Arsenal’s bumper wage bill triggers £13m jump in football costs
Arsenal’s new sponsorship deal with Puma contributed to a £10m increase in turnover in the six months ended 30 November 2014.
Total turnover rose 7.9 per cent from £137.9m to £148.8m thanks to “strong growth in commercial activity” which Arsenal said enabled it to spend more on players and wages.
The club says increased cash in its coffers triggered a record level of expenditure on player registrations of £93.7m, but added that it expects to fall in line with Uefa and Premier League Financial Fair Play (FFP) regulation. The club still has £83.8m in liabilities for player acquisitions, due to be paid in instalments.
Chairman Sir Chips Keswick said "our new signings, together with certain player contracts" were the primary cause of a £13m rise in operating costs at Arsenal's football business to £126.2m.
Keswick commented:
Our commitment to investment in the squad was evidenced by a record level of expenditure on players joining during the summer with the acquisitions of Calum Chambers, Mathieu Debuchy, David Ospina, Alexis Sanchez and Danny Welbeck. The recent acquisition of defender Gabriel from Villarreal will take our total transfer expenditure for the year to well in excess of £100 million. This substantial investment has inevitably led to increased amortisation and wage costs in our profit and loss account but, crucially, this remains at a level which is consistent with our principle of affordability and which is financially sustainable in accordance with the requirements of the applicable regulatory regimes.On the field, the team has produced some strong results and the squad is looking fit and better balanced. However, we need to find our best form on a more consistent basis as we approach, what I hope will be, an exciting end to the season.