Arsenal are on course to set a new Premier League revenue record, blitzing Manchester City’s existing high watermark of £713m. And the Gunners’ success on the pitch has been integral.
Whatever happens in Budapest at the weekend, it has been a historic season for Arsenal.
Mikel Arteta delivered a first Premier League title in a generation and avoided the ignominy of becoming the first team to finish 2nd in four consecutive seasons. His and Andrea Berta’s recruitment and retention strategy has proved spot-on: they went for squad depth over superstars, and they have stayed the course in the league and in Europe as a result.
Equally impressive is the commercial operation behind the scenes which has allowed Arsenal to spend heavily, with a net outlay of nearly £250m this season underpinned by a strong footing under Profit and Sustainability Rules and the cold, hard cash flowing in and out of the business.
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That is a departure from recent years, when Stan Kroenke has had to inject nearly £350m into the club to accommodate the costs of strengthening the squad and increasing the wage bill, which could potentially surpass £400m this season.
Arsenal’s biggest commercial deals – with Adidas, Emirates, Visit Rwanda and Sobha Realty – all likely have bonuses pertaining to on-pitch performance built into their contracts.
“If they win the Champions League, it will be about €150m in prize money, but there will also be bonuses from sponsors,” says University of Liverpool football finance lecturer Kieran Maguire, speaking exclusively to Arsenal Insider.
“I suspect there will be a performance-related to the Emirates and Visit Rwanda deals, as well as similar bonuses from the other premium sponsors.“
Last week, The Times reported that Arsenal were set to hit £770m in revenue for the season. For context, last season they hit £690m, made up primarily from £154m matchday, £278m broadcast and £263 commercial income.
So, what will the breakdown be of that £770m figure when the accounts are released next spring?
“In terms of the wider revenue picture,” says Maguire, “they’ve had seven extra home matches at the Emirates at a yield of probably £6m per match and potentially higher in the later stages of the Champions League too. I haven’t seen any complaints about the prices of tickets among fans, so it looks as though they have got the pricing right.
“That £770m figure looks about right, and it would be a new Premier League record. There will be a significant uplift in commercial income too, which reflects the excellent work that they have done in terms of that department in recent years.”
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