Yesterday was very entertaining, one of our co-writers, my good friend Alfa, who is also one of my Emirates buddies, put up a post looking to discuss certain questions about Arsenal’s current financial situation. A very lively debate ensued which included us being branded a spud site! So today, I would like to put my views forward for what they’re worth.
Ever since the Man. U and Chelsea matches, the big question for all Gooners has resurfaced again. Why aren’t we buying the 2-3 big players we need to cement our place back at the top of the league?
Arsene points to the dearth of available players and even less of a higher quality than we already have at the club. As Arsenal supporters we have a choice: you either believe this or you think that Wenger is lying. Personally I believe that Wenger did make inquiries about David Villa in the recent window but was unsuccessful and so now with the unlikelihood of securing the signature of David Villa, Wenger has turned to Chamakh who I fully expect to see playing at the Home Of Football next season.
More to the point, can we really not afford to compete on transfer fees and wages, or is it stubborn old Arsene still just trying to prove that he can win with kids?
We haven’t been able to compete since the arrival of Abramovich so we have had to adapt; this doesn’t make Wenger stubborn it makes him pragmatic and by that I mean we now buy players like Arshavin and Vermaelen; which, under the circumstances is no bad thing. As for the youth project, people miss how wide this is and often forget that the fruits of “Project Youth” include Fabrégas.
Only last Wednesday he talked about Arsenal having to live in a ‘realistic world’. So what is the reality for Arsenal?
Wenger could have said we have to live in a realistic world ten years ago as easy as it is to imagine that he will say it in ten years time. I read this as a negotiating ploy; a simple method of trying to keep transfer fees down. And the reality is that we are still in the chase for the EPL and the CL.
Arsenal’s earnings (leaving out interest payments etc.) are probably falling, mainly because existing player wages are going up to compensate them for tax changes.
To my recollection there have only been three contract renegotiations since the summer, Rosicky, Eduardo and Van Persie. The first two are probably so grateful to still be at Arsenal and have accepted a rise of somewhere in the region of £10 a week. RVP is different but his increased salary would have easily been compensated for by the removal of Adebayor’s wage.
The new flats development at Highbury isn’t likely to make any money to help pay off the £242m we borrowed for the Emirates.
Building the Emirates and paying off the cost of it was never dependant of the financial success of Highbury Square. The £242m has been structured in such a way (bond issue) so that it can comfortably be paid back over 25 years.
So whatever money we make is having to go first to existing players to keep their take home pay the same, even though taxes are going up and up.
Rosicky and Eduardo would have got nominal wage increases and taxes will be going up in Spain and Italy to the same level as the UK if not beyond.
Then we have to pay more for the loan on the Emirates than we planned to.
There is no reason to assume this or evidence to support it.
If we didn’t qualify for the Champions League.
We have qualified for the CL in the last thirteen seasons and I see no reason to think that we will not be involved in that competition next season.
Uzmanov wanted to issue new shares and bring an extra £150m into the club. It would pay off a fair bit of debt, get the interest payments down and give some breathing space.
The repayment of the cost of building the Emirates is very much under control so there is nothing that we need breathing space from. That being the case there is no need for a share issue and if there was the current board are just as capable of organising one.
Even £150m wouldn’t put us back in the big league though, just get the bankers off our backs.
We do not have bankers on our backs so this assumption is flawed.
Second option – sell players, starting with Cesc.
This is based on the premise that Arsenal are cash strapped….they are not and therefore there is absolutely no reason to sell our most important asset.
Thanks for being a good sport Alfa and to everyone else, have a good day in AA.