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Gunners Show The Way As Financial Chaos Reigns

Gunners Show The Way As Financial Chaos Reigns

In a week in that has seen/may see Portsmouth Football Club go into administration as they fight to remain in existence and reports claim that the Premier League accounts for more than 50% of all football debt across Europe, Arsene Wenger's Arsenal show how a football club should be run.

Arsenal Chairman, Peter Hill-Wood today announced via Arsenal.com profits of £35M and the reduction of debt by almost £130M.

"I am pleased to report that the Group has delivered another profitable set of results for the first six months of the financial year.'

'There has been remarkable progress at Highbury Square over the last twelve months and it is clear that the next couple of years will see our property activities delivering surplus cash. This is very good news, although I would not want to speculate on the exact quantum or timing of this. How we will use this surplus remains undecided but, in addition to investing in the team, I think we will examine investment in Club projects and infrastructure, both in and around Emirates Stadium, which will provide a long lasting benefit to the Club and our tremendous, loyal supporters.'

'Looking ahead, our strong financial base allows us time to take a measured and diligent approach to determining the Club`s direction beyond our move to Emirates Stadium and into the next phase of growth."

Whilst some of the more bizarre (and I'm guessing mentally challenged) members of the Arsenal community are reporting that the club are paving the way for a take over of Arsenal Football Club by clearing the debt as quickly as possible to make us a more attractive prospect to wealthy American or potential suitors and subsequently plunging us back into debt, in reality what the club has demonstrated is that with meticulous planning and good management, not only can you build a new stadium, buy players and compete for trophies (ok we haven't had one for 5 years, but we've still competed) but you can create a financially stable future for the club and it's fans.

Yes it has been frustrating not to win something for 5 years (bigger picture, there are literally 100's of clubs who wish they had won silverware as recently as 5 years ago), but would you really forego the future of your football club for short term glory?

Maybe you should speak to the fans of Leeds United, Bradford City or Portsmouth before answering.

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Click here to join in the debate on the club forum.

Writer:Rocky7
Date:Friday February 26 2010
Time: 11:04AM

Comments

0
Agree 100% Can't understand the aguments being made by the sites stating the club is being fattened to make a sale more likely. If the club is debt free the shares are worth more - thus a takeover becomes at least as expensive if not more ! Anyone who thinks paying off the debt early is a bad idea are either financially inept or Gordon Brown. All the time we have large debts a large chunk of the money we generate goes on paying the interest not on players or anything else the club want to do with the cash. Its no different than having a mortgage, any overpayment not only saves you the interest on that month but all the months upto the loan being repaid. With the rest of the prem (and many in europe) in financial peril or soley reliant on a sugar daddy to remain solvent, a debt free Arsenal FC will be a solid powerhouse for years to come.
thedom
26/02/2010 11:38:00
0
I can see both sides of this argument. Of course what Le Grove is saying is somewhat far fetched, however, there is certainly some good points in their argument........thedom, the point you make about being debt free pushing up the share price is exactly what they are talking about. It means the current shareholders would get more money when they sell. Whilst I also think Rocky7 has some valid points you do have to question why PHW & Fiszman have both sold shares to Kroenke over the past few months if they have no interest in a takeover??
Ashburton Gooner
26/02/2010 11:44:00
0
I will also say, that personally, I cannot wait to see the club debt free. I believe Gazidis said in his interview that the debt has further reduced since these accounts to 194 million or so. When you consider that Arsenal have 101 million of cash in the bank you can see that they are very close. Hopefully we can get a big kit deal next next year either from Nike again or one of the others. We got 55 million last time so maybe we could get an even bigger one.
Ashburton Gooner
26/02/2010 11:53:00
0
The thing is that the club is paying off the debts by itself, no sugar daddies coming to the rescue, and it's doing so WHILST making truly massive profits, so why does it to be made a more attractive prospect? Infact, the club should be more attractive to Kronke now whilst the share prices are in their lower state. If he was in it for the money now would be the time to buy. Complete scaremongering bull crap. I have my fears that by the time our club is in a position to dominate that the league will have fallen to pieces due to the inept running of other clubs, but that's not our fault and we can only carry doing what we're doing with the hope that other clubs see the light and begin to live within their means.
Rocky7
26/02/2010 11:54:00
0
AG - I thought we sold ourselves short with the last deal, and with Ivan in charge I reckon he can muster up a pretty tasty deal.
Rocky7
26/02/2010 11:55:00
0
Impressive to wipe 130m debt in such a short space of time.
paul_ownz
26/02/2010 12:00:00
0
R7 - We sold ourselves short with Emirates sponsorship but I thought the kit deal with Nike was pretty good. Lets hope we can get a real massive one next time though........ With regards the shares Kroenke has a slight problem in that Fatmanov is offering more than he is prepared to. Kroenke won't go above £8500 yet Fatmanov is still buying shares here & there for over 9K. I believe Kroenke will make his move this summer (after may so he doesn't have to offer more than his 8.5K), he could possible get control if PHW & Fiszman are with him but he has no chance of getting the whole club because Fatmanov will not sell at that price.
Ashburton Gooner
26/02/2010 12:06:00
0
Yes you're right ... it was the Emirates deal I was thinking of. I don't know which kit makers pay the best, but I'd prefer we went back to Adidas next time around. Much classier looking imo.
Rocky7
26/02/2010 12:10:00
0
I think you might be disappointed then, as everyone seems to believe we'll be switching to Puma.
Ashburton Gooner
26/02/2010 12:21:00
0
Can we have a bit of both worlds now, please? Both Arsenal Football Club & Arsenal Property Holdings.
shewore
26/02/2010 12:24:00
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