Arsenal Show Strong Commercial Growth
Mon 2nd Mar 2015 | Money & Finance
Arsenal’s kit deal with Puma has helped the club post an increase in turnover from football of £12.6m.
The Premier League club’s turnover from football activities rose to £148.5 million (2013 - £135.9 million). However, significant investment in the squad with a record level of expenditure on player acquisitions (£93.7 million) has resulted in a higher amortisation and higher wage costs whilst profit on the sale of player registrations amounted to £26.7 million which was significantly higher than the prior period (2013 - £6.1 million).
Commenting on the results for the six months, the club’s chairman, Sir Chips Keswick, said: “Our commitment to investment in the squad was evidenced by a record level of expenditure on players joining the club.
“Crucially, this investment remains at a level which is consistent with our principle of affordability and which is financially sustainable in accordance with the applicable regulatory regimes.”
With minimal activity in the property side of the group the club made a total operating profit of £22.0 million, down on 2013 (£22.9 million)
Overall profit before tax was £11.1 million (2013 – loss of £2.2 million).
The club has no short-term debt and its cash reserves, excluding the balances designated as debt service reserves, amounted £138.8 million (2013 - £120.6 million).
Broadcasting was the club’s largest source of income at £53.0 million (2013 - £52.0 million) and combined Commercial and Retail revenues rose sharply to £52.3 million (2013 - £38.4 million).
Arsenal expect to meet all of the requirements of both the Premier League and UEFA’s financial regulatory regimes.
Image: Reuters / Stefan Wermuth Livepic
Posted by: Aaron Gourley
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