Club announcement

Financial results for 2017/18

Emirates Stadium

The club has now filed its accounts for the financial year ended May 31, 2018.

The Arsenal Group’s profit for the 2017/18 year after taxation was £56.5 million (2017 - £35.3 million).

The result for the year can be broken down into the following key components:

 

2018
£m

2017
£m

 

 

 

Operating profit before exceptional costs and player trading

75.4

137.5

Exceptional costs

(17.2)

-

Amortisation and impairment of player registrations

(91.8)

(77.1)

Sale of player registrations / Loan of players

122.3

13.7

Property trading profits

5.3

0.2

Net interest costs

(8.8)

(14.7)

Other

(15.0)

(15.0)

 

 

 

Profit before tax

70.2

44.6

Football revenue for the year was £388.2 million (2017 - £422.8 million), with the decrease being mainly attributable to the club’s participation in the Europa League, rather than the more lucrative Champions League. Operating profits were also impacted by continued investment in player wages, which meant that total staff costs, excluding exceptional costs, grew to £223.3 million (2017 - £199.4 million).

The exceptional costs incurred of £17.2 million were attributable to the changes in the first-team management, coaching and support personnel.

After a number of years of fairly low profits from player sales there was a significantly higher level of activity during the year with a rationalisation of the first-team squad, which saw a number of players sold including Walcott, Giroud, Coquelin, Sanchez and Oxlade-Chamberlain.  The total profit on sale of player registrations was £120.0 million (2017 - £6.8 million) and player loans amounted to £2.3 million (2017 - £6.9 million).

During the year the Group sold a property, next to Holloway Road station, which was one of its two remaining property development sites.

Net interest costs were impacted by a positive movement of £3.3 million (2017 - £2.0 million negative) in the market value of the Group’s stadium finance interest rate swap.

Following additions to player registrations, at a cost of £165.8 million, and amortisation charges, the book value of intangible fixed assets (player registrations) was increased to £238.2 million (2017 - £182.0 million).

The year-end cash position was robust with balances of £231.3 million (2017 - £180.1 million). This meant that overall net cash was a surplus of £14.8 million (2017 – net debt of £47.7 million). Increased levels of debtors and creditors were attributable to the club’s transfer activity, both inbound and outbound, with instalments of the transfer fees being payable and receivable over time and mainly over the next two years.

Commenting on the financial results, the club’s chairman, Sir 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.”