Arsenal have announced a whopping financial loss for the 2020/21 season, which tops £100million. It was the third consecutive year which saw them lose financially, after 16 consecutive years of consecutive ended in 2018.
The most striking reduction in revenue came as a result of match-day income, which fell from £75m to £4m, broadly as a result of the Covid pandemic.
Indeed, only two matches were played with fans at the Emirates all campaign, but the eye-watering £244m wage bill will have done the overall financial picture no favours.
Income from player sales fell dramatically from £64m to £14m, leading to a significant financial hit overall, despite broadcast revenue increasing by over £60m.
The £107.3m hit signifies the Gunners’ third successive year in the red, with relations between fans and majority shareholder Stan Kroenke still strained from years of mistrust.
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Arsenal’s owners, KSE UK Inc., are effectively underwriting the whole thing.
Gunners fans may be troubled to learn, however, that the interest terms upon which the loans from KSE UK Inc to Arsenal have been agreed are, according to The Athletic, still unclear.
Kroenke has felt the wrath of Arsenal’s supporters over the years due to their gradual Premier League decline, and the trust between both sides hit a low point during last year’s ill-fated European Super League project, which the Gunners were originally a part of.
Arsenal’s accounts state: “The group is reliant on its ultimate parent undertaking, KSE UK Inc., for its continued financial support.
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“The group has received confirmation from KSE UK Inc. that sufficient funds will be provided to finance the business for a period of at least 12 months from the date of this report.
“The directors have therefore continued to adopt the going concern basis in preparing the annual financial statements.
“The group is monitoring certain ongoing matters relating to the closure of the European Super League project; if any additional costs arise as a consequence, these additional costs would be fully recharged to the parent entity, KSE UK Inc.”
The concerning financial results may be offset slightly by Arsenal’s surge up the table this campaign.
On-field matters finally appear to be clicking under boss Mikel Arteta, and they remain undefeated in the league since New Year’s Day.
Last time out, they conjured up a last-minute winner to squeeze past European rivals Wolves at the Emirates.
Occupying sixth spot in the table may not get too many hearts racing, but with three games in hand on both Manchester United and West Ham above them, clawing back a meagre two-point deficit seems very achievable indeed.