Arsenal Reveal Pre-Tax Profit, Gazidis Looking to Forge Own Path to Success
By Community | September 27, 2012
Arsenal have announced another healthy pre-tax profit and CEO Ivan Gazidis believes this will help sustain the club through the Financial Fair Play Scheme.
Arsenal’s operating profits fell to £32.3m in the year to the end of May from £45.8m last time as revenue gains were outweighed by wage costs.
The operating profit is before exceptional costs, depreciation and player trading.
Arsenal reports a profit from player trading of £26.0m against a loss of £14.6m last time with gains from a number of significant player sales, including Cesc Fabregas and Samir Nasri, partially offset by higher amortisation charges.
Group turnover was £243.0m (2011: £255.7m). The fall was due to the expected lower level of property sales activity.
Revenues from football increased to £235.3m (2011: £225.4m) with commercial activities contributing £5.6 million of this growth.
Non-executive chairman Peter Hill-Wood said: “We have invested in the team and in the club’s infrastructure as a whole and this will continue.
“UEFA’s new financial regulations have added a further emphasis to the need for a sound financial model.
“That is why our activities to increase revenue are important.
“Increased revenues allow us to continue to be competitive and to keep pace with the ever present cost pressures in the game.”
Gazidis believes Arsenal are in a good position to fulfil UEFA’s Financial Fair Play guidelines for clubs to live within their means.
He said in a statement: “Clubs, fans and other stakeholders in the game are demanding a more rational financial approach and this reinforces our conviction that our club is strongly placed to succeed over the long term.
“We have qualified for the Champions League for the 15th season in a row whilst off the pitch we have a business strategy and infrastructure that is helping us to grow our revenues.
“This revenue growth will provide sustainable funds for future investment in the team whilst keeping within the UEFA Financial Fair Play requirements. We can and will forge our own path to success.”