Arsenal published their latest financial accounts on Wednesday.
The club confirmed they made a record revenue of over £600million, but did still record a loss of £17.7m for the year ended May 31, 2024.
Here, with the help of football finance expert Kieran Maguire, Standard Sport takes a look at what Arsenal’s financial results mean ahead of the summer transfer window…
What did you make of Arsenal’s financial results?
Kieran Maguire: We have got a rather smug saying in the world of finance – revenue is vanity and profit is sanity.
Arsenal have done very well on the back of Champions League qualification to boost all of the main sources of revenue.
They have higher money from ticket sales, practically matching that of Manchester United – which is spectacular. The broadcast money for being in the Champions League has shot up as well and they have managed to get bonuses come in from sponsors.
Being in the Champions League has been a big boost to Arsenal’s finances
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These figures show the importance of qualifying for the Champions League and also show how much the club suffered for that period of not being in it. Overall, they are a good set of results.
Why did Arsenal still make a loss? Was it because the wages went up?
KM: I don’t think the wages are an issue, because they are only paying £53 in wages for every £100 that is coming through the door.
That’s their third best [ratio] in the last 12 years – and it is well below UEFA’s 70 per cent position. It is that broader costs have gone up as well.
Football is a tough industry. Arsenal broke even on a day-to-day basis, taking into account player sales – which were good.
Then they had an interest cost which was quite high this year. Their interest cost trebled, which is why they made a loss.
How do Arsenal look in terms of cost control measures?
KM: From a PSR (Profit and Sustainability Rules) point of view, they are in a really strong position.
They have got nothing to worry about going into the summer of 2025 looking at these figures.
Under UEFA rules you can spend £70 on player wages and transfer fees for every £100 that comes through the door.
Well, they are spending £53 on wages. I think, again, they have got flexibility there.
Are Arsenal in a good position to add to the squad this summer then?
KM: Yes. They have got no cost control concerns whatsoever, would be my observation.
The wages are well under control. They have used Stan Kroenke as their lender. Whether that is going to go ahead, we will have to wait for the ruling on the new associated party transactions rules.
Mikel Arteta is eyeing a big summer for Arsenal in the transfer market
Arsenal FC via Getty Images
But even if that goes in favour of the Premier League, I don’t see Arsenal have any problems at all.
They are in a very strong financial position to spend what they want. They spent £256m last season and £251m the previous season. They have certainly got the capacity to invest heavily in the market – should they wish to do so. They have the capacity.
But it, as we have seen with other clubs, is about spending it well rather than spending it big that ultimately matters. Spending it big and well is the absolute sweet spot.
How do Arsenal’s financials compare to other Premier League clubs?
KM: I think these results restore Arsenal to the top table.
They were in danger of it becoming a top four plus two – and Arsenal and Spurs would be the plus two.
Looking at these numbers, this takes Arsenal back to being competitive.
Arsenal have got a revenue of £616m. Manchester City are over £700m. Manchester United make £662m, so Arsenal are not far behind them. Liverpool were £594m in 2023. So, Arsenal are now in the leading pack whereas they were in danger of becoming slightly disconnected.
