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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].

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