Unambitious Arsenal continue to hoard mountains of cash…

by .

#GetWellSoon

#GetWellSoon

Happy Saturday everyone, how was your Valentines day night? I can’t even remember mine! That’s how good it was…

Anyway, let’s talk football, because we all love football.

Arsenal announced their financials yesterday. Guess what? We have even more money than many predicted! £120m cash available to the manager to spend. Quite incredible. By the summer, realistically, we could have another £40m! So the manager could literally go on a Chelsea style spending spree all within the confines of ‘sustainable’… here are the highlights, which in the main, from a sporting perspective are actually low lights…

These were pulled together by Rhys who is a long time Grover that understands a bit more about the money than me.

Topline…

1. Arsenal have continued to hoard cash in the first half of this financial year, the position improving £20m over a year before. They now have £143m in cash, of which just over £120m is free to use. This will rise by another £40m this summer.
2. The turnover is pretty much identical to last year, with the one-off property sales of last year being replaced with new commercial deals, extra Emirates Cup revenues and more TV money. Based on there being 17 matches in the second half vs 11 in the 1st half at home, annual turnover should get close to £300m. Revenue in the football segment is up just shy of 30% this year.
3. Arsenal’s net transfer spend in cash terms in the summer was only £12m. This is obviously due to spreading out transfer fee spending and receipts over several seasons, but it hardly shows the club pushing the boat out, does it?
4. Wages have gone up again, with an extra £9.2m for 6 months suggesting an increase in the wage bill close to £20m for the full year. That is what might be called ‘inflation-busting pay rises’, it being somewhere between 13 and 18% depending on what the actual total bill for football staff wages actually is.
5. The stadium repayment will see outstanding debt drop below £200m in 2015, which is rather at odds with all the fans and media pronouncements that ‘Arsenal have paid off their stadium debt’, doesn’t it?? The first 10 years will have seen £60m out of £260m capital repayments with quite a bit of associated interest added on. But as a percentage of annual turnover, the mortgage payment will have dropped from around 9% to 6% over a 10 year period.
6. The only reason the period saw a P+L profit is due to a £5m tax credit associated with changing government corporate tax rates. Otherwise they made a small P+L loss.
7. In cash terms, the first half is always less good than the second half due to the imbalance of home fixtures, so a loss of £10m is well within the bounds of a cash-neutral full-year wet of accounts.
8. The only real item of interest on the balance sheet is a £35m worsening of the ‘short-term debtors – short-term creditors’ position: not sure of the reason, but it’s nothing radical to worry about. Most of it will be due to increased wages, a £10m+ instalment for Ozil and less transfer payment income from old sales I suspect.

So there we are. Arsenal are well run, we turn in great financials, but we’re not exactly pushing the boat out. We have an owner who is so anti risk it’s embarrassing he opts to run sports clubs, we have a manager who is so absorbed in his one man mission to win things on a budget he won’t push for trophies and we have a CEO who kind of sits on the fence in case he’s told off.

A beautiful concoction that means we suffer top four mediocrity. I was speaking to a Leeds fan yesterday and he laughed at my Premier League ‘first world’ concerns, and he’s right, we shouldn’t moan… but it could be so much better. So I will moan.

In other news, Jose Mourinho has been drawing attention to himself which is dull as dishwater, but mildly amusing because however much you hate him, he kind of has a point on Wenger…

“He’s a specialist in failure,”

“If I do that in Chelsea, eight years, I leave and don’t come back.”

When you’re kicking on for ten years without a trophy, it’s difficult to really carve yourself out as being successful. There are, of course, many metrics of success, but let’s not make excuses here. If you’re paid £7.5m a year, your main metric for success is a trophy. You need to deliver something. You need to push the boat out to win things. You need to deserve that next deal.

I like the stability Arsene brings to the club, especially when you consider the mess that’s occurring over at United. However, we’re hardly capitalising on 6 clubs around us changing up there manager over the last year. Wenger has geared himself up for another failure this year… yet he has £120m in the bank. What would be the excuse this year?

‘Money isn’t the answer, even thought it’s the reason Chelsea or City have won something…’

What would be the justification for another deal if we’re being honest… we’re building something? Wenger has been building something for a decade. When do Arsenal put a stake down in the ground and say… Arsene, you need to win something now.

Who bloody knows. But take all emotion out of what Jose is saying, take away the fact it’s a classless comment… he’s right, and that’s why it hurts.

… it also takes the focus off Chelsea being the clear favourites for the league now.

Have a great day… I’m off to nurse a hangover and build some phone book bridges after sending message to all the single ladies.

Whoops…

644 Responses to “Unambitious Arsenal continue to hoard mountains of cash…”

Jump to comment form ↓

  1. samsensible

    Norfolk so would I. But I’m saying that Project Youth was a necessity which yielded poor results.

