Arsenal is the fifth club to publish their accounts covering season 2023/24, their 32nd season in the premier league, and their 98th consecutive season in the top-flight, the longest consecutive streak of any club.
The 2023/24 season marked a return to the Champions League after a six-year absence. They reached the quarter-finals. where they were narrowly defeated by Bayern Munich 3-2 on aggregate. Domestically their season mirrored the 2022/23 campaign as they pushed Manchester City all the way to the final stretch but ultimately came up just two points short. There were no domestic cup runs, exiting the FA Cup in the 3rd road and Carabao Cup in round 4.
As Arsenal solidified their status as a top European club, their finances have also undergone a significant transformation. With their return to elite European football, along with the commercial opportunities it brings, the club's revenues (and expenses) have surged considerably.
Overview of Arsenal Financial Results 2023/24
The 2023/24 season saw Arsenal achieve a record turnover of £617 million, marking a 33% increase compared to the previous year. This performance places them 3rd in the Premier League (behind the two Manchester clubs) and 7th in Europe, just behind Barcelona. However, their costs followed a similar upward trend, resulting in a £17 million loss for the season, an improvement from last year’s £52 million loss.
Season 2023/24 Financial Highlights:
Record turnover of £617 million, a 33% increase from the previous year.
Growth across all major revenue streams, with Champions League participation driving a significant boost.
3rd highest revenue in the Premier League and 7th highest in Europe.
Staff costs rose by 34%, reaching nearly £500 million.
Profit from player sales totaled £51 million, thanks to the departures of Balogun, Xhaka, and Turner.
The club invested £256 million in new players, with Declan Rice being the standout acquisition.
Record operating cash flows of £176 million, the highest of any club in recent seasons.
Additional financing of £60 million was secured as Arsenal continued to invest in its squad.
While the club has experienced combined three-year losses of £105 million, there are no concerns regarding Profit and Sustainability.
Financial Results
Financial Trends
At the time of this report, Arsenal are 2nd in the premier league and have qualified for the last 16 of the Champions League, finishing an impressive 3rd in the newly formatted group stage.
The financial outlook remains strong, with continued participation in the newly formatted Champions League means revenues are likely to grow again this year.
Arsenal Turnover Season 2023/24
Their return to the Champions League led to a substantial boost in revenue with UEFA's distributions, along with more matches and enhanced commercial prospects. Despite these factors, their 33% growth is still remarkable.
With total revenue of £616 million, they have surpassed Liverpool, claiming the third-highest spot in the Premier League.
And now rank 7th in Europe
All major revenue streams shown strong growth, with broadcast revenue increasing by 37%, matchday revenue rising by 28%, and commercial revenue climbing by 31%.
Matchday Revenue
Matchday revenue is driven by several factors, including the number of home games, average attendance, ticket prices, and the club's ability to generate income from hospitality events and corporate boxes. The only exception is domestic cup matches, where revenue is shared between the clubs and the FA.
For Arsenal, matchday revenue also includes earnings from six Women's games played at the Emirates, which likely contributed an additional £3 to £4 million for the 2023/24 season.
For the men's team, the 2023/24 season saw only one additional home game compared to 2022/23. With the Emirates Stadium sold out for every match, average attendance remained just above 60,000, the fourth-highest in the league. However, like other top clubs, Arsenal has successfully increased its revenue per game. This grew substantially, from £4.2 million to £5.2 million, a 23% rise. This equates to £86 per paying fan, one of the highest in the league, likely driven by improved returns from corporate hospitality following the Champions League return and higher average ticket prices.
As a result, total matchday revenue reached £131.6 million, a 28% increase from the previous season. This places them second in the Premier League, just behind Manchester United and ahead of both Liverpool and north London rivals Spurs.
Broadcast Revenue
Broadcast revenue mainly comes from central distributions from the Premier League, UEFA payments for participation in the Champions League, and income generated through the club’s media platform.
