Arsenal wage bill tops £100m barrier

The club blamed the hike on new pay deals for manager Arsene Wenger and stars such as Cesc Fabregas and stressed they can afford it after announcing record turnover of £207.7m for last year.

Compared to free-spending rivals such as Chelsea, Arsenal have traditionally tried to keep a lid on players' wages but their total outlay is now £101.3m.

Chairman Peter Hill-Wood said: "Income from the new Premier League TV deals has inevitably created a significant upward pressure on both transfer prices and players' wage expectations.

"During the last year, we have improved and extended the contract terms of a large number of first-team players and, of course, Arsene Wenger himself. The wage/turnover ratio for the year has, however, remained broadly stable at 48.8 per cent."

Arsenal's financial results for the year ending 31 May 2008 underline their status among the wealthiest clubs in the world and reflect increased broadcast revenues and matchday cash generated from Emirates Stadium.

Their £207.7m turnover for the football business — part of an overall turnover including investments of £223m — puts them ahead of Chelsea (£190.5m) and behind only United in the Premier League rich list.

The Gunners also made a pre-tax profit of £36.7m, but Hill-Wood gave no indication the club's fans would feel the benefit of the surplus cash through price reductions. The old Etonian did, however, stress that money would be available to Wenger in the January transfer window.

Hill-Wood added: "We are committed to operating the club as a business which is financially self-sustaining.

"Over the last two seasons Emirates Stadium has taken our football revenues to a new level, but we cannot be complacent."

The club's net debt has grown significantly over the past 12 months from £268.2m to £318.1m due to a "reduced level of property activity" but Hill-Wood stressed sales of flats at former home Highbury over the next year would cut that figure.

Arsenal also confirmed that American investor Stanley Kroenke, who owns a 12.4 per cent stake, has joined the board as a non-executive director.

Wenger, meanwhile, is confident Tomas Rosicky will return to action before Christmas.

The Czech, 27, suffered a "rare" hamstring problem in January and Wenger said: "He is not close to playing again but the recovery process is slower than expected.

"He had a re-attached tendon that was loose in his hamstring. But I am optimistic he will be fit before Christmas."