    I want us to spend 100m on Draxler and Cavani in the summer plus another 40m on a world class DM. I’d like us to not give so much of a fuck about the balance sheets for once.

  2. Ilerioluwa

    So, I would ask again.
    All those players won’t have signed contracts on lesser wages, right. If a smaller club was going to pic them off, two things were Sure. 1 the smaller club couldn’t have offered them relatively high wages like arsenal. We are a wealthy club 2 we could have sold them and bought similarly talented players on lower wages than they were on with the money obtained from them.
    A project youth is all well and good. But not a project youth of high wages for players who haven’t displayed that potential or were even particularly special to begin with.
    What was there to be afraid of by offering those players moderate wages for their moderate talent. Who else would have offered bendtner 52k a week at that time. Villa?

  3. Keyser

    TYAG – Lol see that’s all people come on here, for childish responses like that, what’s the point in posting if that’s about as much thought as you’re going to put in ?

    There should be a new group, the ‘I Don’t Give A Shit, I Want a Moan’ group.

  4. Thank you and goodnight

    Wenger’s the best, most amazing manager in world football. The Muhammad Ali of the football world. Next year he’ll show you and if not next year, the year after that.

  5. Thank you and goodnight

    @Keyser
    In the real world the majority of us inhabit, wenger’s a senile has been failure of a manager.
    But in your world , where all things Wenger are rosy, life’s happier. So I’ve decided to come over to the light side and be forever happy and in awe of an amazing job that Wenger’s doing. And if we lose today it won’t be wenger’s fault it will be the officials. And if we win it will be because wenger’s a genius. A win win situation. Have to admit the light side is a lot happier, should of switched ages ago.

  6. Ilerioluwa

    “Project youth was a neccesity.” That’s debatable, but let’s agree with you.
    It yielded poor results. Undeniably. But that’s only because it was handled poorly. My case. A project youth should be handled player by player, case by case. Not giving every moderately talented fellow out there a high wage simply because of a so called socialist wage structure.
    Project youth wasn’t the problem. I never said it was. The socialist wage structure was.

  7. Jamal

    Keyser,

    ” if that’s about as much thought as you’re going to put in ?”

    I was waiting for this comment. Its a blog so what do you expect?

  8. Keyser

    Ilerioluwa – In this country for the past decade or more we had a catchement area, we could only bring in English players from a certain distance from the ground, hence we started looking abroad, they don’t have that in Spain.

    So when we offered Fabregas the chance to play for us, he would’ve wanted decent wages, and/or a real chance he wasn’t going to get at Barcelona. We still paid 2 million or so in compensation I think.

    So you’re saying once Fabregas asked for a new contract we should’ve sold him for a slight profit, and then tried to find the next Fabregas.

  9. Keyser

    Jamal – “I was waiting for this comment. Its a blog so what do you expect?”

    Heh, read his next one.

    “In the real world the majority of us inhabit”

  10. Ilerioluwa

    Keyser
    Even after those games, he shouldn’t have been on more than 30k a week. For a supposedly frugal club

    Sensible
    I never attacked the basic premise of project yÓuth. I don’t know how much we had to spend but I suspect it was a lot more than was spent.
    What I attacked was the socialist wage structure of the project yÓuth. Which caused us to give huge contracts to undeserving talent.
    The PY and the SWS are two different things and its the latter that made me a bit certain that wenger isn’t an elite manager in any way.

  11. rollen

    Keyser February 16, 2014 11:10:01

    TYAG – Lol see that’s all people come on here, for childish responses like that, what’s the point in posting if that’s about as much thought as you’re going to put in ?

    There should be a new group, the ‘I Don’t Give A Shit, I Want a Moan’ group.

    there should be script to block some users boring pointless wall of text posts

  12. Keyser

    there should be script to block some users boring pointless wall of text posts

    and a script to block people asking to bl..

  13. Johnty79

    Well at least were all agreed we want a Liverpool win and 6th place finish and we can all start supporting this club again.

    New manger…tony pulls! Look at crystal palace they have more pace and a bigger goal threat than us.

    He would get us to be feared again. Even when struggling under graham I didn’t want him out as at least we were still challenging for trophies. Under wenger we never challenge for trophies.

  14. andy1886

    SamS, your argument is an interesting one but it isn’t flawless as you claim.

    As you said, the idea is that you pay high wages to try to stop the rich clubs stealing your young talent. The trouble is, as has already been pointed out, the wage is irrelevant because if the player does become the success you hope for the richer clubs will ALWAYS offer more than you do. The v.Persie and Nasri examples for instance.

    On that basis it makes it no easier to hold on to them if you pay them £20k or £50k, they will still leave when Citeh or Chelsea offer £100k.

