Morning:
8°c
Arsene Wenger today hinted he will not spend substantial money in January despite Arsenal announcing record annual profits of £35.2million.
The club released their annual financial figures for the year ending 31 May 2009 and revealed a net profit increase of £6.5m on the previous 12-month period, which will almost certainly mean Wenger will have funds available if he wants to strengthen his squad in the January transfer window.
But the 59-year-old stressed how vital it is for the Gunners to continue as a self-sufficient club and believes disproportionate spending is unacceptable in the current economic climate.
He said: "I am encouraged by the fact the financial results are good because I tried on my side to contribute to that.
"You want to work in a company that has a healthy financial situation and at the moment that is not obvious for everybody. I am quite proud I work in a company with a tight financial situation.
"The sporting side is the most important and the financial situation is a requested situation but it is not good enough that you are completely happy to just do well on the pitch.
"I have always worked in clubs that make money and I would not feel that I would do my job well if we lost money at the end of the season, never, no matter what happens on the sporting side, because you put the club in trouble.
"That's not a way that can be accepted from any manager, in my opinion."
Turnover including property sales increased to £313.3m but only 445 of the 655 apartments in Highbury Square, the housing development built on the club's former ground designed to help pay for the move to Emirates Stadium, have been sold because of the credit crunch.
This figure includes this morning's announcement that London and Stamford Property Ltd have bought a block of apartments, predominantly in the old North Stand, for £41.4m.
Although the record profits are a boost, Arsenal will not complete the repayments of a £133.5m bank loan by next April as originally intended.
The club still have £47m outstanding and have extended the loan until December 2010, although they insist even if this debt is not serviced by then, no money will be taken from Wenger's transfer fund.
Furthermore, the wage bill rose by £2.7m to £104m but non-executive chairman Peter Hill-Wood said: "Our two key acquisitions this year, Andrey Arshavin and Thomas Vermaelen, have proved very successful and Arsene has the resources to bring more players in, if he believes doing so will add to the quality which we already have in the squad."
Chief executive Gazidis said: "Clearly, the club already has a first class stadium, an excellent world-wide reputation and outstanding core support.
"Football is a hugely competitive and fast moving business and we must ensure that Arsenal is not just keeping pace but setting the pace, both on and off the field.
"The club is superbly positioned for the future and I am tremendously excited about the opportunities we have ahead of us."
Arsenal's run to the Champions League and FA Cup semi-finals last season principally contributed to a match day revenue of £100.1m - up £5.5m from 2008.
Wenger contributed to the overall figures with around £14m profit in transfers following the sale of Kolo Toure and Emmanuel Adebayor to Manchester City.
Hill-Wood added: "The Group's profits have now risen in each of the three years in which Emirates Stadium has been our home.
"This is excellent news although I should stress that making and reporting profits is not in itself the primary objective for the directors.
"First and foremost we are supporters of this great football club and, as such, our main goal will always be the achievement of success on the field."
Reader views (21)
why do spurs want to build a bigger ground when they dont sellout white hart lane only one full house this season against man. u.big club ha ha
- Dav The Gooner, basildon essex, 29/09/2009 13:24
Report abuse
Mark - Strange comments from a supporter of team who are light years behind Arsenal. Maybe you appear happy with an archaic 36,000 capacity stadium, never having won a Premiership title & never having even competed in the Champions League in your history. Financially, Tottenham's plight will be revealed over the next few seasons, highlighting the poor chairmanship of the club by Daniel Levy & the debts thereby incurred. Tonight we will be playing on the Champions League, while Tottenham fans will be sitting at home contemplating another mouth watering Carling Cup run. As for being above us, so were Hull at the same time last year! Having played 4 of our first 6 games away from home & with a home match against Bolton in hand, I have no doubt we will finish, once again above Tottenham, although as an Arsenal fan I am more concerned with improving our league position & going one step further than last season in the Champions League. With Harry having bought heavily to restore you to a probable 5th or 6th place in the Premiership, already achieved previously by the excellent Martin Jol, before Levy messed up big time. Just beware, have a look at the financial mess left at Portsmouth, Southampton, West Ham & Bournemouth. Even you are capable of working out the common denominator.
- Rob Gooner, North London, 29/09/2009 08:36
Report abuse
Arsenal are a sensible club with a righteous ethos who for the last 10 years have provided excellent entertainment to Gooners and neutrals alike. Only a tiny fraction of clubs ever win anything, so let's not get too grumpy you can't have it all.
- Vic Gibbons, Brussels, Belgium, 28/09/2009 19:49
Report abuse
C'EST LA MANIÈRE FRANÇAISE. (magasin d'arme) For the rest of us it is the french way to stand and fight after the war is over. Why buy new guns when you still have not fired the old ones yet!