A substantial portion (67%) of the Premier League's distribution is shared equally among the clubs, while the remainder is allocated based on league position and the number of 'live' televised games. With a second-place finish and the highest number of live games in the league, Arsenal’s total Premier League broadcast distributions amounted to £175.5 million.
The 2023/24 season’s revenue is significantly boosted by Arsenal's participation in the Champions League. UEFA uses a similar model to the Premier League for its broadcast and commercial deals, negotiating them centrally and distributing funds to clubs based on various factors. This includes a starting fee of £15.6 million, a club coefficient based on the last five seasons' European performance, a market pool reflecting the country’s TV market, and prize money for progressing through the rounds.
While UEFA's detailed distributions have yet to be published, we estimate that Arsenal earned approximately £79 million for reaching the Quarter Finals. This marks a substantial increase from the £22.5 million they received after their Round of 16 exit in the previous season's Europa League.
For the 2023/24 season, Arsenal's UEFA club coefficient was 72, ranking 22nd. However, this has improved to 14th place this season, which will boost revenue for this year's competition.
With total broadcast revenue of £262 million, Arsenal ranks second in the league, behind champions Manchester City.
Commercial Revenue
Commercial revenue, which includes sponsorships, retail merchandising, tours, and other commercial activities, totaled £222 million, another impressive increase on the previous year of 31%. Arsenal attribute this to a new 'commercial strategy' and the extension of the long-term Emirates deal to 2028, reportedly worth £50 million per year. Like the other 'Big 6' they have very lucrative deals with their kit sponsor, with their Adidas deal worth around £65 million per year.
Commercial revenue remains a key factor that distinguishes the "Big 6" from the rest of the league. Arsenal even with the seasons big increase, earn the least of the Big 6 but is still 2.5 x the next highest being Newcastle. The massive global appeal of the 6 clubs is hard for the other to compete with.
As shown in the table above, Commercial revenue is growing across almost all clubs, with notable increases at Newcastle, West Ham, Brighton and Aston Villa. Across the league, Commerical revenue grew to just over £2 billion and now accounts for 33% of total premier league income.
Arsenal Staff Costs
Total staff costs before profit on player sales rose at similar levels to revenue, reaching £498 million for the 2023/24 season, an increase of £107 million compared to the previous year.
Salaries and wages saw a significant increase of 40%, likely driven by the high salary costs of new signings like Havertz and Rice, player contract negotiations, and likely bonus payments for reaching the Champions League quarter-finals. Their salary bill totaled £328 million, making it the fifth-highest in the Premier League and the ninth-highest in Europe, as shown below.
Amortization, the write-down of player acquisition costs, also rose as Arsenal invested nearly £700 million in players over the past two seasons. This now totals £171 million, which is expected to be the third-highest in the league.
As a result, we anticipate Arsenal’s staff costs will rank fifth in the Premier League. The £498 million figure represents 81% of turnover, a slight increase from the previous year.
Profit from Player Sales
Earning profit from player sales has become a crucial strategy for clubs to meet profitability sustainability regulations. In the 2023/24 season, it’s expected that over 1 billion will be generated from player sales, marking a massive 70% increase compared to the previous season.
For Arsenal, however, this has not been a major source of income in recent years, with only £45 million earned from player sales over the past three seasons—relatively low by Premier League standards. The 2023/24 season was somewhat different, with £51 million earned from selling players like Balogun, Xhaka, and Turner. While Arsenal may continue to offload players who are no longer needed, they are not in a position where they must sell to comply with financial regulations, unlike some other clubs, such as Aston Villa and Newcastle, which face greater pressure to do so.
Arsenal Profit and Loss
Arsenal's profit and loss statement for the 2022/23 season shows a noticeable shift compared to previous years. As highlighted earlier, both revenue and costs saw significant increases. Revenue rose by £152 million, while expenses increased by £130 million, bringing Arsenal's financial profile more in line with Liverpool, with similar revenue and cost structures. They are now competing among Europe's elite, backed by a strong financial foundation.
Overall, Arsenal reported a loss of £17 million, an improvement from the £52 million loss in the previous season. It has now been six years since Arsenal last posted a profit.
