Arsenal post impressive figures

Arsenal announced record pre-tax profits of £56 million yesterday and that they have paid off all the debt on their Highbury Square development.

The figures for the year ending May 31, 2010 show pre-tax group profits rose by £10.5 million compared to the previous year.

The results also showed Arsenal’s group turnover increased to £379.9 million, from £313.3 million in 2009, boosted by the income generated from property sales.

The debt related to the Highbury Square development – which once totalled £130 million – has been repaid in full with Arsenal now enjoying the benefits of income from apartment sales.

Profits are slightly down on the football side of the business due to Arsenal having five fewer home games last season and increased wage costs.

Arsenal chief executive Ivan Gazidis said the wage increases had allowed Arsenal to remain competitive on the field.

He said: “We continue to see upward pressure on player wages. A part of that is because we’ve invested fairly aggressively in our young player pool, and we have secured their long-term future with the club.”

Arsenal will continue to pursue their policy of developing players rather than buying big stars, Gazidis said.

He added: “Most of the profit goes back into the playing side, whether into player contracts or transfer fees.

“We do have a policy of building and not buying, and that’s a difficult path to tread sometimes, but as a result of that policy we’re seeing a tremendous number of good young players progressing and developing into the finished article and I think our performance against Spurs on Tuesday night illustrated this.”

A year ago, Arsenal announced pre-tax profits had risen 24% to £45.5 million and this year’s revenue increase has been helped by a £4 million rise in Premier League television income to £51.7 million and a similar increase in Champions League income to £27.3 million.

It is the paying off of the Highbury Square loans that has delighted the Arsenal hierarchy most, however. They were initially forced to extend the bank repayment deadline of April this year to December after the property slump first hit.

Since then the development has prospered and the debt has now been repaid in full.

Manchester United reported pre-tax profits of £48.2 million in January while league champions Chelsea announced a £44.4 million loss in December.