Arsenal announce £47.8m loss after tax for the 2019-20 season in latest financial results… with club incurring £10.4m cost for changes that saw Unai Emery axed, Mikel Arteta hired as well as pre-tax losses of £35m because of Covid-19
- Arsenal insisted their finances had been severely dented by coronavirus
- The overall wage cost finished at £234.5m, but pay cuts helped save £19m
- They also recorded £60.1m raised from selling players, such as Alex Iwobi
- Spend on players came in at £182.2m, including the £72m paid for Nicolas Pepe
Arsenal have revealed their losses have risen to £47.8million in their latest financial results for the 2019-20 season.
The Premier League side confirmed their finances had taken a severe blow due to the outbreak of the coronavirus pandemic, which brought last season to a halt in March 2020 and did not restart until the financial year had concluded.
The north London outfit’s accounts also showed £10.4m had been spent in exceptional costs due to ‘changes to the first team management, coaching and support staff’, including the sacking of Unai Emery in December 2019 and the appointment of Mikel Arteta later that month.
Arsenal have revealed their losses have risen to £47.8million in their latest financial results
The Gunners spent £10.4m on changes to the coaching staff, including the sacking of Unai Emery (right) and the arrival of Mikel Arteta
The pre-tax losses of £35million owing to Covid-19 consisted of a £14m hit on matchday revenue, deferring £34m of broadcasting revenues into the current financial year, and £6m worth of other broadcasting and commercial losses.
The overall wage cost finished at £234.5m, but the 12.5 per cent pay cuts that were taken by Arsenal’s playing staff as well as their executives helped to save the club £19m.
The Gunners also recorded an increase on fees raised from selling players, up from £12.2m to £60.1m, largely due to the £35m sale of Alex Iwobi to Everton and Krystian Bielik’s departure for Championship outfit Derby County.
However, spend on players came in at £182.2m, which included the £72m paid to Lille for Nicolas Pepe, the £27m paid to Saint-Etienne for William Saliba and the £25m acquisition of Kieran Tierney from Celtic.
The overall wage cost came in at £234.5m, with £19m saved due to the 12.5 per cent pay cuts
The Gunners made £60.1m in player sales, with Alex Iwobi and Krystian Bielik being sold
The club also reported a rise in commercial revenue from £110.9m to £142.3m.
The 55 members of staff who were made redundant, as well as the money made from Project Restart and the FA Cup win, were not included as they took place in the ongoing financial year.
‘Pre-tax losses of £35 million were directly attributable to COVID-19. The impacts of the pandemic have extended into season 2020/21 and are ongoing,’ a club statement read.
‘Matches continue to be played without fan attendance and consequently the club is operating without one of its key revenue streams.
The Gunners spent £182.2m, most notably on the likes of Nicolas Pepe and Kieran Tierney
‘Throughout the pandemic, the Group has moved rapidly in making the decisions required to proactively manage and mitigate risk across all areas of its operations and, where possible, to provide appropriate support to its community and stakeholders.
‘Since the year end the Group has refinanced its stadium finance bonds and undertaken a range of cost cutting measures.
‘These steps will ensure the club is well placed to respond once the situation starts to improve.
‘The financial challenge remains significant, but the club continues to have options available to it alongside the unwavering support and commitment of its ownership, Kroenke Sports & Entertainment.’
The club maintained it retains the ‘unwavering support’ of Kroenke Sports & Entertainment
