Arsenal have announced pre-tax profit of £44.6million after turnover at the club rose by over £70m in the year up to May 31, 2017.
Turnover at the north London giants hit £422.8m, the first time the club has exceeded £400m. This was partly account for by £58m in additional broadcasting revenue from the Premier League in the first year of a three season broadcast deal and Champions League earning.
That led to a notable upswing in profit at the Emirates, £44.6m before tax compared to £2.9m the preceding season.
Commercial income increased by 10 per cent but wages and amortisation on player registrations – the cost of transfer fees – was also on the up.
The cost of wages rose by £4m to £199.4m, representing 47.2 per cent of football revenues. However Arsenal Holdings plc’s report noted: “Year on year comparison is distorted by there being no players’ Champions League qualification bonus in the 2016/17 figures.”
Arsenal continue to have significant cash reserves, with the club having “fully self-insured” against a season’s participation in the Europa League within its cash reserves.
That will have to be accounted for in a year’s time, with Arsenal having dropped out of the Champions League for the first time in two decades after finishing fifth in the Premier League last season.
Arsenal finished the season with an FA Cup win over Chelsea and a new two-year contract for manager Arsene Wenger.
Chairman Sir Chips Keswick said: “The Club’s thirteenth FA Cup win was some compensation for the disappointment of dropping out of the Premier League’s top four for the first time in 20 years.
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“This summer we have again moved to strengthen the squad and we are optimistic about the season ahead.”
Chief executive Ivan Gazidis added: “In order to compete at the top, we need to strive to be better than our competitors in everything we do.
“That is why during the past season we have continued to make substantial investments to drive the club forward. At the top of the pyramid, we have scaled up our investment in our First Team squad significantly in recent years, spending a net £203 million in transfer fees in the last three seasons.”