Gunners see the results of their heavy spending following financial announcement.
Arsenal have announced their latest financial results for the year ending in May 2014 and have recorded a profit of just £4.7m, according to the London Evening Standard.
The Gunners have found themselves down an estimated £2m down from the previous year, though there has been a bigger turnover this time around with an increase in turnover from £280.4m to £301.9m.
Group profit before tax was GBP4.7 million (2013 – GBP6.7 million).
The group’s total turnover amounted to GBP301.9 million (2013 – GBP280.4 million).
Turnover from football increased to GBP298.7 million (2013 – GBP242.8 million) driven mainly by Premier League broadcasting, the FA Cup run and commercial activity including a full year of the Club’s extended partnership with Emirates.
Taking account of increased costs, principally wage costs, operating profits (before depreciation and player trading) from football increased to GBP62.1 million (2013 – GBP25.2 million).
Wage costs of GBP166.4 million (2013 – GBP154.5 million) represented 55.7% of football revenue (2013 – 63.6%).
Profit on sale of player registrations was reduced to GBP6.9 million (2013 – GBP47.0 million).
Low key year for property business with revenues of GBP3.2 million (2013 – GBP37.5 million including sale of the market housing site at Queensland Road) and operating profit of GBP0.4 million (2013 – GBP4.4 million).
The Group has no short-term debt and continues to be in a robust financial position with cash balances, excluding those amounts designated as debt service reserves, of GBP173.3 million (2013 – GBP119.6 million).
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