Liverpool bust, Man U bust, Arsenal’s amazing profits. Compare, contrast, wonder and enjoy « Untold Arsenal: Arsenal News. Supporting the Lord Wenger in all he does

By Tony Attwood

So having done my bit yesterday to put the boot in vis a vis Liverpool and Manchester IOU here’s what Arsenal FC have been up to

• The completion of sale of 362 (2009 – 208) private apartments at Highbury Square and the social housing site at Queensland Road generated £156.9 million of revenue from property (2009 – £88.3 million) and allowed the Group to repay £129.6 million of bank loans.

Let’s note that – when all of Liverpool and Man U’s “profit” is eaten by the banks, we are paying off the loans taken out to develop the Ems

• The Group’s property business is now debt free and generating surplus cash for the Group. The overall level of Group net debt had been reduced to £135.6 million (2009 – £297.7 million) at the balance sheet date.

I could run that again and again and again.  When Liverpool are paying £2.5m a week in debt fines in addition to interest (the fines are for being late paying off the debt) – and with the bank just wanting to sell the business without any regard to the future of the club, just read that previous statement again.

• Group turnover increased to £379.9 million (2009 – £313.3 million) boosted by the income generated from property sales.

OK the property sales are one off, but still, it makes good reading, because it is that which has given us the best stadium in the UK.

• Operating profit (before depreciation and player trading) in the football business was £56.8 million (2009 – £62.7 million) after increased wage costs.

£56.8m!!!!!  Now I can imagine someone picking up on this and running the headline “profits slide as Arsenal go five years without trophy”.   Ho ho.  Just read the first word in that little snippet.  We have profits that the rest of the league would die for.

• Operating profit in the property business was £15.2 million (2009 – £7.8 million) reflecting the sales activity at Highbury Square.

• Profit from player trading of £13.6 million (2009 – £2.9 million).

That’s a pretty nifty profit – especially when you look at the squad we now have.

• Group profit before tax was £56.0 million (2009 – £45.5 million) and profit after tax was £61.0 million (2009 – £35.2 million).

Commenting on the results for the year, Peter Hill-Wood, non-executive Chairman, said:

“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.”

Ivan Gazidis, Chief Executive, said:

“The competitive landscape makes it ever tougher to achieve success on the field and standing still is simply not, and never has been, an option for the Club. It is important that we continue to develop a vibrant and robust business with sufficient revenues to sustain success. The Group has made good progress over the last year and I am excited by the opportunities which we have in front of us.”

• Click here for the full financial report (6.4MB .PDF)

Compare and contrast with

Liverpool – teetering on the very edge

Man IOU – existing for the sole purpose of keeping the Glazers alive

Chelsea – desperately scaling back in order to try and meet the new financial regulations, and with nothing like the youth team promise that we have

Man City – spent billions, still not top of the league, and with no chance of qualifying for Europe financially even if they get there.

Tottenham – finances hidden in the murk of the Bahamas and Virgin Islands, not even got planning permission for a new stadium, and utterly dependent on the benefactor

The model which is made up of the youth policy which brought in the 11 year olds 7 and 8 years ago, the world wide scouting which is the envy of the rest of the world, and the financing of the new stadium in part by the sale of the old, plus the continuity of time in the Champs League, is unbeatable.

A word of thanks, perhaps, to Mr Wenger in all this, would not go amiss.