Gunners release latest financial results.
Arsenal have announced their latest financial results for the year ending May 2014 and have made a pre-tax profit of just £4.7m, a report on their official website claims.
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Figures for the six-month period ending 31 May revealed a pre-tax profit of £4.7m – down £2m from the corresponding period last year – and an increase in turnover from £280.4m to £301.9m.
However, there is good news in there as the club also confirmed that they are sitting on cash reserves of £170m – though that does not include their transfer activity from the summer.
The Gunners spent handsomely during the transfer market, bringing in the likes of Danny Welbeck, Mathieu Debuchy, Calum Chambers, David Ospina and Alexis Sanchez, driving their net spend to around £60m.
The club also confirmed another rise in their wage bill from £154.5m to £166.4m, offset in part by the beginning of a new five-year kit deal with Puma worth up to £150m which began this season.
A point by point rundown of their figures can be seen below.
– Group profit before tax was GBP4.7 million (2013 – GBP6.7 million).
– The group’s total turnover amounted to GBP301.9 million (2013 – GBP280.4 million).
– Turnover from football increased to GBP298.7 million (2013 – GBP242.8 million) driven mainly by Premier League broadcasting, the FA Cup run and commercial activity including a full year of the Club’s extended partnership with Emirates.
– Taking account of increased costs, principally wage costs, operating profits (before depreciation and player trading) from football increased to GBP62.1 million (2013 – GBP25.2 million).
– Wage costs of GBP166.4 million (2013 – GBP154.5 million) represented 55.7% of football revenue (2013 – 63.6%).
– Profit on sale of player registrations was reduced to GBP6.9 million (2013 – GBP47.0 million).
– Low key year for property business with revenues of GBP3.2 million (2013 – GBP37.5 million including sale of the market housing site at Queensland Road) and operating profit of GBP0.4 million (2013 – GBP4.4 million).
– The Group has no short-term debt and continues to be in a robust financial position with cash balances, excluding those amounts designated as debt service reserves, of GBP173.3 million (2013 – GBP119.6 million).
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