LONDON: Premier League giants Arsenal Football Club have announced their financial results for the 2017-18 year that ended on 31 May 2018. Interestingly, while the club has reported an increase in its profits after tax, it also saw a decrease in its overall revenues.
In 2017-18, the North London-based club’s failure to qualify for the UEFA Champions League meant that it had to compete in the second-tier Europa League. This had an adverse impact on its revenues, which stood at 388.2 million pounds ($510 million) vis-à-vis 422.8 million pounds ($555 million) in 2016-17.
However, the club managed to stay afloat and gain more profits courtesy selling number of big names such as Theo Walcott, Olivier Giroud, Francis Coquelin, Alexis Sanchez and Alex Oxlade-Chamberlain. The total profit on sale of player registrations in 2018 was £120 million ($157.5 million), which is nearly 20 times greater than in 2017 which was £6.8 million ($8.9 million).
Operating profits were also impacted by continued investment in player wages, which meant that total staff costs, excluding exceptional costs, grew from nearly 200 million pounds ($262 million) in 2017 to 223.3 million pounds ($293 million).
The exceptional costs incurred of £17.2 million ($22.6 million) were attributable to the changes in the first-team management, coaching and support personnel.
The profits after tax were 56.5 million pounds ($74.1 million) in 2018 vis-à-vis 35.3 million pounds ($46.3 million) in 2016-17.
Commenting on the financial results, Arsenal FC chairman Chips Keswick said: “Player trading has meant that overall Arsenal has had another profitable year, but we are very aware of the financial pressure which Europa League football places on the club. A return to the Champions League is a clear priority which everyone at the club is committed to delivering.”
