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State of Arsenal's finances: What we know about wages, ticket prices, FFP and debt

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State of Arsenal's finances: What we know about wages, ticket prices, FFP and debt

For the fifth consecutive year, Arsenal’s accounts have recorded a loss. Their books for the year ended May 31, 2023, show an overall deficit of £52.1million ($65.8m) — a £6.6million increase on their losses for 2021-22.

But, a little like the first team’s wobble in form over Christmas, the underlying numbers provide a little more room for encouragement.

Overall revenue was up to £467million — a 25 per cent increase on the previous year.

The financial result was however impacted by “impairment write-downs on certain player registrations amounting to £18.1million, which by virtue of their quantum are classified as exceptional”. Without those exceptional items, the loss before tax amounted to £34million — not great, but an improvement on the previous year.

Here, The Athletic explains what these results tell us about Arsenal’s financial position.

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What exactly do these results cover?

These results cover Arsenal’s trading for the year up until May 31, 2023. That means it encompasses the signings of Gabriel Jesus, Oleksandr Zinchenko, Fabio Vieira, Leandro Trossard, Jakub Kiwior, Jorginho and Matt Turner. This summer’s spending — including the club-record £105million deal for Declan Rice — will appear in next year’s results.

How have Arsenal raised their revenue?

Arsenal’s improvement on the field has helped them generate more revenue. Their title challenge in the 2022-23 Premier League saw them earn more from broadcast revenue.

Crucially, this was also the season in which Arsenal returned to European football, in the form of the Europa League. As a consequence of playing in Europe and improving their Premier League position from fifth to second, broadcast income rose £45million to £191.2million. However, their relatively early exits from cup competitions put a cap on their earnings.

“During 2022-23 and subsequently during the summer 2023 transfer window, the club has again invested strongly in the development of its men’s first-team playing resources,” reads the report. “This investment recognises that qualification for UEFA competition represents a pre-requisite to re-establishing a self-sufficient financial base.”

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Arsenal’s return to the Champions League has boosted their income (Clive Rose/Getty Images)

Arsenal confirm they are “reliant on the continued financial support of its ultimate parent company, Kroenke Sports & Entertainment (KSE)”. The Arsenal board, however, have aspirations of returning to a financially self-sustaining model. For that to be the case, continued European qualification is essential.

A shift in strategy and emphasis on retail delivered club-record commercial income of £169.3million. The department is growing — commercial and administrative staff rose from 364 to 426. With the new Emirates deal set to start in 2024-25, commercial revenue should only increase.

Despite a club record in income, Arsenal’s overall revenue remained behind the declared figures for Manchester City, Manchester United, Liverpool, Chelsea and Tottenham Hotspur. This can be explained in large part by the fact four of those teams were playing Champions League football. Spurs’ new stadium has also seen their matchday revenue exceed Arsenal’s.

What are those ‘impairment write-downs’?

Impairment losses occur when a business asset suffers a depreciation in fair market value, which is more than the book value of the asset on the company’s financial statements. In football terms, it usually occurs when a player has sustained a serious injury or a player’s market value crashes far below what was originally paid for him.

The financial report is too discreet to name any specific players but presumably, the disastrous £72million signing of Nicolas Pepe is a factor here.

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Arsenal’s inability to sell players continues to cost them. They made just a £10.7million profit from the sales of Matteo Guendouzi, Lucas Torreira, Bernd Leno and Konstantinos Mavropanos. The report explains: “The club’s ability to realise profits during 2022-23 was again adversely impacted by market conditions with reduced overall liquidity as clubs’ acquisition budgets continued to be impacted by financial pressures post-pandemic.”

How is the wage bill looking?

The last set of results saw the wage bill getting smaller, as a consequence of allowing highly paid stars, including Mesut Ozil and Pierre-Emerick Aubameyang, to leave.

The addition of several new players to the men’s and women’s teams has seen that grow to £234.8million. That is expected to rise again in the next set of accounts, with arrivals such as Rice and lucrative new contracts for Martin Odegaard and William Saliba.


