For Arsenal fans like me, news like this actually make us angrier as it becomes more and more difficult to figure out why the club has so much in the bank but yet failed to buy any more than £8million Nacho Monreal. According to the report (see below) Arsenal made pre-tax profits of £17.8million and had over £120million as cash in the bank for the six months ending November 2012. Despite this, Arsene Wenger failed to spend. See extract of the report below;
The figures show a profit before tax of £17.8 million. This was driven primarily by player sales of £42.5 million but the accounts also show an investment of £40.9 million in signing new players – Lukas Podolski, Santi Cazorla andOlivier Giroud – and the extension of contracts for existing players.
The Club has extended contracts for Jack Wilshere, Theo Walcott, Kieran Gibbs, Aaron Ramsey, Alex Oxlade-Chamberlain and Carl Jenkinson. More recently, the Club has signed Nacho Monreal from Malaga.
Football turnover dropped from £113.5 million to £106 million as a result of four fewer home fixtures compared to the same period last year. However, overall operating profits from the Club’s property operation increased to £1.9 million versus £0.5 million in 2011.
The Club has no short-term debt and continues to have a robust financial platform from cash reserves of £123.3 million. These were at £115.2 million in 2011.
The report also confirms the extended partnership with Emirates which will be worth up to £150 million. This comes in addition to deals with Airtel and Malta Guinness and additional sponsorship linked to the pre-season tour.
Mr Hill-Wood added: “The Emirates partnership is one of the biggest sponsorship deals in the game and is an endorsement of the commercial approach we are taking.”
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ARSENAL ANNOUNCE HALF YEAR RESULTS
Group profit before tax was £17.8 million (2011 – £49.5 million).
Profit on sale of player registrations amounted to £42.5 million (2011 – £63.0 million).
£40.9 million of investment in new players and extended contracts pushed amortisation charges up to £19.9 million (2011 – £17.3 million).
The resulting profit from player trading was £23.2 million (2011 – £46.1 million).
Turnover from football fell to £106.1 million (2011 – £113.5 million) as a consequence of there being four fewer home fixtures.
As a result of this change in football turnover and increased wage costs, operating profits (before depreciation and player trading) from football decreased to £5.0 million (2011 – £15.2 million).
Property revenues were boosted to £32.3 million (2011 – £3.2 million) by the sale of the market housing site at Queensland Road. However, the Queensland Road sale was essentially at break even in profit and loss terms. Overall operating profits from property increased to £1.9 million (2011 – £0.5 million).
The Group has no short-term debt and continues to have a robust financial platform from cash reserves of £123.3 million (2011 – £115.2 million).
Confirmed extension to Emirates partnership worth up to £150 million.
