Sponsor revenue kicks in as Arsenal look to invest

English Premier League side Arsenal have recorded a group pre-tax profit of UK£36.6 million for the year ending 31st May 2012, maintaining its position as one of the most profitable soccer clubs in the world.



The club, which, in recent years, has been praised for its prudence and criticised for its frugality in equal measure, posted its latest annual report on 27th September.



The headline pre-tax profit figure is thanks largely to a UK£26 million profit on player trading last year, a period which saw star players Cesc Fabregas and Samir Nasri leave the club.



Group turnover for the year was UK£243 million, down from UK£255.7 million in 2011 when property sales from the club's redeveloped Highbury stadium accounted for much more.

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'Football revenues' grew this year from UK£225.4 million to UK£235.3 million, an increase that the club went out of its way to attribute partly to increased 'commercial activities'. 

Arsenal's commercial department has been compared unfavourably with its counterparts at Manchester United, Chelsea, and Liverpool in recent seasons.



All three of Arsenal's rivals make far more in commercial income than the North London club, thanks mainly to lucrative front-of-shirt and kit manufacturer deals.

 Arsenal's UK£5.5 million-a-year shirt deal with Emirates expires at the end of next season. The club’s shirt deal with Nike ends at the same time.



Nevertheless, a revamped commercial department has already resulted in a UK£5.6 million growth in commercial revenues this year.



New partnerships with betting company Betsson, car manufacturer Citroën, lager brand Carlsberg and home appliances company Indesit have all contributed to this growth.



While the club has cash reserves of UK£153.6 million, and net debt of UK£98.9 million, it is often criticised for failing to match many of its rivals in the transfer market. 

Wage costs increased from UK£124.4 million to UK£143.4 million last year, despite the sales of Fabregas and Nasri, and now represent 60.9 per cent of football revenues, a 5.7 per cent jump on 2011.



The club has also earmarked funds for a significant investment in its Hale End academy facility.