Pandemic Hammers Arsenal FC Finances
Premier League club Arsenal FC has posted a loss of more than £100m for the 2020/21 season as COVID-19 restrictions shattered its revenue streams.
Football revenue for the year to 31st May 2021 was £327.6m, which was down on the £343.5m posted in the prior year. Matchday revenue fell by some £75m to £3.8m as only two of the 31 home matches were played with fans present due to pandemic-related restrictions.
Broadcasting revenues increased to £184.4m from £118.9m, reflecting distributions relating to the completion of the 2019-20 season and the club’s progress to the semi-finals of the UEFA Europa League.
Commercial revenues were slightly reduced to £136.4m, from £142.3m, mainly as a consequence of pandemic-related factors, the club said.
Overall wage costs were at £244.4m compared to £234.5m in the prior year. Underlying growth in player wages was offset by cost-saving measures in response to COVID, including a wage reduction scheme agreed by first-team players. The club incurred exceptional costs of £6.7m in connection with staff restructuring measures taken in response to COVID impacts.
Arsenal posted a loss for the year after taxation of £107.3m, compared to a loss of £47.8m in the previous year. Pre-tax losses (unaudited) of £85m were more than double the £35m in 2019-20.
The club said significant funding has been provided by the ultimate parent company, KSE UK Inc., which is wholly owned by the ultimate controlling party, Stan Kroenke of Kroenke Sports & Entertainment (KSE). During the year, KSE UK Inc. provided funds to refinance the stadium finance bonds and for working capital purposes.
In a statement, the club said, “The results for the financial year have been materially impacted by the coronavirus pandemic, which caused the majority of matches for the 2020/21 season to be played behind closed doors.
“The financial challenge remains significant, but the club continues to have the unwavering support and commitment of its ownership, Kroenke Sports & Entertainment.”
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