In recent seasons, Arsenal's EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) has shown strong growth, ranking among the best in the league. This is a key metric, as it provides a good indication of the club's cash flow.
It’s still early in the reporting season to compare profits across clubs, but the chart below is based on five published accounts (the two Manchester Clubs, West Ham, Brentford and Arsenal), with the rest being our best estimates. The overall league profit is expected to improve in the 2023/24 season, partly due to the change in the mix of clubs—Luton and Sheffield United are likely to report strong profits, whereas clubs they replaced, like Leicester and Leeds, made significant losses. Additionally, we have seen profit from player sales increase considerably in the 2023/24 season.
We have ranked Arsenal 12th in terms of profit with their loss of 17 million.
Arsenal Player Trading
Arsenal's recent success has come off the back of significant activity in the transfer market. In the 2023/24 season, the club invested a record £256 million in new players, with Rice, Havertz, and Timber being the standout signings. Over the past three seasons, Arsenal has invested a total of £695 million, with only Chelsea spending more. They also rank second for net transfer spend (player acquisitions minus player sales), at £564 million.
With this recent investment, Arsenal now has the fourth-highest squad cost (the total cost of building the squad) and the third-highest book value (the squad cost minus the amount already amortized). Both of these figures have grown significantly in recent seasons.
The investment continued in the 2024/25 season, with Calafiori, Merino, and Raya (following an extended loan period) joining the club for a total of £93 million. This will be offset by the sales of Smith Rowe, Nketiah, and Ramsdale, amounting to around £70 million. It’s important to note that, as Smith Rowe and Nketiah were academy players, the full sale proceeds will be treated as profit in the 2024/25 accounts.
Arsenal Football Debt
Many Premier League clubs have benefited from loans provided by their owners, and Arsenal is no exception, with owner Stan Kroenke investing £324 million into the club. This investment increased in the 2023/24 season, with a further £62 million net injected into the club. The loan is repayable with two months' notice (though no notice has been given), and no interest is charged.
Arsenal’s owner debt of £324 million is among the highest in the league, ranking just behind Everton and Brighton. We anticipate their total debt to be the fifth-highest in the league.
Trading debt, where payments for player acquisitions are spread over several years, is common in the Premier League and effectively serves as another source of funding. Arsenal owes £267 million to other clubs and is owed £57 million, resulting in a net trading debt of £210 million. We expect this to be the fourth-highest in the league.
Arsenal Cash Flow
Like most of the 'Big 6' clubs, Arsenal generates strong operating cash flows, which reflect cash before investments and new financing. A healthy cash flow allows a club to invest in players and facilities without the need for new financing, such as debt or equity. However, in reality, few clubs generate enough cash to fully cover their investments. In the 2023/24 season, Arsenal achieved record operational cash flows of £176 million. Despite this, they still required additional funding due to their significant investments in the squad.
The table below shows the last three years, based on the club’s most recent published accounts (either 2023/24 or 2022/23). Arsenal stands at the top, having generated 405 million, far ahead of second-place Manchester United. Yet, they still needed 106 million in new finance to support their squad investments. In fact, only one club, West Ham, generated enough operational cash to cover their investments.
The table also underscores the importance of cash flow, (even in the Premier League). At the bottom for operational cash flows are Everton and Nottingham Forest, both of whom, as we know, received points deductions for failing to meet PSR (Profitability and Sustainability) rules.
Arsenal Financial Outlook
As of this report, Arsenal are sitting second in the Premier League and have qualified for the last 16 of the Champions League, finishing third in the newly formatted group stage.
Revenues are expected to grow again in the 2024/25 season. Their success in the Champions League so far is likely to have earned them around £77 million, already surpassing last season's income. Additionally, commercial revenue is expected to increase as they build on last season’s successes.
There are also discussions about enhancing the Emirates experience and potentially expanding the stadium in the future, though that may be several years away.
There is no doubt that Arsenal is in a strong financial position, and if they can maintain their on-field success, they are well set for continued growth.
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