Released today: http://www.arsenal.com/news/news-archive/49598/arsenal-holdings-plc-financial-results
All good and healthy with £119.7m in cash reserves means we can go out and spend in Jan if we can get the right player
We only generated just over 6 million in profit before tax, that's not that good, aren't we supposed to be making good profits?
Profits in the corporate word are not necessarily a good thing (because they are taxed). You can stow certain amounts of cash in places like "Cash Reserves" where they are still considered in the company and not profits. I'm not certain the exact ins and outs of the whole thing, but I think you are mixing up "Operating profits" with "Net Profits". We can make an Operating profit, basically our income - costs, this year 25.2 million, but by stowing it into an expense (cash reserves), read "Just in case of disaster fund", we don't have to pay tax on it, or pay it out to the owner/shareholders.
We don't seem to be generating any good profits without selling players, unless I'm missing out on something.
We would have to know what the cash reserves were last year. Any increase = profit. Cash reserves might well be considered an "Operating expense" and part of the football operation.
Cash reserves haven't increased, it's at 119 million, from 120 million last year, so there hasn't been anything.
A little worrying that without player sales they would have posted a loss. However, there is now increased TV revenue & increased sponsorship deals. In addition, the wage structure is far better - much less wasted money. I expect the next set of accounts to seem far better, as these are a little disappointing.
These are for the year ended 31st May, so sales would not have been included. I doubt player sales/purchases count towards operating profit/loss. They are an asset, so money helps cash flow. If a player is bought for 100m on a 4 year deal, then the Profit and Loss would show a £25m expense each year, not the full £100m in year one. So depending on when a player is sold can influence Profit and Loss, but it's not a simple cash deal.
"One-off charges related to the impairment of certain player registrations and associated costs amounted to £10.0 million." Is that agent's fees?
I saw that too. Hmm bit of an odd one. Probably is an agent's fee. I can't see who else would charge the club for an 'impairment to a player's registration'
I don't get how we didn't generate profit from our real estate? And how we're not making any profit at all from the stadium itself, or even from merchandise? This is a massive football club, we should be generating profit on other areas other than sales of players.
The stadium & merch feed the running costs of the club. They may be "profitable" with regard to covering far more than staff costs, but they alone are not enough to pay the player & management wages.
George Graham? Poor joke, I know, but the language used makes it sound like some sort of dodgy bung. You didn't do any transfers involving QPR, did you?
Arsenal87, what is it that you do for a living? I naturally assumed that you worked in the city in some capacity (on the basis that we take your stories to be true), but it's quite obvious that's not the case
