Twitter | Search | |
Swiss Ramble
As talk intensifies of a potential move of Arsenal’s chief executive, Ivan Gazidis, to Milan, I thought it would be interesting to look at how the club’s financials have developed since he arrived in January 2009. Some thoughts in the following thread
Reply Retweet Like More
Swiss Ramble Aug 23
Replying to @SwissRamble
revenue has grown by an impressive £198m under Gazidis, only outpaced by £366m & £303m in absolute terms. However, this was the 2nd smallest % growth of Big 6. Furthermore, 2017/18 revenue is likely to be £40-50m lower, due to not qualifying for Champions League.
Reply Retweet Like
Swiss Ramble Aug 23
Replying to @SwissRamble
Analysing £198m revenue growth under Gazidis, most (£125m) is from TV, due to central Premier League deals. As Warren Buffett said, “a rising tide lifts all boats”. Commercial up £69m, but this was a slam dunk after long-term sponsorships linked to stadium funding expired.
Reply Retweet Like
Swiss Ramble Aug 23
Replying to @SwissRamble
commercial revenue, where you would expect Gazidis to have most influence, has grown by £69m, the second lowest of the Big 6 over this period, only ahead of £44m. growth was around a third of £209m and also behind £180m, £81m and £76m.
Reply Retweet Like
Swiss Ramble Aug 23
Replying to @SwissRamble
In fairness to Gazidis, Emirates extended their deal (shirt sponsorship & naming rights) from 18/19 for £40m a year (up £10m) – the same as & , but below £58m (current exchange rates) & £45m. Also added “visit Rwanda” as sleeve sponsor for £10m a year.
Reply Retweet Like
Swiss Ramble Aug 23
Replying to @SwissRamble
In 2013 Gazidis said “should be able to compete at a level like a club such as Bayern Munich”. Since then, revenue gap fell from £127m to £82m in 2017, but this is still a large shortfall. With the anticipated £40-50m revenue reduction in 18/19, gap will be same as it was.
Reply Retweet Like
Swiss Ramble Aug 23
Replying to @SwissRamble
In 2011 Gazidis said that “we deliberately kept some powder dry” re spending plans, which has proved to be a poor strategy, as transfer fees have continued to significantly rise, while the weaker Pound has further reduced the club’s spending power.
Reply Retweet Like
Swiss Ramble Aug 23
Replying to @SwissRamble
Furthermore, ability to outspend others has diminished. In 2012 they had almost as much cash (£154m) as the rest of the Premier League combined (£181m), but in 2017 other clubs have seen their cash boosted by new PL TV deals, so they now have £819m compared to £180m.
Reply Retweet Like
Swiss Ramble Aug 23
Replying to @SwissRamble
Indeed, after many years of rising cash, this has actually fallen at in last 2 years: £2m in 2016 & £46m in 2017. This is arguably no bad thing, as it is partly due to higher player purchases, but it does mean that Arsenal now have less cash than £290m & £200m.
Reply Retweet Like
Swiss Ramble Aug 23
Replying to @SwissRamble
Up to the end of the 2016/17 season Gazidis had received £18m remuneration from . Assuming a similar level in 2017/18 as the previous season, this means that he has trousered over £21m to date. His latest £2.6m remuneration represents a 31% increase over his first full year.
Reply Retweet Like
Swiss Ramble Aug 23
Replying to @SwissRamble
Despite a slight decrease in 2016/17 Gazidis’ remuneration of £2.6m is only below Daniel Levy’s extraordinary £6m at (though this apparently includes a backdated pay rise and bonuses), but just above Ed Woodward at . Almost three times his equivalent £0.9m.
Reply Retweet Like
Swiss Ramble Aug 23
Replying to @SwissRamble
From a financial perspective Ivan Gazidis has not been a bad chief executive at , just not especially good. Whether his track record merits Milan’s eager pursuit is debatable. If he does leave Arsenal, the club should be able to find a replacement at least as capable.
Reply Retweet Like
Mhkimouse Aug 23
Replying to @SwissRamble
Was that before Peter Moore became CEO? Can’t imagine a name like that is only on £900K!
Reply Retweet Like
Swiss Ramble Aug 23
Replying to @ARSENAL_REDS
Fair point. He only became CEO in June 2017, ie after those accounts.
Reply Retweet Like
Sir Chips Keswick Aug 23
Replying to @SwissRamble
Good stuff. Swap deal with Gazidis for Ricardo Rodriguez then.
Reply Retweet Like
Swiss Ramble Aug 23
Replying to @sirckeswick
Yes! The more Swiss the better 😉
Reply Retweet Like
Kenny from the Block Aug 23
Replying to @SwissRamble
Would this be the footballing equivalent of keeping cash rather than assets?
Reply Retweet Like
Swiss Ramble Aug 23
Replying to @Kennyf1283
It’s the equivalent of stuffing cash under the bed. Really frustrating that it wasn’t spent when it was worth something.
Reply Retweet Like
Kenny from the Block Aug 23
Replying to @SwissRamble
Excellent thread. Thank you very much.
Reply Retweet Like
Gustaf Aug 23
Replying to @SwissRamble
Really great thread
Reply Retweet Like