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Why we cannot sign players
Discussion started by Merlion96 , 19 June, 2019 05:34
Why we cannot sign players
Merlion96 19 June, 2019 05:34
A better way to look at Arsenal's budget is by how much they can increase costs compared to revenues.

In 2017/18 - the most up to date numbers published - the club had revenues of £388million, a wage bill of £223million and an amortisation charge of £85.8million.

The amortisation charge is the cost of all their signings added together and divided over the length of their contracts.


This means Arsenal were spending 80% of revenues on wages and amortisation - a relatively high figure for a top side.

The season before, when revenues were higher and costs were lower, the percentage of revenues being spent on wages and amortisation was a much healthier 65%.

With revenues lower in 2018/19, the percentage is likely again to be in the 80% ballpark, given the spending Arsenal embarked on last summer.

[www.football.london]

The estimated loss of revenues for 3 years out of CL Cup competition is about £160 million.


The high amortisation charge of £85.8million per annum is due to the 2013 season spree, starting with Ozil, then Alexis ..., and we are still paying that bill for the next 2 seasons, i.e. till end of those over-priced and underperformed players.

TV Broadcasting revenues are forbidden to use to pay for player transfers.

And with declining revenues due to poor performances n the pitch, we will run afoul of FFA if we makes a deficit, i.e. for 3 years running, we must be sustainable and cannot sustain deficits for 3 seasons.

If FY2018/19 is predicted to run a deficit of about £50million, then cost cutting measures are needed to reduce this deficit for FY2019/20.
Hence, Sanllehi and Venkat will not allow Emery to spend beyond that £40 million to ensure that FY2019/20 deficits will be manageable and should not exceed £50 million to stay within FFA rules.

Emery had only 2019/20 season to bring Arsenal FC back into TOp-4 by staying within the budget and grooming youngsters into senior team like Ajax Model of Team-Building. That is the only reason why Unai Emery got the job.
Be another "Arsene Wenger" to build a Top-4 teams on a shoe-string budget.

Arsene Wenger did that for 18 consecutive seasons. And Unai Emery is expected to follow this KPI.



'Every footballer has a humanitarian role in society. He doesn't live solely for himself, but for others too.' Mohamed Aboutrika, (a face of hope reflected in Tahrir Square).

Re: Why we cannot sign players
Padre Pio 19 June, 2019 07:38
Arsene Wenger paid wages that were commensurate to a top 3 or even second place team the whole of his tenure and by the time he left equal to a top 2 team. Hardly on the shoestring of mythology. He also wasted loads of money of useless transfers eg Lucas Perez or Santos. Big money losers and of course players allowed to go for free. We are now living with a crisis caused by him and Gazidis



- until Wenger moves on, they'll always be the also-rans in the major competitions. A club in elite purgatory. Always good enough to make it to the big race, never fast or smart enough to push over the finish line in first place. That's all about the manager. Until he changes, Arsenal fans will continue to celebrate glorious failure.

Re: Why we cannot sign players
tigerline 19 June, 2019 11:47
Wasteful wenger ... been saying it for years.

It was not that he refused to spend money; it was that he spent money very poorly.

Re: Why we cannot sign players
Padre Pio 19 June, 2019 14:20
Quote:
tigerline
Wasteful wenger ... been saying it for years.
It was not that he refused to spend money; it was that he spent money very poorly.

Under Dein he bought mainly gems punctuated by turds, after Dein went it was mainly turds punctuated by gems



- until Wenger moves on, they'll always be the also-rans in the major competitions. A club in elite purgatory. Always good enough to make it to the big race, never fast or smart enough to push over the finish line in first place. That's all about the manager. Until he changes, Arsenal fans will continue to celebrate glorious failure.

Re: Why we cannot sign players
Merlion96 19 June, 2019 21:37
In other words, after Dein left, Silent Stan deserves "Not the type of people we want" PHW, Fizman, Lady Nana & Co; and of course, Gazidis and Wenger both his trusted men to run Arsenal Holding Plc into the grounds.

Yup, chicken had come home to roost and this fund manager and his son are currently presiding over a declining asset simply due to lack of investment in the club like what FSG did at Liverpool or Glazer Family did ay Manchester United.



'Every footballer has a humanitarian role in society. He doesn't live solely for himself, but for others too.' Mohamed Aboutrika, (a face of hope reflected in Tahrir Square).


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