Commercial Activity Boost Arsenalís Turnover
Tue 24th Sep 2013 | Money & Finance
Strong growth and increased turnover driven primarily by commercial activity has helped Arsenal achieve a group profit before tax of £6.7m.
The figure is down on the 2012 figure of £36.6m, but turnover from football increased to £242.8m (2012 - £235.3m) driven mainly by commercial activity including the club’s extended partnership with Emirates.
Commenting on the results for the year Arsenal’s chairman, Sir Chips Keswick, said: “It is my job to ensure we steer further along the course we have set.
"We must continue to grow commercially to provide the club with the best opportunity to achieve success and we must do this in a way which remains true to our values and which ensures and protects the long-term sustainability of the club.”
Arsenal’s strong financial performance means the club has no short-term debt and continues to have a robust financial platform from cash reserves, excluding the balances designated as debt service reserves, of £119.7m (2012 - £120.1m).
Sir Chips Keswick, added, "We face a competitive landscape across the top of the Premier League and across Europe’s elite clubs which is tougher than ever. Despite fair play initiatives the financial competition for top players remains intense and transfer prices and player wages continue to move ever higher.
"It is therefore positive that the strong financial platform we have created in recent years allows us to continue to be competitive at the highest level.”
Other key points from the report include:
- Profit on sale of player registrations amounted to £47.0 million (2012 - £65.5 million)
- One-off charges related to the impairment of certain player registrations and associated costs amounted to £10.0 million (2012 - £5.5 million)
- £58.7 million of investment in new players and extended contracts pushed amortisation charges up to £41.3 million (2012 - £36.8 million)
- Taking account of increased costs, principally wage costs, operating profits (before depreciation and player trading) from football decreased to £25.2 million (2012 - £32.3 million)
- Property revenue rose to £37.5 million (2012 - £7.7 million) inclusive of 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 £4.4 million (2012 - £2.2 million)
Posted by: Aaron Gourley
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