Saliba has signed a new deal (Stuart MacFarlane/Arsenal FC via Getty Images)

Impressively, Arsenal outperformed their total salary cost with on-field achievements by some way. The wage bills at Manchester United (£331.4million) and Chelsea (£404.9million) dwarf Arsenal’s, yet it was Mikel Arteta’s team that ran Manchester City closest.

Wages now account for just 50 per cent of revenue — a very healthy position.

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What is Arsenal’s FFP and PSR position?

As of the end of May 2023, Arsenal were confident the club “continues to be compliant with applicable financial sustainability regulations put in place by UEFA and the Premier League”.

In the Premier League profit and sustainability regulations (PSR), clubs are permitted to make overall losses no greater than £105million over a three-season period. Although Arsenal’s combined losses exceed this figure, the leeway clubs were granted as a consequence of the pandemic means they are still in a relatively comfortable position.

There has been significant expenditure since then and Arsenal have indicated that financial regulations were a factor in their decision not to enter the January transfer market. This may have been to ensure they could spend significantly in the summer of 2024.

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What about the season ticket prices?

Arsenal recently announced a season ticket price hike of up to six per cent in certain parts of the ground. Part of the explanation was a rise in operating costs. There’s some justification here: Arsenal’s results illustrate a rise of £40million in their non-salary costs, partly due to UK inflation.

The increase in matchday revenue achieved by the price increase, however, will remain relatively small. Arsenal fans will still feel the additional funds could be generated by other means — especially as the new Champions League format means the club will most likely benefit from more home games next season.

What is the debt situation?

Aside from money owed on transfer fees, the majority of Arsenal’s debt is to Stan Kroenke. Arsenal borrowed a further £41million from their owners in 2022-23, taking their total debt to KSE to £259million.

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It’s a lot of money, but Arsenal have spent much of the past decade in a similar degree of debt. The positive is that the debt is to parent company KSE rather than external creditors, with favourable interest rates.

Any other business?

Arsenal have confirmed that Ashburton Trading, a subsidiary of the football club with a focus on property development, have finally been granted permission to develop a new block of student accommodation in the shadow of the Emirates Stadium.


An artist’s impression of the proposed student accommodation (CZWG)

Arsenal’s original plan for a 25-storey building at 45 Hornsey Road was rejected by Islington Council in 2011. After more than a decade, a compromise has been reached on a 12-storey building that could house 284 students.

Arsenal have also included what is becoming their customary statement on the ongoing row over the dissolution of the European Super League. “The Group is monitoring certain ongoing matters relating to the closure of the European Super League project,” they write. “If any additional costs arise as a consequence, these additional costs would be fully recharged to the parent entity, KSE.”

If Arsenal are financially liable for reneging on the Super League agreement, it seems their owners will foot the bill.

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(Top photo: Stuart MacFarlane/Arsenal FC via Getty Images)

Finance

Bérangère Michel announced as BBC Group Chief Financial Officer

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Bérangère Michel announced as BBC Group Chief Financial Officer

The BBC has announced that Bérangère Michel has been appointed to the role of Group Chief Financial Officer.

Bérangère brings extensive experience from her 16-year career at the John Lewis Partnership, where she held senior roles including Chief Financial Officer, Customer Service Executive Director, Operations Director and Finance & Strategy Director.

Prior to joining the John Lewis Partnership, Bérangère spent 11 years at the Royal Mail Group in a number of finance, change and strategy roles, including as Finance Director of the property division.

In an expanded role as BBC Group Chief Financial Officer, Bérangère will be responsible for the overall BBC Group financial strategy, with a remit across BBC Public Service, BBC Studios and the BBC’s commercial subsidiaries. She will play a leadership role and will sit on both the Executive Committee and, for the first time, the Board.

This position will strengthen the BBC’s financial leadership, support its transformation, and make the best use of the licence fee and commercial opportunities. Bérangère will report to the Director-General and will take up the role in early January.

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Director-General Tim Davie says: “Bérangère brings a wealth of experience from her time at the John Lewis Partnership and will play a critical role in shaping our new financial strategy. I’m pleased to welcome her to the BBC, and to both the Executive Committee and Board.

