Arsenal "swung to a net loss" of £3.4M for the first half of the '15 fiscal year, while the club's cash reserves "dropped dramatically compared to six months earlier to £135.9M," according to Mattias Karen of ESPN. Arsenal presented its financial results for the six-month period ending Nov. 30, and said that the net loss -- compared to a net profit of £6.2M for the same period the previous year -- was "largely due to lower income from selling players." The club's turnover from football-related activities rose 6.4% to £158M but the profit from player sales dropped by £26.4M ($36.8M) to just £300,000, which was "partially offset by higher TV and commercial revenues." Arsenal Chair Chips Keswick said, "The reduction in transfer profits reflects the overall stability we have within the squad which, in my view, is a positive factor for the club and under-rated in the modern game. We continue to see robust growth around our commercial revenues and build our support globally through our marketing and media
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channels." Arsenal's large cash reserves have been "a source of discontent" among some fans frustrated that the club is not spending more money in the transfer market. However, the cash reserves are down by nearly £60M from May '15, when they were at £193.1M. That is "largely because" of £39.4M ($55M) spent on player transfers -- including paying off deals made previously -- and capital expenditure of £10.5M ($14.6M) (
ESPN, 2/26).
