Arsenal CEO Defends Clubs Turnover Slump in Latest Financial Report

Arsenal’s latest financial reports have reveled a significant fall in turnover but the Premier League Club’s chief Executive Ivan Gazidis is not perturbed by the situation.

Arsenal reported turnover of £255.7 million ($396.4m) for the financial year ending May 31, down from £379.9 million ($589.3m) in 2010, while profit slumped from £56 million ($86.9m) to £14.8 million ($22.9m). Reduced income from property sales at the Highbury redevelopment on the site of Arsenal’s old stadium and an increase in player wages contributed to the results. Property sales dropped to £30.3 million ($47m) from £157 million ($243.6m) the previous year, while staff wages increased year-on-year by 12% to £124.4 million ($193m).

However, Arsenal’s debt was reduced by 28% to £97.8 million ($151.8m) and the financial results did not include the transfer fees received for Cesc Fabregas, Samir Nasri and Gael Clichy. Fabregas joined FC Barcelona for £30 million ($46.5m) while Nasri and Clichy joined Manchester City for fees of £24 million ($37.2m) and £7 million ($10.8m), respectively.

Gazidis said in a statement: “We are very secure – it’s a good set of results again. This is a very solid, very healthy set of results and it gives us a good platform to move forward from. We didn’t have the same kind of profit from player sales that we had in the previous season and that explains the slight reduction in profit.

“We haven’t seen the same kind of profits from the property side that we have seen in the past but that was entirely to be expected. Our property business is debt-free so any new sales of property do accumulate cash, which is very positive for the future.”