03 Jul 2016 04:45:10
Ok let's see how this sits with everyone.
Just been reading that Arsenal has around £51 million in cash to spend on players in 2016.
That is, if they tap into there £50 million overdraft. ( came from Arsenal financial reports which are public )
If that is true! After buying Xhaka for around £30 million Arsenal have probably only another £20 million to be able to spend comfortably. Now! I'm no financial expert I'm only relaying some figures from
CORRI SARRI STATHAM Investments which are available for anyone to read.
If this is correct? and I have no reason to believe otherwise, it certainly puts the lid on any massive signings happening for this season.
03 Jul 2016 06:46:26
Arsenal is different. very different
*Arsenal Holdings (ISDX:AFC) reported weak interim results, with net loss of £3.4m. Partly this was attributable to negligible profits from player sales £0.3m v £26.7m (H1 2015) . The board gave a cautious outlook mentioning the uplift in revenues from the Premier League broadcasting but higher costs in the form of inflationary wage pressures and transfer prices.
*Due to the structural issues identified below, our view is Arsenal is not investable for the general public, the fact its ISDX quotation has survived is anomalous.
*Revenue growth to end May 2016 is seen as muted given no change in gate/ match day income and the drop off in property development/ player trading. Our forecast is for revenue growth of 2% in FY2016 to £351.5m.
*The heavy investment in players has already hit cash levels quite hard. We expect a £44.4m spend on player registrations over FY16. In our forecast for FY16 we anticipate a net profit of £3m.
*Arsenal has significant levels of cash but net levels are far lower limiting the club’s spending – we estimate Arsenal has around £54m of cash that could be deployed on new players (assuming the board tap the £50m overdraft facility) .
Structural issues.
“Spend more money on players†is an often heard criticism of Arsène Wenger and of the
Research
Arsenal board of directors who include Sir Chips Keswick and majority shareholder Stan Kroenke. Fans tend to have a shortRterpmoforctu:s, understandably.
Since Mr Wenger was appointed in 1996, Arsenal has been transformed from reliance on gate receipts to diverse income streams. Arsenal has rapidly grown broadcasting, commercial and retail revenues. Widely credited for cultivating talent internally rather than throwing money at the transfer market, Wenger has demonstrated a financial acumen lacking in the premier league. Numerous club rescues has amply demonstrated the pitfalls of the sector’s profligacy. Since Mr Wenger’s appointment the Arsenal share price has jumped a staggering 40 fold from £400 to £16000 per share. This is a highly commendable achievement.
Fan criticism tends to ignore the significant “structural issues†at Arsenal notably that it is essentially a controlled subsidiary. Stan Kroenke’s KSE UK Limited holds 66.8% of Arsenals 62,217 shares whilst Alisher Usmanov holds 30.05% – the listed shares are a tiny minority interest. Relations between shareholders are reported to be limited. Mr Usmanov has left the board and KSE UK to their own devices. Shareholders are treated differently, KSE receives a £3m annual payment but shareholders receive zero dividend. Player spending decisions are in the hands of the board which include KSE representatives.
By remaining on the ISDX (ICAP Securities and Derivatives Exchange) Arsenal is subject to relaxed corporate governance standards. Kroenke is under no pressure to take full 100% control nor split Arsenal shares. He is required under takeover rules to buyout other holders if his stake hit 75%. This does not appear to be Kroenke’s short term plan however especially as Mr Usmanov appears happy with the status quo. The quote as such is extremely illiquid and given the current ownership structure unlikely to change.
03 Jul 2016 07:05:04
Lanesra
That doesn't include the 60 million a year we get from the Emirates and puma. It also doesn't include the new TV money.
We have loads of money to spend.
03 Jul 2016 07:41:18
51,000,0000
That must make us quite in comparison to most of the PL then.
Not sure that quite right mate.
03 Jul 2016 07:45:13
Quite poor it was meant to say ( bloody phone )
03 Jul 2016 08:12:12
Well don't shoot the messenger boys.
I'm only sharing what I have read.
As I said I'm not a financial expert. But I am confident that these people know a lot more than we do. Unless there is a financial expert on this site.
It is what it is I suppose.
03 Jul 2016 08:15:11
Malaga.
Have a look at the full report mate.
You may be able to understand it better than me.
I just posted the bit about transfers that caught my eye.
CSS investments Full Arsenal Report.
03 Jul 2016 08:16:08
When me and Mrs Dags go shopping, i tell her i have £150 to spend.
In reality, I have about £600 to spend, but I don't tell her that.
You feel me on this?
03 Jul 2016 09:38:39
Are you saying admitting you are a bit slippery mate? .
LOL.
03 Jul 2016 10:15:45
Just a bit mate lol.
03 Jul 2016 10:27:55
Is that why people always drop you dags 😆.
03 Jul 2016 16:05:27
Yep lol.