A breakdown of Arsenal's money schemes

[Marquis de Carabas]

http://swissramble.blogspot.ch/2012/...-same.html?m=1

Fascinating, one would hope that the increase in revenue stream will fill the need to sell players each year. An increase of some 60% would more than cover that. Roll on 2014. It will be an interesting summer next season as do we have anyone left to sell to fill the large loss poor commercial revenue gives us.

Also interesting that Arseblog states Gazidis' wages at £1.36m with a £675,000 bonus. That would explain that huge hike in staff wages.

Also still carrying players like Squillachi and Arshavin when they offer little to the squad pushes up the wage cost significantly.

[Fist of Lehmann]

As ridiculously overpaid as these high-flying executives are, even £1.36m is less than 1% of our reported overall wage bill of £143m.

Premiership wage bills tend to rise every year, that's just the nature of the football beast.

The fat trimming that Gazidis spoke about earlier this year proved tougher to implement than we all hoped. So in efficiency terms we still have players withdrawing a paycheck while contributing nothing to the football club.

[IBK]

http://swissramble.blogspot.ch/2012/...-same.html?m=1

Fascinating, one would hope that the increase in revenue stream will fill the need to sell players each year. An increase of some 60% would more than cover that. Roll on 2014. It will be an interesting summer next season as do we have anyone left to sell to fill the large loss poor commercial revenue gives us.

Also interesting that Arseblog states Gazidis' wages at £1.36m with a £675,000 bonus. That would explain that huge hike in staff wages.

Also still carrying players like Squillachi and Arshavin when they offer little to the squad pushes up the wage cost significantly.

Most pertinant of all:

The explosive wage growth is nothing new. In fact, since 2009 wages have gone up £39 million (38%), while revenue has only grown by £10 million (5%), leading to a significant worsening in the wages to turnover ratio from 46% to 61%. This is by no means terrible (most Premier League teams have a ratio above 70%, while Manchester City notched up 114% in 2010/11), but is of concern, especially as Manchester United have managed to maintain their ratio around 50%. Though not the only reason, this helps to explain why so little has been spent in the transfer market.

Most Arsenal fans perceive that the club is being run to make a profit, nothing more. The reality is that the club has been drifting a bit in terms of its commercial revenue, in comparison to other teams' growth. Wages are first and foremost determined by what the petro billionaires spend - so the level of wages that we have to pay for top players is pretty much outside our control.

So when you consider that currently we have little choice but to sell players to make any money (because wages take up almost all our non-sales profit); the club clearkly needs to be very careful not to increase the wage bill/ratio even higher, and every sensible company needs cash reserves - our activity/non-activity in the transfer market - that everyone has such an issue with - makes a lot more sense.

[Power n Glory]

Most pertinant of all:



Most Arsenal fans perceive that the club is being run to make a profit, nothing more. The reality is that the club has been drifting a bit in terms of its commercial revenue, in comparison to other teams' growth. Wages are first and foremost determined by what the petro billionaires spend - so the level of wages that we have to pay for top players is pretty much outside our control.

So when you consider that currently we have little choice but to sell players to make any money (because wages take up almost all our non-sales profit); the club clearkly needs to be very careful not to increase the wage bill/ratio even higher, and every sensible company needs cash reserves - our activity/non-activity in the transfer market - that everyone has such an issue with - makes a lot more sense.

[Kano]

Most Arsenal fans perceive that the club is being run to make a profit, nothing more. The reality is that the club has been drifting a bit in terms of its commercial revenue, in comparison to other teams' growth. Wages are first and foremost determined by what the petro billionaires spend - so the level of wages that we have to pay for top players is pretty much outside our control.

So when you consider that currently we have little choice but to sell players to make any money (because wages take up almost all our non-sales profit); the club clearkly needs to be very careful not to increase the wage bill/ratio even higher, and every sensible company needs cash reserves - our activity/non-activity in the transfer market - that everyone has such an issue with - makes a lot more sense.

if we didn't have such a ridiculous wage structure for young players that would free up wage money - so laying it onto other clubs preventing us from being able to afford 'top' players is not really true. we hinder ourselves in that regard.

[mastermind84]

if we didn't have such a ridiculous wage structure for young players that would free up wage money - so laying it onto other clubs preventing us from being able to afford 'top' players is not really true. we hinder ourselves in that regard.

no it wouldnt


United, Chelsea, and City also pay high wages for youngsters. We were the first to do that, and then those clubs got got hip to it and are now buying the best yonugsters too. And those clubs are still expanding the top salaries. If Arsenal stopped paying top salaries to younger first team-ish players, and then middle tier players which is usually the next step in these misguided rants by our fans, then we would not have a team that makes the Champions League every season.

