Arsenal make £52m announcement in latest accounts as new statement released

Latest Arsenal news as the Gunners’ latest set of accounts is released

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Arsenal have announced a loss of £52million for the 2022/23 financial year.

The Gunners say the loss was impacted by ‘impairment write-down’ on ‘certain player registrations’ which have amounted to £18.1 million. They say that the loss before tax, excluding the impact of exceptional items, amounted to £34.0 million.

They add that their return to the Champions League as well as performances in the Premier League have led to an improvement in underlying results. Arsenal currently sit third in the top flight and are in the last 16 of Europe’s elite competition.

“Football revenue for the year was £464.6 million (2022 – £369.1 million),” said an Arsenal statement.

“Broadcasting revenues rose to £191.2 million (2022 – £146.0 million). The reason for this was twofold: the inclusion of UEFA broadcasting revenue and the strong Premier League performance translating into higher merit award and live coverage facility fees.

“Commercial revenues were significantly improved to £169.3 million (2022 – £141.7 million). The club has launched a new commercial strategy delivering particularly strong results from its retail operations during 2022/23.

“The return of European football meant there were 24 home fixtures and matchday revenue was £102.6 million compared to £79.4 million in the prior year. This is the first time matchday revenue has returned to more than £100 million since the 2014/15 season. Across all men’s fixtures, the average attendance was 60,082 (2022 – 59,568).

“Wage costs increased to £234.8 million (2022 – £212.3 million). The increase was mainly driven by investment in player wages in both men’s and women’s teams. There was also an impact from increased commercial and operational headcount.

“The total profit on sale of player registrations was £10.7 million (2022 – £22.2 million) and player loans amounted to £1.5 million (2022 – £2.0 million). Player trading profits continue to have a significant impact on overall profitability and 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.

“During the year there was limited activity in the Group’s property development business where revenue was £2.1 million (2022 – £2.8 million). Since the year end, the Group has finally gained planning permission for its property development site at Hornsey Road. Net finance charges were increased to £6.2 million (2022 – £5.2 million).

“Following additions to player registrations at a cost of £251.1 million and amortisation charges, the book value of intangible fixed assets (player registrations) was increased to £417.0 million (2022 – £333.5 million).

“The year-end cash position was £42.8 million (2022 – £30.0 million). The renewal of season tickets for the 2023/24 season was again very strong but the timing of renewal meant that the cash impact of this was partly deferred until June. The club continues to be compliant with applicable financial sustainability regulations put in place by UEFA and the Premier League.

“Funding is provided mainly by the ultimate parent company, KSE UK Inc., which is wholly owned by the ultimate controlling party, Mr. E. S. Kroenke. During the year KSE UK Inc. provided funds both to underpin the club’s transfer activities and for working capital purposes as required.

“The increase in interest rates in the wider economy means that, under the applicable accounting rules, an element of the loans received from KSE UK Inc. during the year was classified as a capital contribution.

“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. This investment recognises that qualification for UEFA competition represents a pre-requisite to re-establishing a self-sufficient financial base.

“We have also continued to invest strongly in Arsenal Women and the women’s game continues to experience significant growth in interest and support. This investment would not have been possible without the support and commitment of the club’s ownership, Kroenke Sports & Entertainment.

“Qualification for the UEFA Champions League for 2023/24 represents another positive step and the 2023/24 season has so far been encouraging”.

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