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Arsenal’s Wage Bill Skyrocketing

We are thankful to David from We Are Arsenal Blog for sharing this article with us and allowing us to post it on the site.

Arsenal released their financial results for the year ending May 31, 2012 on Sept 27th. You can read them here . Despite what Ivan Gazidis said , there are some worrying trends in these numbers.

Top Line Numbers

In put Arsenal’s turnover into perspective, in 2009 it was 209 and in 2010 it was 223m. That is an anemic growth in turnover.

Turnover Breakdown

  •     Match Day Revenue: Increased slightly to £95.2 million from £93.1 million mainly due to the fact that Arsenal had one extra home game last season.
  •     Broadcasting Revenue: Basically unchanged at £84.7 million from £85.2 million)
  •     Commercial Revenue: Increased to £52.5 million from £46.3 million. Still incredibly low numbers when compared to other big European clubs. Manchester United‘s commercial revenue is about double that of Arsenal’s.

The lack of growth in Arsenal’s commercial turnover is really frustrating to me. Yes I know that the stadium and kit deals are not up until 2014, but look at the growth in commercial revenue the last four years:

  •     2009: £48m
  •     2010: £44m
  •     2011: £46.3m
  •     2012: £52.5m

To put that in perspective, Manchester United’s announced earlier this month that their commercial revenue for last season was £117.6m

This is the worrying part to me as Arsenal had a massive jump in its wage bill from £124.4 million in 2011 to £143.4 million in 2012. Arsenal’s wage bill now represented 60.9% of the football revenues, up from 55.2% in 2011.

To put this in context, here is Arsenal’s wage bill over the last four years:

  •     2009: £104m (46% of turnover)
  •     2010: £111m (50% of turnover)
  •     2011: £124.4m (55.2% of turnover)
  •     2012: £143.4m (60.9% of turnover)

That is a massive increase in Arsenal’s wage and that kind of growth in expenses is not sustainable.

Bottom Line
Arsenal is a club with little growth in turnover and an out of control wage bill. That is not sustainable. Unless they are planning on net transfer dealing of £25-30m each year, Arsenal needs to increase its turnover, specifically its commercial revenue quickly while reigning in its wage bill (sorry Theo).

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The original article can be found at the below link :-




About AIS Admin

There are somethings in life that are and should be fueled only by passion. And being a Gooner is one of those. These are our contributions to our fellow Gooners from India. Proud to be an Arsenal fan. Gooner for Life!

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