Arsenal Set FFP Standard
Fri 28th Sep 2012 | Money & Finance
Arsenal have posted improved group turnover in the latest set of accounts released yesterday.
The figures, up to the year ending May 2012 showed an increase in group profit before tax of £36.6 million (2011 - £14.8 million) along with an increase in revenues from football to £235.3 million (2011 - £225.4 million) with commercial activities contributing £5.6 million of that growth.
In his statement in the accounts Chief Executive, Ivan Gazidis, said: "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 faced criticism for sticking to our philosophy of living sustainably within our financial means rather than reaching out for a quick fix injection of money to solve all our supposed problems. But how much is enough to outspend others who have seemingly limitless means? We can and will forge our own path to success and avoid the many examples of clubs across Europe struggling for their very survival after chasing the dream and spending beyond their means.
“Football is moving powerfully in our direction. This season is the first in which UEFA's Financial Fair Play ("FFP") regulations come into effect. These regulations have support from all the leading clubs in Europe and UEFA have assured clubs that the rules will be implemented rigorously. I believe there is already evidence of changing behaviour from many clubs and this is good for football.
“In addition there are continuing discussions at the Premier League towards the introduction of similar measures domestically, designed to ensure that all Premier League clubs operate within their means.”
Not all was good with group turnover falling to £243.0 million from £255.7 million the previous year. This reduction was attributed to the expected lower level of property sales activity following a low key year for the property business with an operating profit of £2.2 million as the Highbury Square project draws to a close.
Operating profit in the football business was also down on 2011 to £32.3 million with revenue gains outweighed by increased wage costs.
Commenting on the results for the year, Peter Hill-Wood, non-executive Chairman, 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."
“I am pleased at the progress being made on our commercial agenda. New partners have joined the Arsenal family and I am confident we will see further commercial growth over the next few years. Arsenal has a name and fan-base which extends around the world and which represents an attractive proposition to both our existing and potential new business partners."
Posted by: Aaron Gourley
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