Arsenal has no financial problems even though they still owe other clubs over £117m in transfer instalments.
The Gunners recently released their financial statement, which sees them make show losses, even though it is not as bad as in previous campaigns.
Mikel Arteta’s men are succeeding on the pitch and the return of fans to the stadiums means the club is recovering from its covid-era struggles.
Among the money they owe to other clubs, £115m will be paid in this financial year, which should be hard on them and probably affect their finances.
However, the financial expert Dr Dan Plumley insists it will not affect their transfer plans. He explains to Football Insider:
“Looking at what we can see, it appears that £115m of that £188m is due within a year, which is quite a high figure.
“But when we look at the other side of the coin with current assets, they have got debtors worth £726m due within a year, which is the amount owed from the group undertakings.
“So, that would suggest that they can go to your current accounts, which is cash, debtors and stock, to cover that transaction.”
Just Arsenal Opinion
We are one of the biggest clubs in the world and are in a good financial position at the moment, which should make it easy for us to keep spending money.
However, we must spend it on the right players and not just flops as we have done with Nicolas Pepe and other poorly acquired players at the club.
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Hmmm, there’s some interesting items in the very small snapshot of the P/L account on the AFC web site – and some interesting wording in the explanations…
“Amortisation and impairment of player registrations (127.0) (117.4)”
There are some big numbers there – a £127m loss for “player registrations”, presumably transfers in/out. A clear-out period, sure, so we live with that if that’s what those words mean. £117m loss the year before. That’s a quarter of a billion loss in 2 years on transfers. Ouch. Barcelona territory.
“Net interest costs (excluding exceptional items) (5.2) (7.6)”
What are the exceptional items? We’ll have to wait for the full accounts to hit Cos House to tell, but does it exclude the stadium loan? And the loan to purchase all the shares in 2018? If memory serves, the latter was a £603m loan – another ouch.
As ever, believe none of what you hear (or read) and half of what you see. The devil will be in the detail, not the carefully crafted wording on the web site.