“Bérangère’s appointment to this expanded role comes at an important time for the BBC, as we look ahead to Charter renewal and continue to accelerate our transformation to deliver outstanding value for our audiences.”

BBC Chair Samir Shah says: “The role of Group Chief Financial Officer will be hugely important as we build a BBC for the future, and I look forward to welcoming Bérangère to the Board.”

Bérangère Michel says: “I am delighted to be joining the BBC, an institution whose purpose and mission I have always admired. It’s a privilege to be part of shaping its exciting future at such a crucial moment and I cannot wait to get started.”

BBC Press Office

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ATI Promotes Longtime Leader to CFO and SVP of Finance

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ATI Promotes Longtime Leader to CFO and SVP of Finance

ATI Inc., a Dallas-based manufacturer of high-performance materials for the aerospace and defense industries, announced that James Robert “Rob” Foster will be promoted to senior vice president of finance and chief financial officer, effective January 1, 2026.

Foster succeeds Don Newman, who will serve as strategic advisor to the CEO beginning January 1. As previously announced, Newman will retire on March 1, 2026, and serve in an advisory capacity in that time to allow for a smooth transition.

“Rob is a proven P&L leader with enterprise-wide experience in the areas that matter most to ATI’s continued growth,” Kim Fields, president and CEO, said in a statement. “He brings deep expertise not only in finance but also as an operational leader. Rob played a pivotal role in the successful Specialty Rolled Products transformation, consistently helping ATI to deliver strong returns and shareholder value. I look forward to partnering with him as we enter our next phase of profitable growth.”

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Foster, a longtime ATI leader, brings both operational expertise and financial discipline to the CFO role, the company said. He most recently served as president of ATI’s specialty alloys & components business, where he improved efficiency, grew capacity, and advanced the company’s role as a global leader in exotic alloys. Foster previously served as vice president of Finance, Supply Chain, and Capital Projects, overseeing ATI’s global finance organization, capital deployment processes, and enterprise supply chain performance. Earlier in his career, he led Finance for both ATI operating segments and the Forged Products business.

“I’m honored to become ATI’s next CFO,” said Foster. “ATI is well-positioned with a strong balance sheet, focused strategy, and significant opportunities ahead. I look forward to working with our team to drive disciplined investment, operational excellence, and long-term value creation for our shareholders.”

Newman added, “Rob is an exceptional leader who understands ATI’s strategy, operations, and financial drivers. He has delivered transformative results across the organization. I look forward to supporting a seamless transition as we pursue this next step in our succession planning.”

Before joining ATI in 2012, Foster held senior finance roles at API Technologies Corp. and Spectrum Control Inc., where he led ERP implementations, acquisition integrations, and internal control enhancements. He began his career as an auditor at Ernst & Young (EY).

ATI produces high-performance materials and solutions for the global aerospace and defense markets, and critical applications in electronics, medical, and specialty energy. 

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R E A D   N E X T

  • The company said Keith Schroeder brings more than 40 years of experience in accounting, corporate control and reporting, finance, operations, and CEO and CFO strategic roles.

  • James Cook announced his retirement after 24 years of service and will officially retire on June 30. James Gilligan will take his new post, effective June 16.

  • Anthony DiSilvestro joins KDP at a pivotal moment as it moves to close its $18 billion acquisition of Netherlands-based JDE Peet’s. His “significant” M&A experience will advance the combined company’s integration and its ultimate split into two “winning companies,” CEO Tim Cofer said.

  • Donna Guy brings more than 25 years of experience in financial leadership across public and private companies to her new position. 

