Arsenal announced Friday a loss of £27.1 million ($34.6 million) for the most recent fiscal year, citing the combination of high player wages and a lengthy absence from the UEFA Champions League competition as the main contributing factor for the poor financial performance.
The loss is the club’s first since 2002, according to Chairman Sir Chips Keswick.
Arsenal Holdings plc released the after tax total for the fiscal year ending May 31 2019, down from a $72.1 million profit the previous year. Commercial revenues were up significantly, increasing profits from $495.6 million to $504 million. Still, operating profits rocketed to $295.8 million thanks to what the club called “continued investments in player wages.”
“Our player trading profit for this financial year was limited and this combined with a second consecutive season of Europa League football has meant the club recorded its first overall loss since 2002,” Keswick said in a club statement. “For 2019-20 we will see increased commercial revenues from Adidas and our renewed deal with Emirates, but another season outside the Champions League will continue to apply pressure to our financial results.”
The Gunners were shockingly eliminated from the Europa League on Thursday at the hands of Olympiakos in extra-time, meaning the only way they end the Champions League drought will be to charge into the Premier League top four. Currently Arsenal sits ninth in the table, six points off fourth-placed Chelsea.
Back in July, Arsenal director Josh Kroenke – son of owner Stan Kroenke – warned that the club “had a Champions League wage bill on a Europa League budget.”