January is rubbish. It’s a five-week month so it takes forever to get paid and our potential signings have encountered some issues, mainly on the selling clubs part. In what has been a slow week for news, Deloitte released their money league report for the 2017-2018 season. I’ll give a brief overview then go into the Arsenal breakdown.
This year’s Money League sees a record six English clubs in the top ten, with Tottenham Hotspur climbing above Juventus into the top ten for only the second time in Money League history, having previously appeared in 2006/07.
Real Madrid regained their crown by overthrowing Manchester United, who in turn has fallen to third, with Barcelona taking second place.
Manchester City retains their position in the top five for the third consecutive season, generating growth across all revenue streams after a record-breaking Premier League campaign that saw the club crowned Champions by the largest ever margin, breaking the 100-point mark in the process, and also reaching the Quarter-finals of the Champions League. In the space of a season, the gap to city rivals, Manchester United, has closed by over £40m, falling from £128m in 2016/17 to £87m in 2017/18.
Following a remarkable run to the Champions League Final, Liverpool experienced the largest revenue increase in the Money League’s top ten (£90.6m) and are the highest climbers, jumping two spots to seventh. The club experienced growth in all revenue streams and most notably, alongside fellow finalists Real Madrid, they generated the most broadcast revenue of any Money League club (£222.6m). This broadcast revenue alone would see them appear in the Money League’s top 15, highlighting the impact of successful performance in domestic and European competition.
Conversely, Arsenal are the biggest fallers in the top ten dropping three places to ninth, their lowest position since 2004/05. They experienced the largest revenue decrease (£29.9m) across all top 20 clubs in 2017/18, predominantly due to their failure to qualify for the Champions League for the first time since 1997/98. Although the club reached the Semi-final of the Europa League, distributions from UEFA fell by €27m accounting for the majority of their overall decrease.
Now onto some nitty-gritty Arsenal information.
In terms of revenue Arsenal generated €439.2m which was made up by the following:
- Matchday Revenue: €111.6m (25%)
- Broadcasting €206.9m (47%)
- Commercial: €120.7m (28%)
The main culprit for us falling from sixth to ninth in the Deloitte Football Money League is a consequence of failing to qualify for Champions League football. Arsenal’s revenue fell by £29.9m (7%) which is the club’s first annual revenue reduction since 1995/1996, despite reaching the Europa League semi-final, reduced UEFA distributions from a lack of Champions League football resulted in a marked decline in broadcast revenue (£18.4m) It is also the biggest drop in revenue of any of the clubs within the Deloitte Money League.
Here is our previous years’ revenue for comparison.
Come the summer we should jump back up one or two places, depending on which teams finish where in the Premier League and what progress is made in European competitions. The Champions League in particular as Spurs could leapfrog us if they get increased broadcast revenue from progression. Of course, this matters little, in terms of overtaking us as the bigger club, if they can’t afford to buy players as they have dumped all their resources into the new stadium. They could begin regression, much like us when we moved stadium, except we managed to cope many years after by continuing to qualify for the Champions League.
The Adidas deal comes into play and will give us a nice cash injection. I’m sure other negotiations for smaller partnerships/sponsorships will also be coming up for renewal soon too. If we can get that final Champions League spot or manage to win the Europa League, we will be looking good for next year in terms of our revenue and prospects of quality signings.
There’s not too much more to say on this as much of is pretty self-explanatory and obvious. Hopefully, our new executive setup will help increase revenue with more intelligent and business savvy planning, negotiations and execution.