  • Last week, Irving-based Caterpillar marked its 100th anniversary year with celebrations throughout the U.S. commemorating “a monumental moment” in the company’s history. The company officially turns 100 on April 15, marking a century of “customer-centric innovation and industry-leading transformation”

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Abu Dhabi seeks to build bridge between new media & finance – The Times of India

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Abu Dhabi seeks to build bridge between new media & finance – The Times of India

ABU DHABI: Instead of waiting for the future of media, Abu Dhabi is building it. The city played host this week to leading names from media and entertainment industries at the Bridge Summit, aptly named for seeking to position the emirate at the intersection between new-age media, innovation and investment.The three-day event at Abu Dhabi National Exhibition Centre from Dec 8 to 10 buzzed with energy, new ideas, collaborations and MoU deals as thousands of content creators, media brands, communicators, tech developers, AI innovators, investors and academics — who have been working in isolation — converged to brainstorm ideas, analyse future trends in the media industry and discuss ways to monetise them. How to get around the associated risks of privacy violation, fake news and narratives, defamatory content and online harassment were a natural corollary to the discussions.The idea of Bridge Summit originated at a lunch meeting in Abu Dhabi earlier this year between Sheikh Abdulla Bin Mohammed Bin Butti Al Hamed, chairman of UAE National Media Office, and Richard Attias, the Moroccan events producer associated with the Clinton Global Initiative, Nobel Laureates Conference and Davos Forum. The two discussed how UAE could give media, creators, tech innovators, social media outlets and investors a platform to connect and build the future of media. Eight months later, that dream turned into reality with Bridge Summit.Al Hamed, in his opening address, outlined Bridge Summit’s mission to unite media, technology, finance, and culture in building a more trusted, inclusive, and resilient information order.Speaking to TOI on the sidelines of the summit, Jamal Mohammed Obaid Al Kaabi, DG, UAE National Media Office and Bridge Alliance vice-chairman, said the forum seeks to secure a win-win situation for all, be it govts, media, content creators, social media platforms, gamers, investors and technology providers. “We are trying to help everyone — those who have a story to reach production, a company to reach a customer and govts to understand what’s happening in the market”.He added: “We believe that Bridge can be the brand that people will trust and look at in the future. We can connect it with media initiatives around the world. We believe that positive narrative can be supported through Bridge”.The global media and entertainment industry generated over $2.8 trillion last year, with gaming alone rivaling film and television at nearly $200 billion. Streaming continues to reshape consumption, while nearly 70% of content creators are already using AI tools.Rubbing shoulders at the summit were former heads of state, journalists, representatives of social media platforms, AI innovators, gaming developers, entrepreneurs and media influencers from across the globe; actors Priyanka Chopra Jonas and Idris Elba and footballer Gerard Pique lent it star power.Over three days of fireside chats, panel discussions, workshops and MoU signing, content creators and influencers took lessons from experts and peers on how to tell their stories better and hold their audience’s attention till the last frame.With artificial intelligence (AI) tools revolutionising the media space and content creation industry, engagements delved into how to maintain a judicious balance between human intelligence and artificial intelligence while tailoring content to suit users’ preferences and attention span.Sessions reflected on how the traditional print and TV journalism is being rapidly taken over by digital news content. Justin Smith, CEO of independent global news company Semafor, predicted that human journalist will continue to be relevant as the primary resource for original information, but must learn to harness the power of AI to add value. Richard Attias, who is on the Bridge board of directors, had a word of caution: “Human intelligence needs to always challenge artificial intelligence. We should not be losing the control of AI, which is like a robot”.According to UK journalist and broadcaster Emily Maitlis, agenda-based journalism is inevitable in the age of social media as one with a louder voice and reach, who can put out his version of the story more convincingly, tends to control the narrative. Adeline Hulin, chief of media and information literacy unit at Unesco, revealed that a global survey had found that 62% users don’t do any fact-checking before forwarding information online; most content creators are unaware of the international standards of freedom of expression; and just 20% users report hate speech. “Unesco has developed a global curriculum for media information literacy. We are working to integrate it with formal education and getting local partners to organise hackathons,” she said.Former deputy PM of UK Oliver Dowden advocated industry-led responsibility over sweeping regulation, saying there should be “clear guardrails” as creator content becomes the primary source of information for young audiences.Al Kaabi said Bridge Summit is just the beginning and “pop up” events will be held each coming quarter across America, Asia, Europe and Africa. “We want to hold a mini-Bridge in India. Also, there shall be more of Bollywood, not just Priyanka, at the next edition of the summit here,” he said.(The writer was in Abu Dhabi at the invitation of Bridge Alliance)

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