LONDON (AP) _ Arsenal's move to a bigger stadium has paid off,
with turnover increasing by almost 50 per cent to a club record
200.8 million pounds (C$406.6 million) and giving manager Arsene
Wenger a healthy transfer budget.
Arsenal Holdings PLC said Monday its record results, for the year
ending May 31, came as a result of the move to the 60,400-capacity
Emirates Stadium in July 2006.
The Gunners had played at the 38,500-seat Highbury Stadium for
the previous 91 years.
Arsenal chairman Peter Hill-Wood said the club earned 3.1 million
pounds (C$6.3 million) from each match day last season _ for a total
of 90.6 million pounds (C$183.4 million).
That's more than double the 44.1 million pounds (C$89.3 million)
produced by match-day revenue at Highbury.
Group operating profits increased by 274 per cent to 51.2 million
pounds (C$103.6 million), before player trading and depreciation.
However, the club's net profit dropped by nearly 64 per cent to
2.82 million pounds (C$5.7 million) _ from 7.9 million pounds (C$16
million) a year ago _ because it had to refinance long-term debt
connected to building the new stadium.
Arsenal sold striker Thierry Henry to FC Barcelona in the
off-season and bought striker Eduardo da Silva, defender Bacary
Sagna, goalkeeper Lukasz Fabianski and midfielder Lassana Diarra.
And with the positive financial figures, Wenger, who normally
buys players prudently, now has access to a significant transfer
fund.
``Well I think we've got plenty of financial firepower to make
transfers that Arsene Wenger wishes to make,'' Arsenal managing
director Keith Edelman said. ``We had over 70 million pounds
(C$141.7 million) in cash at the end of year and if Arsene Wenger
wants to spend that money we will make it available.''
The results were released amid speculation of a takeover of
Arsenal by Russian billionaire Alisher Usmanov, who increased his
stake in Arsenal to 21 per cent last Tuesday, becoming the club's
second-largest shareholder.
American businessman Stan Kroenke also invested in the club over
the past year and owns 11.26 per cent.
``The board holds 45.5 per cent and we believe there are other
shareholders out there that will support the board so we are very
confident that we would actually win control and keep control of the
club,'' Edelman said.
Edelman said Arsenal had a ``very good relationship'' with
Kroenke, through a marketing partnership with the Kroenke Sports
Entertainment group and Major League Soccer club Colorado Rapids.
Arsenal officials have not met with Usmanov.
``As far as Usmanov is concerned, we have always stated our
belief as a responsible corporate body, we meet anybody who requests
a meeting, and that is still our policy,'' Edelman said.
Usmanov's Red and White Holdings Ltd. has David Dein as its
chairman. Dein was a vice-chairman at Arsenal before he was ousted
from the board in April for his support of foreign investment.
Edelman said Arsenal did not want to rely on a single person
putting money into the club, saying its shareholders were all fans.
