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Arsenal announce £11.1m pre-tax profits despite record summer spending spree

 

Toby Davis
Friday 27 February 2015 18:13 GMT
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A view of the Emirates Stadium, home of Arsenal
A view of the Emirates Stadium, home of Arsenal (Getty Images)

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Arsenal remain a beacon of financial sobriety in the Premier League with an overall profit before tax of 11.1 million pounds in 2014 despite a record transfer outlay of more than 90 million pounds.

The club embarked on an unprecedented spending spree on players in the previous 12 months including the high-profile arrival of Chile forward Alexis Sanchez among a number of additions to the squad in the close season.

Yet their financial results for the six months ending Nov. 30 last year, published on Friday, show turnover from football rose to 148.5 million from 135.9 million in 2013, while cash reserves jumped to 138.8 million, up 18.2 million.

"Our commitment to investment in the squad was evidenced by a record level of expenditure on players joining the club," chairman Chips Keswick said in a statement.

"Crucially, this investment remains at a level which is consistent with our principle of affordability and which is financially sustainable in accordance with the applicable regulatory regimes."

Arsenal, whose financial model contrasts with many of their Premier League rivals who operate with large debts, said the rise in turnover was accompanied by "strong growth in commercial activity driven by the new kit partnership with PUMA".

The news that Arsenal are sitting on huge cash reserves, however, is likely to prompt renewed calls from fans for the club to invest further in the playing squad.

Under manager Arsene Wenger, Arsenal have a reputation for being frugal in the transfer market compared to the teams they are competing with at the top of the league.

Manchester United, for example, invested about 150 million pounds on players in the close season in an effort to end their European exile.

REUTERS

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