Arsenal set for £500 million boost in turnover amid financial revival

Arsenal have been linked with the striker for months.Arsenal have been linked with the striker for months.
Arsenal have been linked with the striker for months. | Getty Images
Record revenues driven by Champions League return and commercial growth as Gunners reclaim their financial footing.

Arsenal are expected to report their first positive financials earnings in seven years.

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The Gunners have faced challenging times on and off the pitch, but with a solid second-place finish in the league and a commendable run in the Champions League, Arsenal are once again staking their claim among Europe’s elite.

As per Off The Pitch, the projected financial figures for the 2023/24 season are expected to confirm this recovery, with Arsenal forecasting a turnover surpassing £521 million—a 22.5% increase from last year.

One of the most significant contributors to this financial upswing has been Arsenal's return to the Champions League, a competition from which they are expected to generate £80 million this season. Despite a quarter-final exit, the Champions League income adds substantial value, which, coupled with a second-place finish in the Premier League, is set to elevate the club’s total broadcast revenue to an estimated £258 million.

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Increased Champions League excitement and an extra home game have also boosted matchday income, which is expected to rise by 11.5% to £112.9 million. Additionally, commercial partnerships, such as the extended agreement with Emirates and a new sponsorship from Chinese electronics company TCL, will likely see commercial revenue rise by 12.2%, reaching around £187.6 million.

Though Arsenal’s income is growing, the club’s costs have increased as well. Arsenal have trimmed the squad by offloading 13 players, including high-profile departures like Granit Xhaka and Nicolas Pepe. Yet marquee signings such as Declan Rice and Kai Havertz have pushed the wage bill up by 16%, bringing it to a projected £273.5 million.

Despite these rising expenses, Arsenal's EBITDA (earnings before interest, taxes, depreciation, and amortisation) is set to increase by 42%, reaching nearly £169 million.

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For the first time in seven years, Arsenal are expected to post a positive operating profit, projected at around £4.5 million. By carefully managing player amortisation costs - which have increased by just 4% to £147.2 million - and securing £31.6 million in player sales from departures such as Folarin Balogun and Xhaka, Arsenal have managed to contain costs while maintaining a competitive squad.

The projected EBIT of £38.9 million is a stark contrast to the financial losses incurred during the pandemic. This result is a strong indication that the club is moving beyond the challenging years following COVID and back to the financial health that characterised its pre-pandemic era.

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