Finance Guru: £136m Arsenal reveal has been ‘five years in the making’ as new details revealed
The absence of Champions League football at Arsenal has had a major impact on their decline in commercial income.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the Gunners’ annual results for 2020-21.
Arsenal reported a £107.3million loss for the financial year in the results published to Companies House last Wednesday (2 March).
Commercial revenue fell by £12m to £136m over the accounting period.
With the exception of 2019-20, the Londoners’ commercial income has fallen every year since they were last in the Champions League in 2016-17.
Commercial earnings rose to £142m in 2019-20, but that was due largely to the initial boost of new deals with Adidas and Emirates.
Plumley explained that a lack of European football on the biggest stage correlates with sponsorship and merchandise income.
“Clubs benchmark against those around them,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“Arsenal are looking at what the likes of Liverpool and Man City are doing. They have been their competitors off the pitch for the past few decades.
“When you ask what those clubs have that Arsenal haven’t, you have to bring in on-pitch performance.
“Commercially, sponsors are always looking for as much exposure as possible.
“One of the primary ways you’re going to get that is through the Champions League. That is what the big commercial partners are interested in.
“It’s been five years in the making to an extent because that’s how long they haven’t been in it.
“You can’t say it’s direct cause-and-effect. It’s not as simple as saying that £12m drop is because they aren’t in it, but we do know it has an impact.
“They have got a good chance of getting back in the Champions League this season. That is the aim.”
Arsenal are currently in the top four with multiple games in hand over their rivals for Champions League football.
Mikel Arteta’s side are next in action against Leicester City on Sunday (13 March).
In other news, Kevin Campbell hails “genius” Mikel Arteta after footage emerges.