Arsenal Pulls In $66.3M Profit, Welcomes Stan Kroenke To Board
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New Emirates Stadium Helps Arsenal
Generate $66.3M In Profit For Fiscal Year |
English Premier League club Arsenal Thursday announced pre-tax profits of $66.3M (all figures U.S.) for the FY ending May 31, 2008, up from $48.6M for the previous year, according to the LONDON TIMES. The team's revenue also increased to $402.6M from $362.6M, "reflecting growth in revenues following the club's move" to the new Emirates Stadium. Arsenal Chair Peter Hill-Wood: "We are committed to operating the club as a business which is financially self-sustaining. This is clearly demonstrated having achieved our second highest ever pre-tax profit." Hill-Wood added, "We have reported significant [revenue] growth reflecting a growth in our core football business. There are two main reasons for this. Firstly, new Premier League domestic and overseas TV deals have led to a rise in broadcasting income of [$43.5M to $123.4M], and secondly, matchday income was [$170.7M] and remained the most important component of the Group’s income.” Hill-Wood also noted that he "felt the continued financial growth of the club was a clear vindication of the move" to Emirates Stadium (LONDON TIMES, 9/19). But in London, Jeremy Wilson reports Arsenal's "net debt has grown significantly over the past 12 months," from $484.0M to $574.0M. The debt includes the $451.6M of "long-term fixed rate bonds" for the stadium, as well as $240.9M in bank loans (London TELEGRAPH, 9/19).
WELCOME ON BOARD: The TELEGRAPH's Wilson reports Nuggets and Avalanche Owner Stan Kroenke, who owns a 12.38% stake in Arsenal, Thursday "accepted an offer to join the club's board." Kroenke will become a "non-executive director of the club, meaning that almost 60[%] of the club's shares are now controlled by the board." However, it is "significant that Kroenke has not agreed to the 'lockdown' agreement drawn up by board members last year which prevents the trading of shares without the consent of fellow directors." Kroenke confirmed that he "will not increase his shareholding beyond 29.9% of Arsenal's issued share capital within the next 12 months unless he has the agreement of the board or following the announcement of an offer or possible offer for Arsenal or if there is a material change of circumstances." Bringing Kroenke onto the BOD is "widely interpreted as an attempt to stave off the possible takeover ambitions" of Arsenal co-Owner Alisher Usmanov, who owns the largest stake in the club at 24.9% (London TELEGRAPH, 9/19).
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