Arsenal Profits Soar
As expected, Arsenal have announced massive pre-tax profits of £36.7M. This is after paying loan interest of £17M. Arsenal’s debt increased £319.6M to £389.5M. The increase was due to the ongoing developments at Highbury Square and Queensland Road. The debt is not expected to increase, in fact the year saw Arsenal repay £5M of the debt in relation to the Emirates Stadium.
The biggest question makr remains with the Highbury Square flats. of the 680 that have been released, 598 of these are subject to exchange contract. In July, 65 of these flats were sold with proceeds of £18.7M. Other tranches of flats are expected to be sold during the year, helping reduce further the £139.4M property debt.
The cash balance as at the end of May was £95M.
Arsenal are well on track to sell the majority of the flats during the current year and thus reduce the debt considerably. With profits of £36M, add to that £17M interest and we are looking at a club generating in excess of £50M profit per annum, enough for two £20M players a season!!