Quote Originally Posted by Marquis de Carabas View Post
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.