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Arsenal has announced a loss of £45.5 million ($55.8 million) after tax for the fiscal year ending May 31, 2022, citing a lack of European football as a major factor.
Arsenal reports a £45.5 million loss despite reducing its wage bill
The Gunners has confirmed a financial loss of £45.5 million for the 2021/22 season (12 months ending 31 May 2022). It is less than half of the £107.3 million loss recorded in 2020/21.
Financial results were worse in 2020/21, with Covid-19 restrictions ensuring almost the entire campaign was played behind closed doors. That resulted in around £85 million in lost revenue that season.
The accounts in 2021/22 were offset by the return of fans. The Gunners‘ fail to compete in any European competition made the significant impact on revenue. That is because it meant no additional prize money or broadcasting income beyond domestic competitions.
Overall revenue from football operations increased to £369 million, up from £327 million the previous year. The return of matchday revenue streams, which increased to nearly £80m from under £4m in 2020/21, was a major contributor to that growth.
Commercial revenue increased by around £5 million, while broadcast revenue decreased by £38 million, owing in part to the absence of UEFA competition and in part to fewer games played overall.
Arsenal generated an operating profit of nearly £81 million from those revenue streams. Another £24.2 million was raised from player sales or loans, primarily the permanent departure of Joe Willock to Newcastle, and £2 million was raised from property trading.
Arsenal’s wage bill will be reduced by around £32 million to £212 million between 2021 and 2022.
However, interest payments of £5.2 million, investment in the playing squad of £127 million. Whileother general expenses of £20.3 million resulted in a pre-tax loss of £45.5 million.
