Arsenal record first financial loss since 2002
Arsenal have recorded their first overall loss since 2002 after publishing their accounts for the financial year ended May 31, 2019.
The post-tax loss of £27.1m is a significant one for the club, who posted a post-tax profit of £56.5m for accounts from the previous year.
The switch from a profit to a loss can largely be attributed to Arsenal’s activity in the transfer market and increased player salaries.
The club’s wage bill rose by £8.4m, with it increasing from £223.3m in 2018 to £231.1m for May 2019.
The total profit on the sale of players also fell from the previous year, with Arsenal making £12.2m from their transfer business.
The year before, in 2018, it had been a profit of £120m as the likes of Alex Oxlade-Chamberlain (£35m), Olivier Giroud (£18m) and Theo Walcott (£20m) were all sold.
Average annual profits on the sale of player registrations over the last five years, including 2019-20, have been £34m.
Arsenal’s year-end cash position, despite the delay of season ticket renewals into June as a result of the club making the Europa League final, was £167m.
Commenting on the accounts the club’s chairman, Sir Chips Keswick, said: “Our player trading profit for this financial year was limited and this combined with a second consecutive season of Europa League football has meant the club recorded its first overall loss since 2002.
“For 2019-20 we will see increased commercial revenues from Adidas and our renewed deal with Emirates but another season outside the Champions League will continue to apply pressure to our financial results.”
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