Fitch Ratings said that Arsenal, which has gone more than 100 years without being relegated from top-flight English football, "may see its short-term financial performance become more volatile than its results on the pitch" while it searches for Manager Arsène Wenger's successor, according to Adam Manzor of BLOOMBERG. Over the long-term, the ratings agency expects a "neutral to positive performance" by the London-based club, as Arsenal is "likely" to replace the longtime coach, who managed more Premier League matches than anyone in history and won the league three times, "with an experienced manager." For the fiscal year ended May 31, 2017, Arsenal reported a more than 20% increase in revenue to £422.8M, with pre-tax profit rising to £44.6M from £2.9M the year before, "buttressed by the lucrative Premier League TV rights packages." Fitch's "declining outlook for the club has precedence." ManU "went through its own transition" after longtime manager Alex Ferguson left in '13. ManU's net obligations "dwarf those of Arsenal." At the end of the '17 calendar year, its net debt was £328.6M, with cash balances of "only" £265.7M. In contrast, Arsenal's net debt at the end of the '16-17 season was £47M, with about £180M in cash and short-term deposits in the bank and a further £42.7M "owned on transfers." However, if Arsenal is forced to "spend its way back to the top" like ManU has, "its healthy finances could very well deteriorate" (BLOOMBERG, 4/23).
