Chief executive Ivan Gazidis is confident Arsenal's
commercial future is bright after a "very solid" set of results,
despite a fall in turnover and profit.
The
Gunners, who have American billionaire Stan Kroenke as their
majority shareholder, reported group turnover for the year ended
May 31, 2011 as £255.7million, down from £379.9million in 2010,
while profit before take was also reduced from £56million to
£14.8million.
However, factors such as reduced income from property sales at
the Highbury redevelopment and increase of player wages have played
their part, with the high-profile summer sales of captain Cesc
Fabregas and Samir Nasri not taken into account in this period.
The 60,000-seater Emirates Stadium, though, continues to more
than pay its way as continued improved matchday income helped to
reduce the group's overall debt down from £135.6million to
£97.8million, much of which is secured on low, fixed-interest rate
bonds paid back over a long period against the cost of relocation
in 2006.
Speaking to the club's official website, www.arsenal.com,
Gazidis said: "In terms of our financial base and in terms of our
platform, we are very secure - it's a good set of results
again.
"We haven't seen the same kind of profits from the property side
that we have seen in the past but that was entirely to be expected.
Our property business is debt-free so any new sales of property do
accumulate cash, which is very positive for the future.
"We didn't have the same kind of profit from player sales that
we had in the previous season and that explains the slight
reduction in profit, but this is a very solid, very healthy set of
results and it gives us a good platform to move forward from."
Gunners boss Arsene Wenger celebrated his 15th anniversary in
charge today, and has found himself under the spotlight more than
ever this season following a terrible opening few weeks which saw
them humiliated 8-2 at Manchester United before the last
international break.
Despite Arsenal's robust performance off the pitch, Gazidis
accepts what happens on it will always be what comes first for the
fans, who have not seen their team lift a trophy since the 2005 FA
Cup.
"I think it's important to start by saying that what our fans
care about is what happens on the pitch and how their club
represents them," he said.
"The reason we even get into talking about the financial results
is only because the financial base of the club is important for
creating those two things. That's what this is all about."
With Arsenal's additional income from the Highbury Square
redevelopment now coming towards a natural conclusion, the club
will continue to look for improving external revenue streams.
This summer saw a break from tradition as the Gunners headed out
on an Asian tour for matches in Malaysia and Kuala Lumpur.
Gazidis feels the Arsenal brand will continue to develop as the
north London club look to keep pace with the likes of Manchester
United in terms of sponsorship deals.
He said: "It [commercial] will drive the club forward so as the
property money that we have coming in over the next few years
begins to come to the end of its natural life we will have really
strong commercial revenue streams that come in year after year that
can put us right at the top of the game."
As UEFA prepare to implement Financial Fair Play, Gazidis
believes Arsenal's self-sustaining model has given Arsenal "a great
platform for success".
He added: "The way the club is run is something that we know our
fans are very proud of, but they look at the world and they see
that player costs are accelerating upwards and they wonder if we
can compete.
"I believe we can, I believe we have a really good financial
basis to do that, and I also think the football world is moving in
our direction.
"We represent the future of the world and all the other clubs
are trying to get towards a sustaining model like Arsenal already
has.
"We feel we are well set for developments that are going to
happen in the game over the next few years.
Arsenal's accounts also revealed a significant reserve of 'cash
and short-term deposits' at some £160m.
While Gazidis stressed that money was "working capital" going
forwards, the chief executive maintained funds were always
available to the manager should he wish to use them.
"Certainly we do have money that would be available to spend in
the transfer market as Arsene decides is necessary to supplement
the squad," Gazidis said.
"Again it's a healthy cash position to be in and with the
ability to make moves in the player market if we want to."