Houses In Motion
Arsenal’s 2024/25 financial results cover a season that included “strong performances” in both the Champions League, where they reached the semi-finals, and the Premier League, where they finished as runners-up to Liverpool.
The Gunners also reached the semi-finals of the EFL Cup, before losing to Newcastle United, but were eliminated in the third round of the FA Cup by Manchester United
While results on the pitch were clearly excellent overall, the club acknowledged that the objective was “to compete for and win trophies”, so it was good news that Arsenal Women delivered some silverware after defeating the mighty Barcelona in a thrilling Champions League final.
League Position
On the men’s side, it has been a case of “close, but no cigar” for a while, as Arsenal have finished second in each of the last three seasons. Although that represents a marked improvement on their eighth place in 2020/21, when they failed to qualify for Europe, this has been a source of much frustration.
As it stands, this season looks promising, though very few Gooners will be “counting their chickens before they hatch”.
Profit/(Loss) 2024/25
Arsenal’s pre-tax loss significantly reduced for the second year in a row, falling from £18m to just £1m, so they effectively broke-even.
The improvement was driven by good growth in (football) revenue, which shot up £76m (13%) from £614m to a new club record £690m, while profit from player sales also greatly increased by £30m from £51m to £81m.
However, this was partially offset by substantial growth in operating expenses, which rose £91m (14%) from £663m to £754m, though net interest payable was largely unchanged at £18m.
In fact, Arsenal would have posted a profit last season if they had not booked a £15m exceptional player impairment charge.
If that once-off payment is excluded, they swung from an £18m loss to a £14m profit.
All three of Arsenal’s main revenue streams set new club highs. The largest increase came in commercial, which rose £45m (21%) from £218m to £263m, as the new commercial strategy has started to pay off.
Success on the pitch led to growth in both match day, up £22m (17%) from £132m to £154m, and broadcasting, up £11m (4%) from £262m to £273m.
Player loans income dropped from £1.4m to £0.5m.
Further significant investment in the squad led to an increase in wages, which rose £19m (6%) from £328m to £347m, another new club record. Player amortisation was only slightly higher at £172m, though there was a £15m impairment charge.
In addition, there was striking growth in other operating expenses, which shot up by more than a third (£55m) from £146m to £201m.
Although it’s rarely good news to lose money, Arsenal’s tiny £1m loss is actually the best result to date for the Premier League in 2024/25, as all the other clubs that have so far published accounts have all suffered larger losses, ranging from Manchester City’s £10m to West Ham’s horrific £104m.
Furthermore, according to UEFA’s Club Finance and Investment Landscape report, the likes of Chelsea, Tottenham and Aston Villa have all made enormous losses in 2024/25, which will be confirmed when they publish their detailed accounts.
Based on the latest available accounts the only two clubs that managed to generate a profit were Luton Town and Sheffield United, who both ended up being relegated, demonstrating that it is difficult to get the balance right.
In addition, Liverpool have just announced a profit after tax of £8m after winning the Premier League last season, but we will have to wait for the full accounts for the pre-tax figure.