The big talking talking point for many Gooners this morning is the monster salary Ivan Gazidis has been compensated with over the last calendar year. Based on tepid commercial improvements of £5.5million and zero on pitch success, he’s been awarded a 36% increase on his base salary to £1.36million as well as an additional £675k bonus plus £100k pension provisions. I think that makes him the highest paid Football CEO in the UK.
That’s taking your £30k salary and bumping it up to £40.5k without a promotion or any success to your name.
Who out there managed that this year? In fact, who out there managed a 36% increase in pay with a promotion? How does that sit with inflation? How does that sit with people’s idea of chief executive fair pay?
So this bonus… how is it achieved? What exactly is it tied into?
If you want to get a grasp of the figures that flew through the door of most shareholders this morning, take a read of the excellent Swiss Ramble write up.
Here is what Ivan has managed to achieve this year… look at the below as the notes Stan Kroenke will have had in his yearly review.
- He made £65million profit on player sales last summer. To break this process down for you, that’s taking your organisations prized assets and selling them to your competitors.
- Whilst selling our two best players, he managed to increase staffing costs £40million. Can someone remind me of how that works out? Robin Van Persie did not receive a payrise out of that, nor did Wenger or Jack Wilshere.
- If you take away player sales, we made an operating profit of -£30million
- Ivan Gazidis, in three years, with a commercial team estimated to cost the club £15mill a year has overseen commercial revenue increases of 9%
- We create 40% less commercial revenue that Manchester United
- In the same three year time period, Barcelona and Real Madrid have grown their commercial deals by £90million.
- In the same three year period, Liverpoool have grown theirs to £17million, City to £40million and that, according to the Swiss Ramble, is before they announce their shirt deals in their reporting.
- United – Wayne Rooney
- Madrid – Christiano Ronaldo
- Barca – Lio Messi
I hope with the Ivan Gazidis salary jump, we can all see through his hypocrisy. He’s delivered very little the fans care about over the last year, he’s delivered very little intelligent cash to the balance sheet (when I say intelligent, I mean something that goes beyond season ticket sales which we contribute to or player sales which is always the easiest revenue generator). Yet he’s been awarded a 36% pay rise.
What is that for? Is that for keeping Wenger in check when buying players? Well it can’t be, otherwise he’s lied in his report when he said Wenger has total control of the budget. Geoff assures me he can’t lie in that report from years of compiling them himself. So what’s the deal here? Both Arsene and Gazidis are the highest paid in the league and both have delivered very little in terms of success?
I guess the laughable thing is that this move towards FFP and the hope that it’s somehow going to break us free of Oligarchical shackles also seems a whimsical notion. If FFP is about using the cash you generate as a club, we’ll still be miles off the others. United generate more than us, City do, Liverpool do, Barca and Madrid do. So unless we pull our socks up and work out a long term cash generation strategy that has more to it than having the most expensive season ticket prices in the world and selling our best players every single summer, we’ll be in exactly the same position in 5 years time. That’s not good enough and that’s not why we all agreed to move to a shiny new stadium for the better times.
So in an age where we’re scrutinsing the pay of under-performing CEOs the world over, perhaps we should cast our eye a little closer to home, because that 36% seems pretty grotesque from where I’m sitting? More importantly, what are the objectives of Stan Kroenke? If he is rewarding mediocrity, where does that put the long term future of Arsenal? Just an asset that grows in value every year because the stupid fans just keep ploughing money into the club that we unconditionally love? Sounds like a pretty unambitious partner our aging board have put us into bed with… still, as long as everyone is getting rich, bar the fans, everything is ok…
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What do you think? Let us know in the comments.
Team News for tonight:
I won’t give too much of a run down of the game this evening, needless to say there’s not Diaby and Wenger is blaming the French national team for picking him last month. Come on Arsene, you’ve been in the game long enough to know the drill by now. Should there really be exhaustion issues with a player in his mid twenties after about 6 games? No is the answer.
The other bit of potential bad news is around Arteta and his ankle injury. That really would be a problem. He’s had fitness problems in the past, we really can’t afford to lose him as well. Giroud will probably start this evening. My hope is that Olympiacos are an easy game and we can work out a way of adapting to life without Diaby. Nothing but a win this evening. Match report will be with you in the morning!