le arse in the financial wringer | Vital Football

le arse in the financial wringer

Spursex

Spursex

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Exactly as I had predicted last year because of FFP and the lack of CL football, le arse are now deeply in trouble with their payroll costs..

Just one more season out of the CL and without even more surgery to their wage bill, their ability not to buy anyone could run even until next season....

Here's the evidence / outcome of why basing wages on guaranteed income rather than project income is the prudent way to behave i.e. base number + bonus's....

This could be the start of a meltdown financially for le arse if they miss C: football again..

But Emery has now admitted that any deals that do take place this month would have to be on loan.

“We can’t sign with payment for one player,” said Arsenal’s head coach. “We can only loan players.

“The club is working. The club is telling me each moment that different situations can happen for recruitment. But at the moment I don’t have new news on that.


"I don't know now his [Suarez's] situation. But we can only sign on a loan and I know the club is working for the possibility of players who can help us with this condition."


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Arsenal want Barcelona midfielder Denis Suarez.
Speaking specifically about Banega, who worked with Emery at Valencia and Sevilla, the Spaniard added: “I know this player, he is a very good player. Now I can’t say more.”

Emery’s comments about the club’s finances are sure to fuel further anger from fans towards owner Stan Kroenke, who has not invested a single penny of his own money into the club during the past decade.

Kroenke took full ownership of the club last year after an ongoing battle with Alisher Usmanov. The full takeover was met with frustration by a fanbase who have seen their club fall well adrift of their rivals since Kroenke first arrived on the scene, with the likes of Manchester City and Chelsea operating in a completely different financial climate.
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And in October, managing director Vinai Venkatesham confirmed that Arsenal would continue to work to a self-sustaining model, even though Kroenke had taken sole ownership.

"We have a self-sustaining business model at this club,” said Venkatesham. “That means all the investments we make on the pitch are funded by the revenues we generate off the pitch.

"And we're really confident we can be successful with this model. The ambition we have for this club is completely possible to be achieved in the business model that we've got.
 
Topspur1 said:
I posted some time back that CL football was far more important than winning a cup because of exactly this.
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It once again confirms our approach to wages and contracts is sound and prudent. Building on sand and hoping it's firm enough will only ever end one way.
 
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Even without CL, Arsenal are close to running a profit again would be my guess. I say that as Cech, Ramsey, Wellbeck, Monreal etc will be off that wage bill by the summer based on their contracts. They could recoup money for these players with clubs like West Ham linked with Monreal and Wellbeck this window. Ramsey could go at any point this window for decent money as well.

However, the cumulative effect of no CL over multiple season must have hurt them as has the management of contracts of key players. Emery's not far from have a clean sweep through the club though and with no stadium debt they're well set. He has high earners like Koscielny and Ozil still to figure out though, but he seems to have his core of 15-16 players set and will add to it over time.
 
spurdon said:
And I agreed with you, I actually used the example of Chelsea who will also struggle if they miss out but Arsenal is the acute example.
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I know most of us are sick of waiting, but we are starting to see real improvement in the standing of the club.
See the gooners off this season and Chelski next.
 
The Arsenal Fans now realise that we could be top dog for sometime to come - and le arse are in a panic....


https://www.dailymail.co.uk/sport/f...upporters-Trust-fear-surpassed-TOTTENHAM.html


They're on target for making a £60 mill loss....

Exactly as I said they would be, one / two more seasons out of the CL and they'll be hitting brick walls.


Arsenal Supporters' Trust fear they will be surpassed by TOTTENHAM as club struggle to secure Champions League football with revenue set to drop

By Amitai Winehouse For Mailonline
Published: 13:17, 6 February 2019 | Updated: 13:20, 6 February 2019
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The Arsenal Supporters' Trust fear the club's revenue will drop below Tottenham's this season.
They have also warned that qualifying for the Champions League is 'imperative' as Unai Emery aims to lift Arsenal to a place among the Premier League elite again.
Sportsmail reported on Monday that Emery will have a budget of just £45million in the summer.


The Arsenal Supporters' Trust fear the club's revenue will drop below Tottenham's this season


Arsenal are set to hand Unai Emery a budget of just £45million in the summer transfer window



This despite the limitations in the January transfer window that saw only one arrival — Denis Suarez on loan.
The latest financial figures for Arsenal show that they were down more than £40m to £388.2m for the year that ended on May 31, 2018.
That did not even include the £71m spend to improve the squad after Emery took over from Arsene Wenger.
Given the Deloitte Football Money League suggested Arsenal had a revenue of just £10m more than Spurs, who took in £379m, the AST worry they will be surpassed by their biggest rivals on and off the pitch.

