Arsenal have been ranked by Deloitte’s as the 6th “richest” club, based on turnover. Our football turnover is £209.6m, whilst Chelsea’s is £212.9m, Bayern Munich £233.8m, Barcelona £244.4m, Manchester United ££257.1m and top of the tree is Real Madrid with £289.6m.
Whilst this is impressive, when we look behind the figures we see a different story.
Of the six clubs, our match-day receipts are £94m, second only to Manchester United whose match day receipts are £101m. We are £20m ahead of Chelsea and £15m and £22m ahead off Real Madrid and Barcelona respectively.
Television revenues are peculiar to each country; Real Madrid and Barcelona negotiate contracts with pay per view companies separately, whilst in England we have a collective bargaining agreement.
Where we fail is our commercial and marketing revenues. We earn £44m, Chelsea £61m, Manchester United £64m.
This shortfall of around £20m, is due the deals negotiated by Edelman for the stadium naming rights and the shirt sponsorship. The deal amounted to £100m; this was for an 8-year shirt sponsorship deal (£6m) and a 15-year stadium naming rights. Both of these deals were undersold at the time, Manchester United are on a £14M shirt deal, this is £8m a year more than us, add to that £2m a year for the stadium naming rights and we increase our revenue and profits by £10m a season.
It is the re-negotiating of these deals, plus attracting other major sponsors to the club, that will be remit given to Ivan Gazidis our new chief executive, once he had managed to get van Persie and Walcott to sign new contracts.
The earning potential of Arsenal Football Club is massive; we need to start to tap into that potential and that is before we even contemplate embarking on pre-season world tours.