Arsenal Finances 2023/24

'A' Bomb In Wardour Street

Arsenal’s 2023/24 financial results cover a season when the club led the Premier League table for a long time, before eventually finishing in second place behind Manchester City to give the Gunners’ fans a sense of déjà vu.

Importantly, after an absence of six years, they returned to the lucrative Champions League, where they reached the quarter-finals before going out to Bayern Munich. However, they were eliminated in the early stages of both domestic cups.

Profit/(Loss) 2023/24

Arsenal’s pre-tax loss significantly improved from £52m to £18m, as (football) revenue shot up £149m (32%) from £465m to a new club record £614m, while profit from player sales also greatly increased from £11m to £51m.

However, this was partially offset by substantial growth in operating expenses, which rose £142m (27%) from £521m to £663m, while net interest payable also increased from £6m to £18m.

The club was honest enough to point out that the underlying loss only reduced from £34m to £18m, as the previous year was adversely impacted by an exceptional £18m impairment that was booked to write-down the value of certain player registrations.

All three of Arsenal’s main revenue streams saw good growth, achieving new club highs. The largest increase came in broadcasting, which rose £71m (37%) from £191m to £262m, driven by more success on the pitch.

This factor also helped match day rise £29m (28%) from £103m to £132m, while the new commercial strategy led to a £49m (29%) increase from £169m to £218m.

Player loans income was more or less the same level as the previous year at £1.4m.

Further significant investment in the squad led to large increases in both wages, up £93m (40%) from £235m to £328m, and player amortisation, up £32m (23%) from £139m to £171m.

In addition, there was significant growth in other operating expenses, which shot up £34m (31%) from £112m to £146m.

Net interest payable tripled from £6m to £18m, which essentially represented the amount of the overall loss, as the club mad £1m profit before interest and tax. This was due to a combination of more borrowings and higher interest rates, as well as a notional booking on outstanding transfer payables.

Although it’s rarely good news to lose money, Arsenal’s £18m loss is actually not too bad for the Premier League, where half of the clubs lost more than £50m in 2022/23. It was also much better than Manchester United’s hefty £131m loss last season.

On the other hand, two clubs have already published excellent profits for 2023/24, namely Manchester City £74m and West Ham £57m.