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Arsenal in best financial health in Premier League

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It’s quite interesting because we all thought that the Londoners Arsenal were going to have problems due to the down-turn in property prices in London. Obviously, they still have the old Highbury and it was going to give the Gunners a great revenue boost if they could get good money out of selling their old home ground.

The Arsenal administrators always said that if they get a good offer for Highbury, it was going to be a surplus and if they didn’t it is not going to be a massive problem for them because it is not like they had budgeted to get that money as many speculated or believed.

Yes, there has been a drop in property prices and yes, there has been recession but that is only desirable to a certain kind of people. People like who make good money and they have a very desirable property just because they can make a good profit from the sale of it.

Not only Arsenal has done exceptionally well financially, they don’t rely on owners to put money in. They have got this take over battle which most of the Arsenal fans hope would just go away or stay away. For the record, Arsenal are the only top club living within their mean.

For more on the topic, follow the link and listen to Guardian writer and financial football expert David Conn on Episode 37 of the Soccerlens Podcast.

Comments (15)

  1. These facts need to be repeated over and over. It is NOT OK to take your club to the brink of financial ruin just to win a trophy in the short term (viz @Onest ‘Arry at Portsmouth).

    Arsenal don’t get enough credit on the pitch NOR off it.

    Arsenal is THE model club for ALL others to aspire to.

    EOS!

  2. It is not just that leveraged buyouts of football clubs are risky business, it is also that these same clubs have wasted millions in the transfer market-which has contributed massively to their current financial position- in order to buy short-term success.
    How can you seriously argue that the Arsenal model is the way to go? Arsenal are the only club who have had to sell players this year to finance the stadium.
    Arsenal have won nothing for 5 years, and sadly that will not change this year despite an improvement, why ? Because they are not able to invest sufficiently in experienced players and have not done so. They have not yet shown they can beat a top side at the business end of the season and are always an injury away from not competing at all.

  3. The term ‘living within your means’ is endlessly misused. Financial models in business come in many shapes and sizes. As long as you remain solvent you are ‘living within your means’.

    At the end of the day it’s all about asset value. Utd are valued at approx. 1.2 billion…….and no other English club come close.

    Personally, as a fan, I’d prefer to be winning trophies on a regular basis.

    This financial hype is getting out of hand!

  4. bd conell
    ur quite stupid
    u dont look at the big picture
    arsenal is the role model which others should folow.then let others try and win trophies without signing 30 million pounds players…try winning trophies with a constrained budget,that shows ur a top club,try coming top 4 in all seasons with such stipulations thats a sign of a top club…not metrely begging money from owners,and selling bonds….by the way arsenal is valued at 1 billion..ur also not always solvent.look at manhole ..their in debt,look at chelsea they have a owner who erased all their debt,look at liverpool their broke…look at arsenal they live within their own means…thats a club..

  5. Do you know ManU seek money form Asia… it’s in deep trouble that we dun know… only they know best. Value is Zero when doomday come… So they are trying hard to sustain it…

  6. @DKD: I actually know something about corporate finances buddy and you picked that 1billion number out of the air because I can assure you that it is NOT true. Arsenal were valued at 745m UK Pounds by Forbes this year. But why not throw in 335 on top to fabricate a point?? Believe me…ignorance will out!

    Now let me describe an ideal model for a football club to you. Starting with an even playing field at the start of the PL era Utd have built a dynasty based on a successful youth system, an outstanding manager and business management that has seen them stay at the top and reinvest in the team and stadium, while at the same time being light years ahead of everybody else in developing the commercial side of their business and growing their fan base in emerging markets.

    All of which of course genereated more profit and enabled them to reinvest in the best and remain successful. It’s a case study in excellence when looking at how to run a successful football team.

    Arsenal meanwhile spent plenty in the early Wenger years but then invested in a new stadium and couldn’t. For 5 years they’ve struggled to stay on the pace and the trophies they have won in the PL era (which is what it is all about for fans) are laughable when compared with Utd.

    Utd now have owners that have chosen a highly leveraged model to finance their investment and I, like other Utd fans, have no love for them. But at the end of the day a Ferrari is still a Ferrari, regardless of how it is financed and the yanks will move on when they are forced to.

    In the meantime Utd are going nowhere while the rest of us are wondering when Arsenal will ever win another trophy!

    Read a bit more and get yourself some further education…….and take my advice….don’t pick numbers like 1 billion out of the air based on no knowledge whatsoever and you won’t look so foolish.

    Big picture my ass! You don’t understand the meaning of ‘living within your means’.

    Now back to school sonny!

