An analysis published by the Arsenal Supporters’ Trust, a group of small shareholders, has indicated that Arsene Wenger has £50 million to spend on transfers and player wages, but that the Gunners could lose out on £45 million if they fail to finish in the top four this season.
Arsenal will hold a board meeting on Thursday and will reveal their half-yearly accounts by the end of the month. In the meantime, the Arsenal Supporters’ Trust has created a detailed report of the club’s current financial position and also posed questions to the board ahead of the important meeting later in the week.
According to the AST, Arsenal’s transfer profit is around £55m. In their estimation, £50 million is available for Arsene Wenger to spend on transfer fees and wages. A problem will arise if we fail to qualify for next season’s Champions League. If we do finish outside of the top four for the first time under Wenger, the cost will be about £45m.
While we our budget will not be ruined by not qualifying for the Champions League, it would take a signficant hit. As Peter Hill-Wood said, finishing below fourth would not be a financial disaster for Arsenal. But, presumably on the football side, Arsene Wenger said it would be a disaster for the club.
The AST also raised an interesting concern over the efficiency of the player wages. Our current wage bill stands at £130m- fourth highest in the Premier League. Conversely, Spurs spend 40% less on wages and appear to have a superior squad. The main problem, from my point of view (and the AST’s), is the propensity to overpay fringe players. When a player cannot cope at the Emirates Stadium, it is hard to sell him because no other clubs are willing to pay his massive wages. This seems to be the case with several players currently on loan, such as Nicklas Bendtner, Denilson, and Carlos Vela.
We may learn more when the official half-yearly report is released and analysed, but the Arsenal Supporters’ Trust has done a good job of shedding light on the financial aspects of our club. Overall, it appears that the club is healthy, though much of the money is locked up in payments for the stadium and real estate. There is cash allocated for Arsene Wenger to spend, but it is unclear whether the money is being held as an insurance policy for the £45m our club could lose if we don’t qualify for the Champions League.
Some information has been supplied, but plenty of questions still remain.
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