Football finance has mutated since Stan Kroenke took majority control of Arsenal in 2011, but the value of clubs themselves has only gone one way, even as the Gunners themselves have faltered on the pitch.
Ultimately, 2024-25 was a let-down for Arsenal, who before the season started were many pundits’ favourites for the Premier League title.
Yes, they reached the Champions League semi-final for only the second time in their history. However, three 2nd-place Premier League finishes in succession and another trophyless season looks an awful lot like stasis, even if Mikel Arteta has brought his team a long way up until this point.
But for Stan Kroenke, though he would not admit it publicly, the campaign was a success. Arsenal spent only modestly and didn’t require any external funding from the owner, while still qualifying for the 2025-26 Champions League, which is the only real non-negotiable for the Gunners’ finance department.
As a result, Arsenal will record a profit for the first time since Kroenke took 100 per cent control of the club in 2018, though that will not be confirmed until their 2024-25 accounts are released next April.
Chart showing the profit and loss account of Arsenal over the last 10 years, superimposed over a generic image of a football pitch
Arsenal profit and loss accounts Credit: Adam Williams/TBR Football/GRV Media
And in the background, the health of Arsenal as a business has continued to fortify after six years in the Champions League wilderness. Annual commercial income, where the North Londoners have consistently underperformed relative to their peer group in recent seasons, shot up from £173m to £222m. Matchday income too was significantly up, with £132m in ticketing income reflecting their return to the European big time.
The fog hasn’t yet cleared when it comes to how this improved commercial performance will translate to the transfer market this summer. Arteta, alongside new sporting director Andrea Berta, are pushing to finalise a deal to sign Benjamin Sesko, the RB Leipzig striker who they hope can be the goalscorer they missed last term. Another target, Real Sociedad’s Martin Zubimendi, is also believed to be close, notwithstanding a reported late approach from Real Madrid.
Photo by Fred Kfoury III/Icon Sportswire via Getty Images
Photo by Fred Kfoury III/Icon Sportswire via Getty Images
If both players join, the headline figures will show a total spend north of £110m. Exactly how much cash they have left to spend will then hinge on how those deals are structured and whether there are any substantial player sales in the coming weeks.
All in all, however, the Kroenkes – whose main representative in North London is now Josh Kroenke – will be pleased with how things are going at Arsenal. The fact that they are considering expanding the Emirates Stadium suggests an ownership regime who are in it for the long haul.
Their main aim? Capital appreciation. They bought the club for around £800m all-in. They want to sell for much, much more. And the latest research shows where they are up to in that process.
Arsenal valued at £2.5bn, expert says Stan Kroenke’s lobbying for new Champions League format is key
For Kroenke Sports & Entertainment, the aim is either to make Arsenal so profitable that they can recoup their £800m investment in dividends or prove the long-term viability of the business model to a buyer.
Either way, revenues need to rise, costs need to be optimised, and the owners need to scale the business well beyond N5.
In the last year, they have had success in this department, as a new football finance report from Forbes illustrates. According to their assessment, Arsenal’s enterprise value has increased by 31 per cent to £2.5bn. That is the biggest appreciation by any club in the top-20 apart from Newcastle United, whose value rose by 38 per cent.
Rank Club League Country Value 1-y value change (%) Revenue Operating income
1 Real Madrid Spanish La Liga Spain £5.18bn 9 £685m £60m
2 Manchester United English Premier League England £5.14bn 9 £616m £147m
3 Barcelona Spanish La Liga Spain £4.39bn 2 £660m £-114m
4 Liverpool English Premier League England £4.21bn 2 £565m £80m
5 Manchester City English Premier League England £4.01bn 2 £683m £111m
6 Bayern Munich German Bundesliga Germany £3.93bn 3 £613m £66m
7 Paris Saint-Germain French Ligue 1 France £3.45bn 4 £592m £-99m
8 Tottenham Hotspur English Premier League England £2.51bn 14 £522m £126m
9 Chelsea English Premier League England £2.46bn 1 £487m £0m
10 Arsenal English Premier League England £2.5bn 15 £617m £110m
SOURCE: Forbes Soccer Valuations 2024
“Arsenal’s value has supersized due to the fallow period they had when the club did not qualify for the Champions League for many years,” said Kieran Maguire, University of Liverpool football finance lecturer, in exclusive conversation with TBR Football.
“That appears to have been addressed and there is now an expectation that they will be a regular recipient of Champions League money.
“As far as the UEFA distribution is concerned that it is Champions League or nothing. Therefore, being part of the top four – or five, as it was this season – is crucial. Arsenal have additional home matches at a large stadium and can charge Champions League prices. The change to the Swiss model in the competition has been factored into the value estimations. It’s completely different this year.
Significantly, Kroenke was among the club owners to actively lobby for the new Champions League format, which netted his side close to £100m in 2024-25.
“I suspect there has also been a cautious view of Arsenal’s value in recent years. Because we’re seeing these larger multipliers applied by valuers, this has resulted in benefits for Arsenal,” Maguire continued.
“Higher domestic and European broadcast money as well as ticket prices increasing have all contributed to the increased valuation too.”
Why Arsenal actually have way more than £97m PSR headroom
A brilliant piece of research from The Athletic recently outlined the estimated PSR capacities of each Premier League club, i.e., how much they could afford to lose in 2024-25 without breaching PSR.
Arsenal’s headroom was estimated at £97m. Given that they are on course to post a profit for the financial year, neither the Premier League nor UEFA’s spending rules will be an issue for the current assessment window, which rolls over on 30 June.
However, the Gunners actually have even more PSR headroom, which could theoretically help them out in the next three-year PSR assessment window too.
Photo by Stuart MacFarlane/Arsenal FC via Getty Images
Photo by Stuart MacFarlane/Arsenal FC via Getty Images
Under domestic PSR, clubs are allowed to lose up to £105m over a rolling three-year period so long as £90m is guaranteed by a club owner.
However, the ‘guarantee’ can either be in the form of loans from the owner, external borrowings from a reputable financial institution, or equity.
Given that Arsenal have £324m worth of shareholder loans from Kroenke, that means they have the full £105m allowance, which greatly increases their PSR headroom.