Arsenals finances

[Gunga Din]

they are seriously skint and skirting with financial disaster

[Falconhoof]

what makes you think they are skirting with disaster Wayne ?

 

increased debt, sure, but much higher earnings.

[Ronnie Whelan]

Earnings are up, profits are down, so an obvious increase in their cost base somewhere along the line. I would imagine due to the cost of financing the increased debt.

 

One thing for sure is that they need CL footie on a regular basis. There was a rumour doing the rounds that they needed CL 13 out of the next 15 in order to finance the debt, but i think that was shot down. Whether or not that time period is correct a co with that level of debt cannot afford a decrease in revenues, no matter what they say.

[Gunga Din]

what makes you think they are skirting with disaster Wayne ?

 

increased debt, sure, but much higher earnings.

 

have you any idea how much it will cost to service that debt. even on interest only, its going to take upwards of £20mil a season. without CL football Arsenal could be in serious financial dire straights.

[Andy @ Allerton]

have you any idea how much it will cost to service that debt. even on interest only, its going to take upwards of £20mil a season. without CL football Arsenal could be in serious financial dire straights.

 

[jon_hall]

Wasn't there a thread on here about this already? Or maybe i'm thinking of RAWk, in regards to all the finances of the a***.

[Ronnie Whelan]

Wasn't there a thread on here about this already? Or maybe i'm thinking of RAWk, in regards to all the finances of the a***.

 

 

There was one going back a while which mention the period of neccessary participation in the CL.

[ChrisC]

have you any idea how much it will cost to service that debt. even on interest only, its going to take upwards of £20mil a season. without CL football Arsenal could be in serious financial dire straights.

 

 

 

 

Now look at them Chelsea, thats the way you do it, spending all your money for the champions league , oh that aint working......

[£440,000]

I wouldn't want to see Arsenal get into trouble. We've not done too badly over the years with them around.

 

Would happily see United or Chelsea go t*** up though.

[Kahnee]

I'd be cautious about crowing over Arsenal's finances when we're about to do what they've done and build a spanking new stadium...

[£440,000]

Indeed.

[fyds]

A stadium we don't need.

Lip up fatty.

[R A Softlad]

Lip up fatty.

 

 

[growler]

Also, don't forget the increase in revenue next year from the new tv deal. So if they have be tight 1 or 2 years until it kicks in so what?

 

Also, they could always sell Cesc for 40-50mil...

[RP]

Their figures (released yesterday or the day before) look fine.

[Kahnee]

A stadium we don't need.

 

Yeah. I mean, what use would all that extra venue be?

[Andy @ Allerton]

Yeah. I mean, what use would all that extra venue be?

 

Not going to have any return on it for a long, long time

 

What if the bottom falls out of football before then?

[Bootle Buck]

They can just sell off some of the young talent they paid next to nothing for. That would drum up a quick 100+ million

 

Come to think of it they won't need a big transfer kitty for a while with a pool of young talent like this.

 

Fabregas, Eboue, Van Persie, Senderos, Toure, Djourou, Walcott, Diaby, Adebuyor and Clichy.

[fyds]

It's higher than they would like, but not seriously so - at least not yet. They need to perform well to keep it ticking over at acceptable levels and they'll be fine barring some external mess beyond their control.

[growler]

Not going to have any return on it for a long, long time

 

What if the bottom falls out of football before then?

 

then we're all gonna be bent over and taken for a ride. None of the clubs could survive if that happens. at least they'll have a saleable asset.

[Rimbeux]

Big numbers but the reality is they are making over £30m extra each season, they have over £30m sat in the bank, they've taken a decision to pay off more over longer, but vastly improve their cashflow. The danger they have is not being competative on the pitch, leading to falling revenue, but improving the cashflow should make sure that wont be for investment in the team.