    And as you admit, should they not meet expectations that really is huge great flaw in the process. Pay on performance works for any other business and football isn’t any different.

  15. Ilerioluwa

    Keyser
    Fab was a special talent. He was always worth every bit of the money he earned at all times. He HAD already demonstrated his talent several times.
    Many of the others like Bendy, den and others had at no time demonstrated EXCEPTIONAL talent or much talent at all, so they should have been easily replaceable.
    Even with project youth, there should have been a kind of discrimination among players, NOT a blanket socialistic whatever that assumes. ALL OR MOST OF THE PLAYERS WOULD COME GOOD. Where else would the non fabregases have gotten such stupendous wages for the talent they had shown(correct me if I am wrong)

  16. Norfolk

    GelbsFebruary 16, 2014 10:31:46
    …………………………..Well ask yourself this. If Wenger is such a great and fantastic manager, why would he need money to win a trophy in 8 years, eh? Portsmouth, Liverpool, Spurs, Swansea, WIGAN, Birmingham (against Arsenal) have all won trophies inside 8 years. Why hasn’t Wenger, eh? No further questions, your honour. I rest my case.”

    That is a very very good question.
    I wish I had thought of it.
    When I ask my mates I will of course claim I did 🙂

  17. Thank you and goodnight

    @Rollen
    I don’t get you lot…I call Wenger a cunt and i’m out of order. I call him a genius and i’m out of order.

    Well say what you want, the light side is for me now, I’m a fully fledged AKB from this day forward. I’ve renounced the dark side, I am a reborn AKB and proud.

    WENGER IN!

  18. Ilerioluwa

    The difference between fabregas and the non fabregases was that fabregas would have gotten the wages we put him on at virtually any other club. Many of the rest won’t have gotten the wages they were on at any other club. Because they weren’t too good.(Correct me if I am wrong) Do you see my point.?
    That’s why I said PY wasn’t the problem per se, but the blanket payment of high wages to every moderately talented player in the assumption the player would come good
    I don’t totally blame AW for project youth. I blame us for the way it was (mis)managed

  19. andy1886

    Lol Norfolk, I asked the very same question a few weeks back. I’m still waiting for an answer.

    Maybe they had better managers? (That was a joke btw – time to run for the hills!!).

  20. Keyser

    Ilerioluwa – They were scoring and assisting for Champions League teams in England where wage inflation is rife, it’s by far the most profitable league in the World.

    Look around at players in our league than come back, Bendtner was also doing it at an International level.

    Stop with the pointless exaggerations, look around at what Premiership teams pay their players, they’ve demonstrated no talent at all ? ffs mate, Andy Carroll sold for 35 million in this league, you’re extrapolating from how many players 1,2 ? 3,4 ? How many ?

    What about Vela then ? He had ridiculous talent for his age, what would you have paid him ? He offered less consistency than Bendtner did, struggled to fit in and moved on, was he always a poor player ? Is he now quality ?

  21. Ilerioluwa

    Andy.
    You made my point well. The only way a logical person would offer high wages to young players is if they are naïve enough to believe the palyers would repay that “trust” in them when they come good. That’s laughable, I think

  22. Keyser

    “The trouble is, as has already been pointed out, the wage is irrelevant because if the player does become the success you hope for the richer clubs will ALWAYS offer more than you do. ”

    They weren’t here for one year, and project youth wasn’t going to be something we continued through till the end of time.

    What you’re basically saying is don’t try, forget it, pay them 20k a week, let them move on if otherwise.

    So give up, or wait find another Fabregas, another Van Persie, another Nasri, not to mention try to avoid the Bendtners, or the Denilsons.

    Lol all you’re left with is get everything right or fuck it. Which is basically Ilerioluwa’s point, a ridiculous one.

  23. Ilerioluwa

    The only other way is if you believe that you couldn’t find that level of talent anywhere at lower wages or that specific players are neccesary for the club or you hate upsetting the balance of the club, as wenger seems to believe.

  24. Keyser

    TYAG – Right on breder, tell him about the real world, where Wenger gets 7.5 million a year, while you sit at your computer calling him a cunt, where Bendtner gets Sponsored by Paddy Power for flashing his pants during International games.

    Keep it Real.

  25. Ilerioluwa

    Eyser
    Now u talking nonsense. I never said fab didn’t deserve his wages. I said most of the rest didn’t. Fab was a talent. Obviously everyone wasn’t on fabs level of talent. Was wenger illogical enough to believe that everyone he gave high wages to was on fabs level of talent or would come good like fab.

