Arsenal flourishes as capitalism ends

Another year, another financial statement.  And another attempt by a bunch of spivs and their banker allies to destroy our lives and our finances.   They had one go in the dotcom fiasco.  Now they’ve had another bash with house lending.  Worse, they are already planning the next attack.

Amazingly, while clubs like Manchester U, CSKA Fulham, and Manchester Arab sail into debts of billions, Arsenal incredibly makes a profit.

Of course you may have read some newspaper stuff saying that the club is in trouble because it is involved in property sales.  So let me (if I may) remind you of one such statement.

This is from the Independent, 17 April 2003.  And I quote word for word for totally stupid lying word…

“Arsenal’s move to a new 60,000-seat stadium at Ashburton Grove has been seriously delayed, it was announced yesterday. The news will heighten speculation that the project may never come to fruition and that the Gunners could end up as tenants at the new Wembley stadium, despite strong denials from Arsenal.

“In a statement, Arsenal said that reports that the proposed move to Ashburton Grove might be scrapped were “completely untrue”. It added: “We remain fully committed to relocating [there]….

“One of the major “issues” alluded to in Arsenal’s statement is the financing of the project, which will cost around £400m if it goes ahead. The Royal Bank of Scotland, which is arranging a £300m loan for the development, has been attempting to syndicate that loan. By attempting to spread its risk – rather than underwriting the whole deal – the bank is showing evident doubts. Finance could be a problem if the loan cannot be syndicated and the RBS pulls out.”

The fact that we now enjoy the comforts of the Emirates shows what a bunch of tossers most financial journalists and their allies in the spiv market actually are.

So here’s the reality of the current Arsenal finances as governments rush to take over what’s left of the financial markets.

Turnover is up again (£223.0 million from £200.8 million last year,) despite the downturn in the property market caused by the spivs.

Broadcasting income up to £68.4 million (2007 – £44.3 million) from new Premier League domestic and overseas TV deals.

But the matches at the Emirates is the most important bit of all, approaching £100 million a year, and rising all the time

Improvement and extension of key player / management contracts resulted in total wage costs increasing to £101.3 million (2007 – £89.7 million), belying another story – that Arsenal don’t pay good salaries.

Profit before tax of £36.7 million was up from last years £26.9 million.

To compare our position with the Bankrupt clubs the debt is £318.1 million but this includes £133.5 million of bank loans used to fund investment in the Highbury Square.  All this and much more will be recovered as the sales come in.  

Legal completions from the first phase of 65 apartments released at the end of July have so far generated sales proceeds of £18.7 million.