- Colin Stevens, USA, 28/09/2009 17:43
Report abuse
@Mark, St. Albans
Let's see where the spuds are at once they've broken ground on their Emirates-a-like stadium. Arsenal's financial performance is all the more commendable having built a state-of-the-art 60,000 seat stadium while continuing to put a competitive team on the field. 7 games into the season seems a little early to be quite so smug, wouldn't you say? You're a long way from being in Europe yet, just as you were a long way from being relegated at this time last year.
- Speed Racer, Tokyo, Japan, 28/09/2009 17:09
Report abuse
From my understanding part of the go-ahead process for the new stadium was based on the premise that affordable housing would be made available for the local community at Highbury Square - another smokescreen just like the comment "our main goal will always be the achievement of success on the field."
- Mark, Essex, 28/09/2009 17:07
Report abuse
Here we go again Spurs well run club and one fizzy pop cup in 20 years, last won the league in black and white.
- Paul, Ealing, 28/09/2009 17:06
Report abuse
No excuse not to spend now at Christmas if we are off the pace. No excuses anymore for Mr Wenger if we fail again after Christmas.
- Harry Jones, Barnet, 28/09/2009 16:44
Report abuse
Rob Gooner,
If you want to look at a club that has been run in a profitable manner for years with no discernable debt then look up the table at spurs.
Maybe arsenal will have a stand at this years Grand Designs exibition to show people what they've been concentrating on over the last five years.
- Mark, St Albans, 28/09/2009 16:35
Report abuse
What about the empty seats?
- Steve, England, 28/09/2009 16:07
Report abuse
Arsenal are the epitome of a club being run as a prudent, sustainable business. You have to admire the board's resolve in sticking to a long-term plan to protect the club's on-field and off-field viability. You can't help but feel the likes of Chelsea, Man City and Liverpool will eventually have to pay the price for the overborrowing and "investment" from their ownership. It's hard to see Arsenal being in anything other than a robustly healthy financial state at that point. Take a look at Leeds if you want a prime example of the caviar today, soup tomorrow approach.
Well done Arsenal for sticking to your guns. It'll be worth it in the end.
- Speed Racer, Tokyo, Japan, 28/09/2009 14:40
Report abuse
Sold a few flats but from Emirates to Anywhere they still aint won no silverware
And I've never heard of the old north stand but do recall the north bank
- Paul, Ealing, 28/09/2009 14:34
Report abuse
What about all the empty seats at the ground?
- Steve, England, 28/09/2009 14:30
Report abuse
Its funny I always thought Arsenal were a football club first and a business second. Seems they make lots of money for the board and shareholders etc but dont deliver the trophies the fans, who pay their money each week, require. When watching the likes of Bentdner, Song, Eboue, Ramsay, Denilson etc I can see why.
- Mr. Honest, essex uk, 28/09/2009 14:23
Report abuse
Congratulations Arsenal! A job well done. I still think Arsene Wenger has been too miserly with his acquisition strategy. He should now go out and buy a quality player in the January window
- John, South Africa, 28/09/2009 14:16
Report abuse
What's the point in making £35m per annum if the club is not investing in players adequately? The only people benefiting from this announcement are the board and the stingy shareholders who refuse to invest in the team.
- Nk, Hemel Hempstead, 28/09/2009 14:10
Report abuse
arsenal should be in the next series of location,location,location..investing in property and not the team,mind you with the amazing AW in charge who knows what they can win for the first time in 5 seasons.
wasn`t it a few months ago here that some gooners were calling for the board to wise up and spend and even wanting Wengers head???
Many a club are run wisely not just the gooners.
- Jack, acton, 28/09/2009 13:47
Report abuse
These figures show that Arsenal Football Club are on a sound financial footing and that in the near future with the foundations that are being built Arsenal Football Club will be on a solid base to move onwards and upwards,unlike many premiership clubs who are hugely in debt.Wenger has and is showing that clubs dont have to go out and spend 20-30 million on players,with the youth that Arsenal have got coming through the ranks more millions will be saved in the future.Both on and off the pitch Arsenal are a class act.
- Jim Ex Pat,Islington N1, thailand, 28/09/2009 13:04
Report abuse
SO , THE ar5ena1 have moved into the property market ? makes sense really , its more successful than the team...COYS.
- Muzzi, london, 28/09/2009 12:29
Report abuse
What a pleasure to see such a correctly run & profitable club. Well done to the club, its board, employees & the magnificent Arsene Wenger.
- Rob Gooner, North London, 28/09/2009 12:22
Report abuse
it doesn't matter what money you make if you don't sign the players to win anything!
- Gareth, Hackney, 28/09/2009 12:11
Report abuse