Arsenal could drop below Spurs for transfer revenue by the end of the current campaign
'The AST follows Arsenal financial position closely and it is clear that at present money is tight,' a spokesman told Standard Sport.
'The wage bill has grown too big at a time that revenues have fallen due to only qualifying for the Europa League. For this current season (2018-19), we expect Arsenal to make a loss of about £60m. Even more shocking is that our revenue will fall behind Spurs.
'Looking ahead it shows how imperative it is that Arsenal make the Champions League next year and they will also need to be extremely shrewd in the transfer market'.
Arsenal will receive a boost in the summer with a new shirt sponsorship agreement with Emirates coming in tandem with Adidas taking over as the new kit supplier. Adidas will pay approximately £300m over five years.
 
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Arsenal Supporters' Trust fear they will be surpassed by TOTTENHAM as club struggle to secure Champions League football with revenue set to drop
By Amitai Winehouse For Mailonline
Published: 13:17, 6 February 2019 | Updated: 13:20, 6 February 2019

The Arsenal Supporters' Trust fear the club's revenue will drop below Tottenham's this season.
They have also warned that qualifying for the Champions League is 'imperative' as Unai Emery aims to lift Arsenal to a place among the Premier League elite again.
Sportsmail reported on Monday that Emery will have a budget of just £45million in the summer.


The Arsenal Supporters' Trust fear the club's revenue will drop below Tottenham's this season


Arsenal are set to hand Unai Emery a budget of just £45million in the summer transfer window




This despite the limitations in the January transfer window that saw only one arrival — Denis Suarez on loan.
The latest financial figures for Arsenal show that they were down more than £40m to £388.2m for the year that ended on May 31, 2018.
That did not even include the £71m spend to improve the squad after Emery took over from Arsene Wenger.
Given the Deloitte Football Money League suggested Arsenal had a revenue of just £10m more than Spurs, who took in £379m, the AST worry they will be surpassed by their biggest rivals on and off the pitch.


Arsenal could drop below Spurs for transfer revenue by the end of the current campaign

'The AST follows Arsenal financial position closely and it is clear that at present money is tight,' a spokesman told Standard Sport.

'The wage bill has grown too big at a time that revenues have fallen due to only qualifying for the Europa League. For this current season (2018-19), we expect Arsenal to make a loss of about £60m.

Even more shocking is that our revenue will fall behind Spurs.

'Looking ahead it shows how imperative it is that Arsenal make the Champions League next year and they will also need to be extremely shrewd in the transfer market'.

Arsenal will receive a boost in the summer with a new shirt sponsorship agreement with Emirates coming in tandem with Adidas taking over as the new kit supplier. Adidas will pay approximately £300m over five years.


Arsenal boss Unai Emery will once again have sparse resources at his disposal this summer


How much money do Arsenal make every year?

The last set of financial results saw the club post a healthy after-tax profit of £56.5million, up on the £35.3million from the previous results. It suggests Arsenal are still strong financially. But according to the latest Deloitte Money League, their total revenue was down from £419m to £389m. Yet the fact they are ninth-richest club in world football indicates they still have significant financial clout.

~That profit was only due to players sales, otherwise they would have shown a substantial loss.


Is Kroenke taking too much money out?

It's an issue that has infuriated sections of the Arsenal fanbase in recent years.

But perhaps the more pertinent question is why isn't Kroenke putting more money in?

Well, and Arsenal fans won't want to hear this - under the businessman's control, the club have spent significantly on the playing squad in recent years. The wage bill has gone through the roof, the club smashed their transfer record three times in the space of five years on Mesut Ozil, Alexandre Lacazette and Pierre-Emerick Aubameyang. Arsenal have spent extensively during the recent Kroenke era. Whether the expenditure has proved value for money is an altogether different argument.

- one analysis suggests that the shareholders have been taking around #40-50 mill p.a. out of the coffers.


What are the restrictions on the wage bill?

Their wage bill is at the absolute limit, mainly due to the decision to award Ozil a contract worth £350,000-per-week. The deal essentially means the club - in terms of playing contracts - are punching well above their weight.

The repercussion of that deal are starting to take hold. A restricted playing budget in terms of wages and fees is something manager Unai Emery will have to contend with moving forward. Under Financial Fair Play regulations, clubs can only increase their wage bill by seven per cent per season. Arsenal are approaching that threshold with the current wage bill around £210,000,000 in the latest financial results, hence the restrictions.



And who are the top earners?

Ozil by a country mile. Aubameyang earns close to £200,000-per-week, Henrikh Mkhitaryan is on £160,000-per-week while Lacazette's deal is worth in the region of £140,000-per-week. There are then a host of players earning at least £100,000-per-week. In short: Arsenal's wage structure is at breaking point.


Why are they letting Aaron Ramsey leave on a free?

The decision is believed to have been taken by Emery. But the financial implications on the decision are clear. Ramsey, rightly so, would have expected a new contract worth well in-excess of his current £100,000-per-week wage - perhaps close to double that sum. The club were prepared to give him an improved deal, and Ramsey was ready to sign. But the offer was eventually retracted, with sources claiming Emery - knowing the budget he is working to - believes the money could be used more efficiently elsewhere.
 
