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The cost of failure for Arsenal

Arsenal's poor form this season could cost them up to £40m in lost revenues if they fail to qualify for the Europa League. The club admitted in their accounts last year that playing in the Europa League rather than the Champions League in 2017/18 had cost them about £35m in football revenue.

In the latest accounts the club state that they earned £36.6m in broadcasting revenue from the Europa League last season. There could also be reduced commercial income, including from sponsors, and a potential issue with season tickets as Arsenal include seven cup matches in the price.

However, there would be lower bonuses and travel costs without European football.

There are some puzzles in the latest accounts, partly arising from the fact that they are for Arsenal Football Club, whereas Arsenal Holdings has around 20 subsidiaries, one of which appears to be holding cash earned by the football club.

Forbes comments, 'There is no reference in Arsenal Football Club’s financial statements to any contribution from the development in and around the old Highbury stadium. Property development generated £15m in 2017/18 with costs of around £10m. Net Finance charges appearing in the Arsenal Holdings statements for 17/18 amounted £8.7M versus just £229,000 shown in Arsenal Football Club.'

Read the Forbes analysis in full here: Match day revenue seemingly evaporated

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