Financial results for 2023/24 | News
Arsenal Holdings Limited
Financial Results for Year Ended 31 May 2024
Arsenal Holdings Limited has now filed its consolidated accounts for the Arsenal Group for the year ended 31 May 2024 at Companies House.
The overall loss for the year was £17.7 million (2023: £52.1 million). There were no exceptional items impacting the loss for the 2023/24 year whereas the prior year included £18.1 million of exceptional costs relating to impairment of player registrations.
The improvement in the underlying result reflects a return to playing in the UEFA Champions League, where the club reached the quarter-finals, and a strong performance in the Premier League, where the club led the table for much of the season, eventually finishing in second place. This football performance combined with the club’s commercial strategy enabled a significant growth in revenue. Revenue for the year was a record level of £616.6 million (2023: £466.7 million).
Arsenal Women finished the 2024/25 season in third place in the Women’s Super League and won the League Cup. Six games were played at Emirates Stadium and we established a new WSL attendance record by selling 60,160 seats for the Manchester United fixture in February 2024.
The result for the year can be broken down into the following key components:
| 2024 £m |
2023 £m |
|
|---|---|---|
Football revenue for the year was £613.5 million (2023: £464.6 million) with increases from all our main revenue streams.
The return of Champions League football meant there were 25 home fixtures and matchday revenue increased to £131.7 million compared to £102.6 million in the prior year. Across all men’s home fixtures, the average attendance was 60,095 (2023: 60,082).
Broadcasting revenues rose to £262.3 million (2023: £191.2 million), the reason for this being principally the higher levels of UEFA distribution from Champions League as compared to the UEFA Europa League in the previous season.
Commercial performance, in the second year of a new commercial strategy, was strong across the board and revenues were significantly improved to £218.3 million (2023: £169.3 million). The renewal and extension of our agreement with Emirates led the way on partnerships but was supported by the naming rights deal for the Sobha Realty Training Centre and an increased number of secondary deals at improved valuations.
The club’s retail operations provided another highlight with significant year-on-year growth to outperform an ambitious growth plan, and our summer 2023 tour of the USA also delivered improved revenues. Commercial performance was supported throughout by strong delivery from supporter-focused marketing campaigns aligned to the development of the club’s global brand.
Wage costs increased significantly to £327.8 million (2023: £234.8 million). The increase was mainly driven by investment in player wages in both men’s and women’s teams. There was also an impact from increased commercial and operational headcount.
The total profit on sale of player registrations was £51.1 million (2023: £10.7 million) and player loans amounted to £1.4 million (2023: £1.5 million). Player trading profits continue to have a significant impact on overall profitability and the club’s ability to realise profits during 2023/24 was again adversely impacted by market conditions with reduced overall liquidity as clubs’ acquisition budgets continued to be impacted by financial pressures.
During the year there was limited activity in the Group’s property development business where revenue was £3.0 million (2023: £2.1 million).
Net finance charges were increased to £18.4 million (2023: £6.2 million). This increase reflects a combination of higher borrowings and higher market interest rates. The accounting requirement to apply a notional interest rate, where player transfers are being paid in instalments, had an impact of £6.5 million (2023: £nil).
Following additions to player registrations at a cost of £255.7 million and amortisation charges, the book value of intangible fixed assets (player registrations) was increased to £486.6 million (2023: £417.0 million).
The year-end cash position was £66.8 million (2023: £42.8 million). The renewal of season tickets for the 2024/25 season was again very strong but the timing of renewals meant that the cash impact of this was partly deferred until June.
Funding is provided mainly by the ultimate parent company, KSE UK Inc., which is wholly owned by the ultimate controlling party, Mr. E. S. Kroenke. During the year KSE UK Inc. provided funds both to underpin the club’s transfer activities and for working capital purposes as required.
The club continues to be compliant with all applicable financial sustainability regulations put in place by UEFA and the Premier League.
Consecutive qualifications for the UEFA Champions League for 2024/25 for both men’s and women’s teams represent a positive continuation of the club’s progress and we look forward to an exciting end to the 2024/25 season.
Financial results – year ended May 31, 2024
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