Here is the truth, we are stuck. We cannot expand the Emirates anymore, TV income is a Premier League controlled thing, and those other clubs have more money than us and will always have more money. The talking point is "commercial contracts" but its not like United, Madrid, Bayern, Liverpool, etc wont end up with a bigger one the day we sign our newest one. The only hope is that FFP actually works and starts punishing big clubs for spending more than they earn and who incur large losses. If it does not, I can see Kroenke and co selling the club to a billionaire (not named Usmanov) and Arsenal joining that party.

[Power n Glory]

no it wouldnt


United, Chelsea, and City also pay high wages for youngsters. We were the first to do that, and then those clubs got got hip to it and are now buying the best yonugsters too. And those clubs are still expanding the top salaries. If Arsenal stopped paying top salaries to younger first team-ish players, and then middle tier players which is usually the next step in these misguided rants by our fans, then we would not have a team that makes the Champions League every season.

Here is the truth, we are stuck. We cannot expand the Emirates anymore, TV income is a Premier League controlled thing, and those other clubs have more money than us and will always have more money. The talking point is "commercial contracts" but its not like United, Madrid, Bayern, Liverpool, etc wont end up with a bigger one the day we sign our newest one. The only hope is that FFP actually works and starts punishing big clubs for spending more than they earn and who incur large losses. If it does not, I can see Kroenke and co selling the club to a billionaire (not named Usmanov) and Arsenal joining that party.

It still needs reviewing because the youth policy looks dead in the water now and we've lost quality experienced players because we've overvalued youth over experience for too long. We're quick to dish out contracts to kids but take ages to sort out deals for established first team players. With this structure, we'll never be able to keep our main players.

[mastermind84]

It still needs reviewing because the youth policy looks dead in the water now and we've lost quality experienced players because we've overvalued youth over experience for too long. We're quick to dish out contracts to kids but take ages to sort out deals for established first team players. With this structure, we'll never be able to keep our main players.

those two fullbacks are dead in the water? Or our #1 as well?

Here is the other thing, if we didnt pay Bendtner and Denilson the money they were seeking, another club would have. And I have seen how upset Arsenal fans got when the club let go of guys like Fran Merida, Jay Emmanuel-Thomas, and even Henri Lansbury. Bendtner and Denilson actually contributed to the first team and played well before they signed the new deals, unlike those other guys I mentioned who barely got a whiff of action.

The problem isnt giving those players a lot of money, the problem is we cannot make up the £100 million+ revenue difference between us and United. And even United are having issues because they cannot compete with City, Chelsea, Barca, and Madrid financially.


The only way this all changes is if FFP actually works. I dont believe it will. I wonder if Kroenke is hoping that premiership clubs breakaway from the current TV deals and each club has their own deals like in Spain. Even if that were to happen, United would always trump us, and I suspect Liverpool would too.

[Power n Glory]

those two fullbacks are dead in the water? Or our #1 as well?

Here is the other thing, if we didnt pay Bendtner and Denilson the money they were seeking, another club would have. And I have seen how upset Arsenal fans got when the club let go of guys like Fran Merida, Jay Emmanuel-Thomas, and even Henri Lansbury. Bendtner and Denilson actually contributed to the first team and played well before they signed the new deals, unlike those other guys I mentioned who barely got a whiff of action.

The problem isnt giving those players a lot of money, the problem is we cannot make up the £100 million+ revenue difference between us and United. And even United are having issues because they cannot compete with City, Chelsea, Barca, and Madrid financially.


The only way this all changes is if FFP actually works. I dont believe it will. I wonder if Kroenke is hoping that premiership clubs breakaway from the current TV deals and each club has their own deals like in Spain. Even if that were to happen, United would always trump us, and I suspect Liverpool would too.

Deja vu and it's too early to talk about our fullbacks and keeper because I remember Clichy, Denilson and Vela looking great in the early days. Regardless, if we're saying that they're our future, they will soon hit a brick wall, or glass ceiling with the wages because we won't change our wage structure. The set up we have now with players like Poldoski, Cazorla and Arteta is similar to what we used to do. They're not on silly wages and we'd have more of a chance of winning something with experience over youth.

That line about Man Utd and the £100m in sponsorship money brings back memories too. Back in the Highbury days, I remember the club saying our Nike sponsorship deal was crap and we needed to move stadiums to compete with United because Highbury was too small. Wash and repeat! Caught in the matrix.

[Kano]

so this is make an excuse for arsenal/wenger/board about everything thread?

please re-title and make it clearer next time.

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