Arsenal post record revenues as pre-tax loss narrows thanks to Champions League broadcast and matchday revenues 

Wage bill reaches record high - but still healthy at 53% ratio to total revenues

Arsenal have recorded record revenues of £616.6m in the 2023-24 season, writes Lukasz Baczek for the Gooner Fanzine

The club has improved its performance in every possible area of ??the business, with a 32% year-on-year increase thanks to the club’s return to the Champions League and a strong Premier League performance.

The pre-tax loss has narrowed from £52.1m to £17.7m, despite initial forecasts of a small profit.

They have failed to turn a profit since Arsene Wenger’s departure in 2018, which was £70m.

Matchday revenues have increased from £102.6m per year to £131.7m per year, driven by the Champions League.

Broadcasting revenues were £262.3m, mainly due to higher prize money from UEFA, Arsenal hosted opponents in 25 matches at Emirates Stadium.

Commercial revenues (£218.3m) also saw a significant increase of almost £50m.

This was driven by the renewal of the main sponsorship agreement with Emirates, the extension of the partnership with Sobha Realty and the acquisition/renewal of second-tier partnerships.

Interestingly, the newly announced £60m-a-year agreement with Emirates came into effect from the 2023-24 season, although initial reports indicated only the current season.

The club’s new commercial strategy, according to Juliet Slot, involves doubling revenue from second-tier sponsors.

The total profit on sale of player registrations was £51.1m and player loans amounted to £1.4m.

However, this is still significantly less than other top clubs in Europe.

Wage bills also reached a record high (327.8 million), but are still at a healthy 53% ratio to total revenues.

This was due to investment in new players for the men’s and women’s teams, bonuses linked to sporting performance, but also a significant increase in the number of employees at the club - increasing from 723 to 826, mainly in the administrative and commercial areas.

Directors’ remuneration totalled £2.44m, with the highest paid director receiving £2m, believed to be the former CEO Vinai Venkatesham.

Arsenal Women

The role of women's football will continue to grow, and the total revenues of the top 15 clubs in Europe have already exceeded €100 million.

Summary

Arsenal are in good financial shape in terms of the PSR and SCC (UEFA) regulations, although the club still relies on the KSE for financial support in terms of transfer activity and working capital.

Summer spending

There will be significant transfer spending in the summer, in the region of £150m-£200m, while still remaining within the limits of these indicators.

Caveats

The club must continue to play in the Champions League while increasing its commercial revenues, which are the biggest area of ??improvement compared to the Big Six clubs.

The future

The desired sporting success would undoubtedly be a driving force for even greater monetization of the Arsenal brand.

As recent months have shown, the development of academy players is very important, as they can bring real sporting quality, which can translate into reduced transfer spending, but also be a potential source of income.