Arsenal Perfect Example to Follow for FFP says Gazidis
By Community | October 11, 2012
Arsenal chief executive Ivan Gazidis believes the Premier League club are the perfect example to follow as Premier League clubs prepare for financial regulation.
Financial Fair Play (FFP) rules come into affect from next season which makes clubs balance their books in order to bring their annual deficits down by 2018.
With the Gunners having recently posted a healthy pre-tax profit, Gazidis believes they provide the perfect model which could be adopted by more clubs as they look to become self-sustaining.
He said: “Arsenal were operating this way a long time before football looked at it and decided it would be a good path for football to move into.
“I think people believe money can be spent without consequence and if we learnt anything from the financial crisis the world has had over the last few years it has to be unsustainable spending and unsustainable environments don’t last forever.
“I think football is in a fantastic position to address this because we are in a position where I am very optimistic for the future of football. The revenues the game generates, particularly the Premier League’s position, is fantastic.
“This is a very successful UK industry and it deserves a lot of credit for that. This is a great time for us, when things are going well, to address issues of unsustainability while we can because as we’ve learned addressing them from a position of weakness is never a satisfactory way to do it.
“The Premier League owners are coming together: I think there is a developing consensus around the fact we need some form of tighter financial regulations to make sure as we look forward that the interest of the Premier League, its clubs and the fans are well protected.
“(And) we are running our league on a sound financial business model and taking advantage of what this league has to become the world’s leading sports league.”
Steven Falk, the former Marketing Director of Manchester United, told iSportconnect: “Arsenal’s financial model has much to commend it in terms of prudence and sustainability. However, no two clubs are structured in exactly the same way with ownership and commercial operating models varying widely. Indeed, few are blessed with Arsenal’s assets and resources (not least a state of the art 60,000 seater stadium and a premium seat pricing strategy). Consequently, every club must devise and operate a financial strategy that best suits its own operating needs and circumstances.”
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