Arsenal have a different idea for how they will pay for Martin Zubimendi’s transfer to the club, rather than paying for his release clause, thanks to a plan from Stan Kroenke and the board.
The Gunners are set for a summer of heavy investment, with a few high-profile signings needed to make sure they can compete at the top of the Premier League and in the latter stages of the Champions League next season.
Forwards are certainly on the mind of Arsenal fans, following a campaign that involved plenty of struggle in front of goal.
However, it’s the midfield that the North London club are set to strengthen in first, following a long transfer saga.
Arsenal are set to sign Martin Zubimendi in a deal worth upwards of £51 million from Real Sociedad.
As it stands, Arsenal won’t trigger Zubimendi’s release clause, though, as a different payment plan is in mind for Stan Kroenke.
Stan Kroenke’s £324m Arsenal payment plan explains Martin Zubimendi situation
Arsenal are set to pay more than the £51 million release clause in Zubimendi’s deal to secure the player this summer.
While many may be confused as to why a club would do that, the answer is to do with how payment is structured in a deal.
A release clause has to be paid up front, while instalments can occur over other deals once agreed with the selling club.
For Arsenal to afford Zubimendi, as well as the other deals they have planned, they simply must agree a payment structure.
Speaking to finance expert Adam Williams on the situation, he told Arsenal Insider: “If you look at Arsenal’s transfer debt – how much they owe on instalments for players they have already signed – it was £268 million at the last count.
“A fair whack of that will be due this year, so it’s a big cash flow expense. This is the thing with paying for players this way. Once you are in that cycle, it’s hard to get out of it because you are committed to paying these instalments which reduce your cash reserves, which in turn means it’s hard to buy players outright in one go again.
“That said, it’s a perfectly legitimate way of structuring a deal. Arsenal only spent modestly last season and their cash reserves will be high thanks to UEFA and Premier League payouts, which hit the bank balance this time of year. You’re also getting a tranche of payments from sponsors around the same time too.
“So I don’t think the Zubimendi deal is a case of them not having sufficient cash to pay it in one lump. I’d suggest that it’s more likely that they are keeping their powder dry for more signings this summer, most of which will presumably also be done on instalments.”
As for what that means for Arsenal owner Stan Kroenke, he added: “I think that means we’re unlikely to see Stan Kroenke put more money into the club himself – that is pretty telling.
- READ MORE: Inside the life of Arsenal owner Stan Kroenke from net worth and sports teams to businesses
“He has loaned the club £324 million, which he probably won’t ever get back. Under his model, he needs the club to be self-sufficient and paying for transfers on tick means that he doesn’t have to put funds in.
“The aim will be to increase the transfer debt but cover that with increasing revenues from elsewhere in the business.”
That increased revenue will likely come with success, showing that Arsenal need to keep on improving in the months and years ahead.
Success on the pitch equals success off it, which is where the Gunners are heading towards.
Summer transfer window will prove costly for Arsenal
If there’s one thing that can be said of this summer transfer window, it’s that it will cost a lot of money for Arsenal.
The types of players they want to sign in the positions they are targeting do not come cheap and will lead to a huge transfer spend.
Zubimendi’s deal worth over £50 million is just the start as Arsenal continue talks with RB Leipzig over Benjamin Sesko, who is rated at £70 million.
Then there are forward options, such as Nico Williams, Rodrygo and Rafael Leao, who will cost a pretty penny.
There will be a lot of money spent, but after a year of little spend and some big sales, it could be time to splash the cash.
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