  7. Man U cannot be worth 1.2bn, it’s impossible. For that to be the case, it would have to have an enterprise value of some 2bn. and that is simply not the case. At best Man U is worth 500m because of the huge debts on the books.

    Arsenal are worth anything from 800m to 1bn. There is no one way of valuing a club abd different people will come to a different conclusion. If I owned the club, I would not sell it for less than 1.3bn.

  8. @LB: here’s the link: http://www.sportsbusinessdaily.com/index.cfm?fuseaction=sbd.main&ArticleID=129291

    Those amounts are in US dollars so at todays exchange rate the values in Pounds Sterling are: Utd 1.16B and Arsenal: 743M.

    Any for crying out load….for once and for all………..the valuation is NOT affected by how the club is financed!!!!!!!!!

    If you buy a house for 1million and finance it with an 800,000 mortgage is the house now only worth 200,000. Absolute nonsense. Clubs/ businesses are valued as going concerns…..based on the revenue and profits they generate, existing assets, growth potential etc.

    Whether they are owned outright or heavily leveraged like Utd does NOT matter to the valuation.

    If the Glazers cashed in tomorrow they would pocket the proceeds, pay off the debt and be left with a healthy profit. The new owners would have their own finance model (e.g. if it was a rich oil baron they wouldn’t require any debt for the purchase).

    Debt is ‘owned’ by….or remains the responsibility of whoever contracts for it

    So you might want to revisit: ” Man U cannot be worth 1.2bn, it’s impossible.”

    As for : “If I owned the club, I would not sell it for less than 1.3bn.”

    In which case you’d be waiting a very long time to attract any interest because it is worth significantly less than that! But then maybe you know better than Forbes!

  9. with your arrogance you really could’nt support anyone other than man u

  10. @dr: If you visited this site regularly you wouldn’t have to speculate on who I support.

    As for arrogance, if you want to call listing facts, based on solid research and pointing out to others that they know little about what they are talking about…..then yes, I am arrogant.

    But if you want to get to the core of the debate and not be white washed by unsupported claims of valuations and complete ignorance regarding corporate finance and how debt influnces the ‘worth’ of a club then take-in what I am saying and ignore the rest.

    Forget arrogance my friend and give me something substantial regarding this particular debate……or is the locker empty in that regard? ;)

  11. ManU are in a strong position, if they maintain the current level of support and success. The £700+ debt is simply passed on to the new owner, who will finance it in their own way. The merit of Arsenal’s position is that the finances will withstand a drop in success. Its a fact that it will take longer to generate a successful side via the arsenal model. You either accept that fact or go and support someone else.

  12. If the Glazers hit a financial problem, Manchester United is going to hit real trouble. Don’t think it can’t happen, a lot of smart people have seen their fortunes dwindle away. On the other hand, Arsenal is much more financially stable as this article attests. They’ve chosen to invest their money in youth rather than established players, and though they haven’t won any trophies in recent years they will surely come in time.

  13. Arsenal. Easily one of the best run clubs in the world. Would anyone disagree? But just who is the best run club in the world?

  14. @ Brian Kingston:

    Yeah right… that explains why the glazers are literally begging their players for money now…

    Wont be long when there would be huge pots n bowls kept outside old trafford so that the spectators n supporters cud drop a penny or 2 as a “Charity” towards the calamity or rather “Catastrophe” called “Glazers” that has currently hit Old Trafford…

    Too Bad… Manu cant be hanging onto the likes of Ronaldo just because they cant wipe out the debts the glazers have created @ 1st place…

    Believe me if it wasn’t for Fregie Manu would have been the Next Portsmouth…

    Still deluded fans like yourself think Manu’s got the Ideal Model to live with…

    Dream On Champ!!! Dont wanna wake you up from your Day Dreams….

  15. Lots of insignificant bitching here.

    We can argue to high heaven about who has the best fiscal model that the clubs use but at the end of the day Man Utd can continue to go about their financing because they have a huge fanbase and worldwide regognition which aides them no doubt in their financial dealings.

    Be realistic, if the glazers had not come to the fore and lumbered the club with such a heavy debt they would still be as competitive on the pitch as they are now! Of course they would.

    Arsenal are going about if differently and although they have a large fanbase its not as big as United’s. Continued good play and a trophy or two would bring in higher revenue on sponsorship and more fans which means more cash. Thats how United did it after all!

    Its very interesting to see football fans argue over who is wealthier rather than results lol. It strikes me a bit like Harry Enfields character.(yes sir, I am Considerably richer than yaouwww.!)
    Ally, Arsenal fan, Enjoying football.