Today saw the release of the club’s annual accounts and as expected it revealed a pre-tax profit £56m, compared with £45m in 2009. Revenue rose from £313.3m in 2009 to £379.9m and net debt was reduced to £135.6m from £297.7m in 2009. The profit figure is derived from property (£11m) and football (£45m). The huge reduction in overall debt is the most surprising of all of the results and it puts us in great stead for the coming years, especially when you consider that Barcelona jizzed a 125m-odd bank loan against the wall in the summer just to cover the wages and running costs of the club. An important point to remember is that the remainder of our debt is borrowed at a fixed rate, so it is a very manageable and predictable cost to the club.
It is good to hear that the property side of things is now 100% debt free and is now generating pure profit for the club. This profit is set to be wholly reinvested in the club, both in the infrastructure and commercial side of things and, most importantly, the team.
Speaking to the official site, Peter Hill-Wood had the following to say regarding the latest set of financial results:
“The most pleasing aspect of these results is that the returns generated in the property business during the year, particularly at Highbury Square, have allowed us to repay £130 million of bank loans and significantly reduce the Group’s overall net debt. We now have a debt free property business which is accumulating surplus cash as further unit sales are made at Highbury Square and which has three further property assets to realise over the next few years.”
There was a slight drop in match day revenue, which Gazidis put down to the vagaries of the way the fixture list fell. Gazidis also pointed out that our youth system isn’t cheap and in order to tie players to the club we have had to increase salaries and renew contracts, which will be reflected in next year’s financial results in the form of a rise in the wages figure. More detailed quotes from Gazidis can be found on the official site.
One somewhat unsurprising thing revealed was that the club is going to build a new medical wing and rehabilitation centre at Colney. I believe it is going to be called the Robin Van Persie wing. Given the number of injuries we pick up, it is badly needed and hopefully we won’t have to send players abroad for treatment in the future.
One final point worth mentioning is that the club now has £127.6m of cash and bank balances in hand. Have a funny feeling Gazidis and Wenger will be hitting Stringfellow’s tonight with a sack for of notes. Well, that’s what I would do, which is why I just write about the club and don’t run it.
Fantastic results, I’m sure you’ll agree. The board and manager have had to endure severe flak over recent years with regard to a lack of transfer activity, yet they have always stayed true to their vision, skilfully guiding the club through a stormy financial climate to confirm the club’s position as the best run in the world.
Today is a milestone day in the history of the club.
The future is bright. The future is Arsenal.
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The North Bank - "It's got va-va-voom" (An Arsenal blog) 
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[…]Arsenal financial report – mo’ money, no problems. « The North Bank – “It’s got va-va-voom” (An Arsenal blog)[…]…
I think that they really need to get some form of silverware this season. This teams needs a trophy, soon, in order to get that winning mentality.
I reckon the slap at Barca deserves one in return, so I might amend your headline to “mo money, no problems, no trophies.”
Seriously, Arsenal’s sound management is to be commended. Add trophies to that, and the world will be at Wenger’s feet.
I aggree that this actually is a good time to be a Gooner. We are living in a very unique age in the history of the club.
We have witnessed a lot of trophies in the last 20-odd years. The club has gone from comapratively small-time to being genuine contenders on the European scene, both financially and footballistically (did I just invent a word there?)
How many teams actually build a new stadium and remain competitive, let alone profitable?
I think that the way the footballing world has changed in the last 10-15 years means that it simply must be viewed as a business (by those in power at the club, anyway) as if the club doesn’t remain a sustainable and viable entity, then there will be no club. Especially when you consider all of the cash rich owners coming into the game and how they have effectively moved the goal posts single-handedly.
The only thing that irks me is the failure to sign a keeper and the persistence with Fabianski. I don’t know if Szczesny is the answer to this problem as he is still young, but I would like to see him get a chance. However, impetuous outbursts like he made this week certainly won’t do his cause any favours.
I am extremely pleased that Ivan Gavidis views Arsenal Football Club, Holdings, whatever, as a business. This remarkable project, moving Stadium, increasing fan base, remaining competitive, (ok no trophies, if you want short term trinkets maybe you should consider whether you are really a fan), debt free, and with genuine CASH to spend, the best youth development project in the UK, a swathe of English! players emerging through that system, what the hell more could you want? The Arsenal Model is finally been recognised as the way forward, but every single team in the Premier League, most of European team too, Barca and Bayer Munich excepted, are MILES behind us.I am an impatient man. I want Arsenal to win everything EVERY year, but the wait to see this Team on the treshold of true greatness, has been worth it. Good times to be a Gooner.
Del you bitter troll.
I for one am extremely happy that Arsenal is doing so well.
Come on Arsenal!
Del, you are a narrow sited idiot. I shouldn’t even bother with you.
Brilliant news and I have the feeling of wanting to see what we can do next year, it’s not very often fans can look forward to their financial results. The fact there is transparency and the property side will potentially boost our profits further next year, this really is a landmark for Arsenal FC. It’s amazing and incomparable to most business models in football, the fans patience has played a part in this success also.
My only fear for the future is that the running of the club is put into the hands of Usmanov or the like but again another positive is the fanshare scheme which suggests the fans are at the heart of what is great about our club. But a big thank you to the board, Gazidis, Wenger everyone who has worked hard to make sure Arsenal continue to be an elite club, one of the best in the world.
56 million yet we could not afford a quality keeper very sad.Investing money in the team, seems to be in the form of giving massive contracts to young players who have won nothing.Players like Hoyte,Randall and Kerrea Gilbert.Investing in the commercial, side will be paying some marketing specialist a mint in order to come up with more ways to fleece the fans.Personally, I think that on the backs of these results the current owners will sell up.The club is healthy and now is the time to get a premium price for the shares.Every interview Gazids does he calls us a buisness, just like the American he is.He rarely refers to us as a football club.We are not AFC anymore we are Arsenal money before trophies.