Sep
24
Arsenal financial results press conference info
Filed Under Go To Topic: Arsenal, Premier League
Snippets from today's press conference to announce the financial results - with thanks to Ben Dimech.
Statements:
Our match day revenue figures don’t include catering revenue. Because we’ve got unique contracts with Delaware North and Scottish & Newcastle, we show the profit figures and not revenue. If we had revenue figures instead, like Man United, matchday revenue for 2006/07 would be £102m
Retail figures were hampered as the six weeks in July and June 2006 were disrupted due to the move. These are the busiest six weeks in the year.
2009/10 accounts will be the last to have property figures.
The proceeds from the sale of Drayton Park are included in property.
The proportion of football turnover from matchdays has gone from 33% to 51%.
The club conducted 15 tours a day with 35-40 guests per tour.
The debt on the stadium is now £255m.
The term of the stadium debt is 25 years at 5.3% apr. Repayments are fixed at £18m p.a. This exceptionally low rate of interest is only possible because we’re the only club in the world with an investment rating.
The exceptional cost item in the accounts refers to the refinancing of the loan.
£177m total football turnover is closer to £190m with catering.
Arsené Wenger committed to signing a contract back in June 2007 during a dinner with Danny Fizsman and Peter Hill-Wood. The only thing not provisionally decided was the term of the contract.
Keith Edelman is confident that Arsenal TV will be profitable despite other similarly big football club channels all making a loss.
The club had a pool of 800 stewards before the move but that’s since gone down so they need to build this number up. Highbury required 400 stewards and the new stadium requires 750.
Answers from questions asked:
No decision has been made yet on what will happen to Highbury Square profits.
Lock down agreement will go way beyond the initially agreed date of April 2008. Therefore the date itself is irrelevant and was set as a message.
When Keith Edelman showed Arsené Wenger the financial results, Arsené’s only comment was “tell the press that we’re poor so I can buy players without paying too much!”
If there ever were to be a director of football, Arsené Wenger would tell him what to do and the board would back Arsené on that.
Peter Hill-Wood believes the modern trend of player wages being so high will reverse slightly over the next few years.
One of the new owners asked Keith Edelman how the club manage to pay the players such high wages.
At 25% ownership, Usmanov can request to change the share structure of the club. He can also call an EGM but the last one had 20 people and lasted 30 minutes.
Peter Hill-Wood thinks Usmanov hasn’t contacted Fizsman about selling shares to him. Quote: “I believe it’s very unlikely such contact has been made and I’d strongly advise him against it!”
Because of the agreement we have with Islington council, the club are only allowed six non-football events per year so concerts are not likely.
Random stadium facts and figures:
120 CCTV cameras in the stadium
Non-slip rubber floor is in the home dressing room only (heh)
Hydrotherapy pool is set at 34°C but Arsené will put the temperature up to 40°C during the winter months
The home dressing room is in the shape of a horseshoe. This is because Arsené Wenger studied Feng Shui when he managed Grampus Eight and believes corners promote negativity
The home dressing room has an acoustically modified ceiling so Arsené Wenger doesn’t have to shout to be heard
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Posted by arseblog | Permalink | Email to a Friend | 14 Comments
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Comments
great set of accounts and if ever there was evidence that we don't need Usmanov and his dodgey money at Arsenal then this mornings news and comments from the board prove this.
hehe....thats a instant classic Cyburton!
and the away dreesing room is supposed to be 'L' shaped which is supposed to make opposition team talks tougher!
km1980: The profit from the Highbury development will be around 100 mill.
If we have 70 mill in cash now + 100 mill from Highbury + 50 mill in profit each year, then Arsene can buy players for 320 mill in the next 3 years.
OR we could pay off the stadium in the period and still have money for transfers :P
km1980 as Norway Gooner says about 100m from Highbury plus theres still monies to come from AG related projects undertaken by Wilson Connolly and Newlon Housing. Also the Queensland Rd re submissions will have a profit element. I conservatively estimate more profit between 30m and 50m here.
I wonder how a takeover by Usmanov or a leveraged buyout by Kroenke would affect our investment rating and how that could affect the bonds. Could the rate on the bonds change if our investment rating dropped to "junk" status.
I also read that the reason we have an investment rating is because Fiszman took out a special type of investment insurance to cover the bond issue.
Anyway, that would be interesting to get more info on if anyone has an answer.
Thanks for the info Norway Gooner and JP. If we can achieve those profit figures that will be absolutely fantastic.
Norway Gooner, I can see most of the money being ploughed straight into the stadium debt as Wenger has shown he will continue to be prudent even when cash has been available. With the debt qouted in the article above at £255m at the moment if we were to even pay half of it in 3-4 years that would make a hell of a difference in terms of interest payments alone. I dont think any of us realised that we could potentially pay off this debt so quick. Personally I was fully prepared for up to 10 years of relative financial hardship. These figures really are great news.
14 Responses to “Arsenal financial results press conference info”
"This is because Arsené Wenger studied Feng Shui when he managed Grampus Eight and believes corners promote negativity"
That will explain our poor record in both taking and defending corners prior to this season then ;-)
Have the club actually revealed the cash ammounts generated by property. If anyone knows this figure it would be good to know it, as I suppose we should look at the figures without this cash to see how rich we are based on football related items only.
Even so, this is a seriously impressive set of figures and proves the point that the current board are running things brilliantly. We should get 100% behind them and support them against any move by Usmanov, Dein and Red and Shite.