How can Arsenal afford to spend £200 million?

foreign

million pounds on Declan rice over 60

million on Kai haverts and probably more

to follow Arsenal is spending big this

summer for the club this continues an

ambitious pattern but having spent the

better part of the last decade outside

of the Champions League how can they

afford to spend this much money

Arsenal's ambition is impressive 145

million pounds was splashed in the

summer of 2021 and the next year a

further 165 million was spent to turn

Michael arteta's Squad into title

contenders each summer now trumps the

last since 2020 300 million pounds has

been spent and without significant sales

to balance the books and the

restrictions of financial fair play are

being felt elsewhere in the Premier

League yet not at Arsenal who've posted

pre-tax losses of 226 million pounds in

the past three years

but Arsenal maintained a relaxed Outlook

they'll play Champions League football

next season for the first time since

2016-17 and almost inevitably

record-breaking revenues will follow

while the summer recruitment of 2021 and

2022 might have carried risk during

seasons of reduced income streams this

time around it comes on a far stronger

footing I don't see too much reason why

they should be worried about ffp says

Kieran Maguire Finance lecturer at

Liverpool University and co-host of the

prices football podcast Maguire also

points to the bonuses that will be

achieved from front of shirt and Stadium

sponsor Emirates as a reward for

qualifying for the champions league and

to the 30 million pounds they learned

just for playing in the group stage

Arsenal ultimately have to comply with

two sets of ffp rules the Premier

Leagues and those overseen by UEFA

now the domestic regulations permit

clubs to lose as much as 105 million

pounds over a three-year monitoring

period but within those assessments are

a host of caveats losses attributed to

the pandemic can be knocked off as can

other allowable deductions such as

Stadium developments Youth and Community

Development and women's football the

current assessment period also gives

added leeway to the financial Damage

Done by covid-19 in 2019-20 and 2020-21

with those Seasons bolted together and

an average taken from the two now that

leaves Arsenal effectively posting a

pre-tax loss of 168 million pounds for

the period ending 21-22 but the

deductions permissible are enough to

satisfy the Premier League's number

crunches it's estimated that the club

could potentially write off as much as

162 million pounds of that now these

figures do not include last season's

Hefty spend or obviously the outlay

ahead of this one but Arsenal's

Financial strength has also been

transformed by events of the last 12

months

the Resurgence last season is likely to

have brought Central distribution from

the Premier League in the region of 180

million pounds owing to increased Merit

payments and additional income from

overseas broadcast rights the run to the

Europa League last 16 is likely to have

added as much as 30 million pounds in

prize money and match day Revenue all

that guarantees a market uplift in

turnover and next season an extended run

back in Europe's Elite competition would

be worth more than 70 million pounds in

prize money a club who are in danger of

falling behind the rest of England's

Elite with revenues 75 million pounds

less than neighbors Tottenham Hotspurs

in 2122 and 114 million less than fellow

londoners Chelsea has come bounding back

in the last two years in fact Arsenal

are back at the levels of 2016-17 when

annual revenues peaked at 419 million

pounds accounts for the 22-23 season due

to be published this winter will depict

a club catching up with its Rivals the

returns for 23-24 might even see them

overtaking one or two of them

and sales would help too unlike the last

three seasons Arsenal could raise

something in the region of 100 million

pounds via outgoing players and another

strength has been their cost control the

wages paid out in 2122 accounted for

just 58 of turnover and only in 20 20 21

the season played almost totally behind

closed doors as the ratio gone higher

than 70 percent the 212 million pounds

paid on wages in 2122 was dwarfed by

Manchester United's 384 million

Manchester City's 354 and Chelsea's 340.

if we take a look at their wages they

were lower in 2022 than they were in

2018 at Kieran Maguire what we've seen

over the course of the last five or six

seasons is Arsenal getting their costs

under pretty good control even though

they've not been a Champions League club

again that puts them in a strong

position

now Arsenal's wage structure has since

been expanded with the arrivals of

zinchenko and Jesus last summer as well

as improved contracts for bakayosaka and

ramsdale plus the signings of rice and

havertz these will matter more under

uefa's revised ffp rules now known as

Financial sustainability regulations

which came into force in June last year

clubs will not be able to commit more

than 90 of turnover on wages transfers

and agents fees in 2324 with that

falling to 80 in 2425 and ending at 70

in 2526 the loss is allowed over a

three-year period have also climbed from

30 million euros to 60 million under

uefa's revised rules

so unlike Chelsea Leicester city

Manchester City and West Ham United

arsenal were not one of the 19 clubs

placed on uefa's monitoring list last

September and the expectation is that

they are not among those sailing close

to the wind and the Outlook is good

because of the TV revenues the big

English clubs are already well set to

conform with uefa's rules says dan

Plumley a sports Finance expert and

lecturer at Sheffield Hallam University

Arsenal have actually got more scope

than most they're back in the Champions

League Crowds Are Back and they're in a

position where they're confident in

their ability to invest

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