Skip to main content

Haringey overtakes Islington in North London revenue race

Undertaking his usual forensic analysis of the latest Arsenal accounts, the authoritative Swiss Ramble identifies a number of areas of concern from his Zurich fastness.   They are not just pandemic effects, which can be seen across Europe, even though Arsenal has been hit harder in some respects.

The operating loss increased from £33m to £99m. Very few clubs make operating profits, but Arsenal now have the third highest loss in the Premier League, only surpassed by Everton £175m and Chelsea £112m. This is concerning if they cannot compensate with player sales (as Chelsea do).

The £79m revenue fall in the last three years is the worst of the Big Six with only Manchester United also experiencing a decrease in that period. Despite the impact of the pandemic, all the others have significantly grown their revenue, most notably Liverpool £126m and Tottenham Hotspur £86m

Commercial is the most important revenue stream at 41%, having overtaken broadcasting 35%, followed by match day 23% and player loans 1%.

Commercial income is still sixth highest in England, around half of Manchester United £279m. Also a long way behind Manchester City £250m and Liverpool £214m, though within striking distance of Chelsea £170m and Spurs £162m.

As matches continue to be played without fans, Arsenal are operating without one of their key revenue streams. To illustrate the importance of match day revenue, it accounted for 23% of the club’s revenue in 2019/20, the second highest in the Money League.

The £343m revenue remains 6th highest in the Premier League. They are comfortably ahead of 7th placed Everton £186m, but the gaps to the top five are equally large, e.g. around £150m below the top three clubs (United  £509m, Liverpool £490m and Manchester City £482m).

Their ranking in the Deloitte Money League fell from 5th in 2011 to 11th in 2020, while their revenue was £95m higher than 10th placed club in 2016.

They have earned €214m from Europe in the last five years, the lowest of the Big Six and far below the likes of Manchester City €390m, Liverpool €310m and Spurs  €299m. There has been a clear drop-off in the last three years when Arsenal have failed to qualify for the Champions League.

It will not have escaped Arsenal fans’ attention that their North London rivals revenue has overtaken them in the last two years. Not only is the gap now £51m, but Spurs are ahead in all three revenue streams: match day £16m, broadcasting £17m and commercial £18m.

[WG: Understandably, Arsenal fans are concerned about what is happening on and off the pitch.  The finger points at one person: franchise owner ‘Silent’ Stan Kroenke].

Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s
1 comment
Read more

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day income is
Post a Comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to depl
Post a Comment
Read more