’s good practice to make sure the deal makes sense both from a cash point of view and also in terms of PSR. Things can change relatively quickly after all.

“I’m surprised there was any pushback against Nketiah’s deal. It’s a relatively low-risk manoeuvre and one which shows the value of having an elite academy.

“I believe Arsenal spend around £15m per year on their academy. With one deal like this, you’re paying for those costs instantly for two years. And those costs are PSR-deductible in the first place.

“It’s a lamentable by-product of PSR that it incentivises you to sell academy-produced players. But that is the reality in which clubs like Arsenal are operating.”

Arsenal can repeat Nketiah trick in 2025

The last thing anyone should encourage any club to do is sell their academy players, but PSR rules incentivise clubs to do that, which is a shame.

We’re sure Arsenal will not do what Chelsea have been doing, but there is one academy graduate who is likely to be made available for sale in 2025 – Reiss Nelson.

Like Nketiah, Arsenal tied down Nelson to a good contract in the summer of 2023, when he was on the verge of leaving on a free transfer.

The Gunners have invested millions in his wages, but if he has a decent season on loan at Fulham and is sold next summer, we’re sure Arsenal will make a tidy profit on him.

That would be another feather in Edu’s cap.