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Just reinforces the statement that nothing lasts forever.
 
80deg16minW said:
Just reinforces the statement that nothing lasts forever.
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It also re-enforces my view that financial probity in dealing with the realities of balancing income/out-goings never changes; no matter what the business - (assuming of course you want to remain in business or not have to undertake drastic cost cutting measures and sliding market-place positioning when the going gets tough).

Never thought I'd see Arsenal in this mess, but by their own stupidity (well mainly the lack of financial controls, in-fighting and poor decision making of their board) are now firmly between a rock and a hardplace and are grasping at straws that their new manager can turn it around, with less resources than they've traditionally enjoyed.

Our boards and manager's 'apparent' parsimony, almost looks like a pragmatic virtue by comparison!

I pray they do not find a way to sneak back into the top 4 this season.
 
Spursex said:
It also re-enforces my view that financial probity in dealing with the realities of balancing income/out-goings never changes; no matter what the business - (assuming of course you want to remain in business or not have to undertake drastic cost cutting measures and sliding market-place positioning when the going gets tough).

Never thought I'd see Arsenal in this mess, but by their own stupidity (well mainly the lack of financial controls, in-fighting and poor decision making of their board) are now firmly between a rock and a hardplace and are grasping at straws that their new manager can turn it around, with less resources than they've traditionally enjoyed.

Our boards and manager's 'apparent' parsimony, almost looks like a pragmatic virtue by comparison!

I pray they do not find a way to sneak back into the top 4 this season.
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They now have Barca management who have never had to manage from a financial perspective......
 
We must get top four whatever the cost. It will really turn the screw on Arsenal and Chelsea. I have reason to believe that Chelsea are on the verge of a massive financial reality check too.
 
spurdon said:
We must get top four whatever the cost. It will really turn the screw on Arsenal and Chelsea. I have reason to believe that Chelsea are on the verge of a massive financial reality check too.
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Spot on. When reading the Arsenal tail of woe, Chelsea became top of mind.

Arsenal finished 2nd to Leicester in 15/16. They then finished 5th in 16/17 and 6th in 17/18. Look at the transfers:

16/17 - £86m net spending (incl. Xhaka 34m, Mustafi £35m, Perez £17m)

17/18 - -£9m net spending (£111m In, £120m out excl. Sanchez/Mikhi swap. Ox £35m, Walcott £20m, Giroud £18m out, Aubamayang £56m, Lacazette £53m in)

18/19 - £66m net spending (Leno 19m, Socratis 18m, Torreira 26m)

It's a clear case of speculate to accumulate to get back into the CL that is going pear shaped. £143m net spending over 3 seasons and no significant reduction on salaries. Also, their 2nd place behind Leicester was only on 71 points. That gets you nowhere now.

I believe Spurs best scenario is for Utd into the top 4 at the expense of Chelsea. That will be year 2 for Chelsea without CL football and could see them replicating Arsenal. The difference is of course that billionaire Abramovich might find other ways to get them back in if he's still interested. If you think £143m of net spending over 3 years for Arsenal was an interesting number, Chelsea have had £225m of net spending in the last 2 years following winning the league. After the stadium decision and Abramovich being exiled from UK, it does make you wonder !!!

I thought the days of their being a clear Top 4 monopoly were gone, but there is a glimmer of hope in there that we could form a new one with City, Pool and Utd. Still don't think it will happen though.
 
How did we budget for this season with the stadium delay ? Less gate money, more rent money for Wembley. Has it affected our financial situation and in what way ?
 
I highly doubt whatever our forecast for the delays might have been, that anyone guessed we'd be getting 30k attendances at Wembley in February when they thought stadium would potentially be open in September. We obviously had contingencies, but I'd be surprised if they anticipated such poor turnout at this stage of the season.
 
freundorfoe said:
I highly doubt whatever our forecast for the delays might have been, that anyone guessed we'd be getting 30k attendances at Wembley in February when they thought stadium would potentially be open in September. We obviously had contingencies, but I'd be surprised if they anticipated such poor turnout at this stage of the season.
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I doubt it too. Something has to give.
 
freundorfoe said:
I highly doubt whatever our forecast for the delays might have been, that anyone guessed we'd be getting 30k attendances at Wembley in February when they thought stadium would potentially be open in September. We obviously had contingencies, but I'd be surprised if they anticipated such poor turnout at this stage of the season.
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To balance that, we are probably being paid millions in late fines by the contractors.
 
Or not. Depending on who you believe.

I'd imagine we're not going to try and get damages from them until the work is done if there wasn't a penalty clause in the original contract.

According to rumour mace only took on the management contract on condition they wouldn't be held to the deadline.
 
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