    EVEN With PROJECT yÓuth, there should have been discrimination among players in a sort of capitalist manner,

  26. Thank you and goodnight

    @Ilerioluwa

    Basically Wenger invented soccer ball, read up on history of soccer ball you will find Wenger was the founding father.
    Plus everything Keyser says is right so leave him alone…..don’t worry keyser I’ve got your back. I’m Luke skywalker to your hans solo……though after a night of vindaloo and beer I sound more like chewbacca in truth.

  27. Thank you and goodnight

    @Keyser

    I no longer call our Lord and saviour a cunt anymore. I’m a born again AKB remember…I am atoning for my sins.

  28. Keyser

    Ilerioluwa – There was descrimnation, Fabregas got more, Van Persie did, Nasri would have.

    Do you understand that this was something to try and counter what others teams were doing, we paid several young players a decent wage, as they progress they get better contracts based on merit.

    Fabregas’s next contract would have been massive, as would have Van Persie’s, Nasri was going to double it, Bendtner unless he scored 20-25 goals and progressed further wouldn’t have got a new contract at a higher wage.

    The thing is it doesn’t matter now, Ozil’s on close to 180k a week and we can desrciminate between players even further, hence why soo many youth players have moved on, but it’s not set in stone either.

    You haven’t bothered to look at the league we actually play in or the situation we’re in, you’ve cited how many players ? So basically Wenger got it right with some, maybe wrong with others, in the end unless you think he should’ve got EVERYTHING right, we’ve finished about where our position should have been.

  29. rollen

    Thank you and goodnight February 16, 2014 11:35:28

    @Rollen
    I don’t get you lot…I call Wenger a cunt and i’m out of order. I call him a genius and i’m out of order.

    learn to read with understanding
    I was just mocking Keysers posts
    also im not a part of any group

  30. Ilerioluwa

    They were scoring and assisting in CL. Really,? How often? And how come we weren’t world beaters then?. The prices paid to them for their potential were too high. That’s my point.
    Now prices paid to certain youngsters may be high if you believe in them, but are you saying we should have had faith in all the players we paid higher wages than their achievements.
    That’s not taking a risk. That’s crazy.

    I don’t think we would have gotten all the project youth players right, keyser.
    That’s why I would have only paid a premiuM for the truly special like fabregas and offered the others far lesser wages.

  31. Keyser

    TYAG – Tell me more about the real world breder, do you toil away in the salt mines while the evil oppressive football gods take home all the glory ?

    Do they force you to sit and watch them run about in shorts satisfying their need to fulfill their spare time, in what is at essence a Children’s game, played by adults, watched by adults like yourself.

  32. Keyser

    Ilerioluwa – I’ve posted stats, you’ve come up with nothing, I’ve tried to tell about what other teams were paying players of a similar age or stature, you’ve ignored it.

    How comes we weren’t world beaters ? Are you serious ? Because even with all these players, other teams were paying more and could spend more. Our wagebill might have been 100 million, we could have structured that how you want, Chelsea’s would still have been 160 million.

    “Now prices paid to certain youngsters may be high if you believe in them, but are you saying we should have had faith in all the players we paid higher wages than their achievements.”

    You asked about descrimination, there was descrimination, we had faith in certain players, some worked out, others didn’t at various wages.

    “That’s why I would have only paid a premiuM for the truly special like fabregas and offered the others far lesser wages.”

    That’s not how it works, and you’re saying this in hindsight.

    You think Tello’s great, where’s Giovanni Dos Santos now ? Is he fulfilling all the faith Barcelona put in him, or was he only paid far less than him based on talent.

    At the end of the day we were forced into a situation where we had to put our faith in potential, and we did pretty well all considered, the fact still remains it was forced, maybe not the idea, but the situation.

    Enough for me, I’ve tried, maybe if you come back with a better argument, I shouldn’t really have hijacked Samsensibles’ debate, you don’t sound like someone who listen’s to reason.

  33. Norfolk

    samsensibleFebruary 16, 2014 11:09:43
    Norfolk so would I. But I’m saying that Project Youth was a necessity which yielded poor results.I want us to spend 100m on Draxler and Cavani in the summer plus another 40m on a world class DM. I’d like us to not give so much of a fuck about the balance sheets for once.”

    I didn’t follow all the discussion if I’m honest.
    Seems to me that project Youth as you call it was both necessary and a good idea handled very poorly.

  34. Jeff

    Goodnight,

    I have never been entertained from a blog as much as reading your comments today. I am still rolling on the floor with laughter. You must be a very funny chap.

  35. Jeff

    So the big dilemma for Wenger is this. Does he put out a weakened side today in order to save the “best” team for Bayern, or does he put out a strong team sensing that our fate in the CL is pretty much sealed anyway and we might as well go all out to win the FA cup as that now seems the easiest path to a trophy this season?

    I think he’ll go for half and half. He won’t put out a very weak team but he won’t put out the strongest one either (if of course we can even agree on what our strongest side is).