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Arsenal announce huge losses following COVID-19 pandemic

Arsenal announce huge losses following COVID-19 pandemic

Arsenal’s accounts for the 2019/20 season have been announced, revealing a massive £47.8 million loss.

The figures cover the expenses during the time period from May 31st 2019 through to May 31st 2020. Therefore, Premier League matches played during June and July, as well as August’s FA Cup win, are not included in the report.

August’s FA Cup triumph was not included in the accounts

According to Football.London, the COVID-19 pandemic and subsequent halting of all football cost the club £34m in broadcasting money, as well as £14m in matchday revenue. However, the £34m in broadcasting money will count towards next year’s accounts.

The pandemic reduced the costs of running a football club, with £19m cost savings being made by the Gunners. This is largely made up from the pay cuts taken by first team players and staff.

Meanwhile, the North Londoners reported a £31.4m increase in commercial revenue up to £142.3m, while the wage bill came in at £234.5m.

Arsenal’s wage bill is expected to be lower this year, following the departures of rumoured high earners such as Mesut Ozil, Sokratis Papastathopoulos, and Henrikh Mkhitaryan.

In the transfer market, Arsenal had a reported net spend of £122.1m.

Recruiting the likes of Nicolas Pepe, Kieran Tierney, William Saliba, and David Luiz among others cost the club £182.2m. In contrast, they only received £60.1m in transfer fees – the bulk of which was made up of the estimated £30m received from Everton for Nigerian winger Alex Iwobi.

Furthermore, the decision to sack former manager Unai Emery was also costly. Overall, the process of replacing the Spaniard and his backroom staff with former midfielder Mikel Arteta cost the club £10.4m.

Bringing in Arteta was an expensive process for the Gunners

The announcement of club accounts came alongside a statement explaining some of the financial hardships.

As quoted by Football.London, the statement read: “Throughout the pandemic, the Group has moved rapidly in making the decisions required to proactively manage and mitigate risk across all areas of its operations and, where possible, to provide appropriate support to its community and stakeholders.

“Since the year end the Group has refinanced its stadium finance bonds and undertaken a range of cost cutting measures. These steps will ensure the Club is well placed to respond once the situation starts to improve.

“The financial challenge remains significant, but the Club continues to have options available to it alongside the unwavering support and commitment of its ownership, Kroenke Sports & Entertainment.”

Elsewhere at the Emirates, it is believed that the club are ready to cash in on young midfielder Matteo Guendouzi this summer.

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