The headline figure for Arsenal’s financial results for the fiscal year ending May 2022 was a $45.5 million operating loss. Despite suffering such a setback, Arsenal actually sees this as a positive development after losing £107.3 million the year before.
The absence of European football for the first time in 25 years cost Arsenal a post-tax loss of £45 million in their most recent fiscal year.
However, the club claimed that “the loss of the revenue associated with UEFA football was the principal contributory factor in terms of the overall result for the year.”
Their payroll bill significantly decreased and matchday revenue significantly increased due to the return of fans.
Including all employees and not just Mikel Arteta’s team, Arsenal’s wage bill decreased from £244.4 million to £212.3 million. Matchday’s revenue came to £79.4 million.
Arsenal only made £3.8 million from home games a year prior, with the majority of games being played inside due to the epidemic.
Due to the absence of European football and the previous fiscal year’s inclusion of an additional payment because all games played behind closed doors were shown live on television, their broadcasting revenue also decreased to £146 million (from £184.4 million).
Their return to the Europa League this season is already worth more than £10 million, but that is still a pittance compared to the earnings of clubs in the Champions League.
Chelsea, a contender in the Premier League, earned £60 million after winning the group stage.
The club stated that “6.7 million of exceptional costs in the prior year in relation to staff reorganisation and headcount reduction
On the player side, a process of rebuilding the men’s first-team roster has been underway to increase expenditure efficiency; this includes alterations made in earlier years, but the full benefit has only been realized in the 2021/22 figures.”
Following the departures of high-earning David Luiz and Wilson at the beginning of the previous season, Pierre-Emerick Aubameyang’s January transfer to Barcelona will have saved the team millions.
In addition to describing the outcomes, Arsenal’s statement noted that their significant transfer budget was supported by the club’s contentious owners, Kroenke Sports & Entertainment.
According to the accounts, player registrations and amortization came to £187.9 million.
Gabriel Jesus, Oleksandr Zinchenko, and Fabio Vieira were all added to Arteta’s roster this summer after the club spent more than £150 million on seven players, including Ben White, Martin Odegaard, and goalkeeper Aaron Ramsdale, the previous season.
Commercial income went from £136.4 million to £141.7 million, a modest rise. It was previously disclosed that the club’s contract with Amazon to show the All or Nothing documentary was worth roughly $10 million.
There is still work to be done, but the financial report demonstrates many promising signs for the club’s ascent back to the top.
Given the significant disparity in broadcast revenue and the need for a stronger base to fight at the top, the team’s goal must be to qualify for the Champions League once more.