afc Arsenals money situation - whose confused

[will h]

This is what i mean, the author may have a rough idea where money is going, but in the article he portrays it as fact and then a lot of people believe it as fact.The people who know how and where money is spent will be the directors because the general public are not given enough info to know everything. You will struggle even with PLC's that release thier annual accounts to the public, to know exactly the ins and outs of the finances.It seems to me this author has gathered together info from many various sources, some of which are likely to be completely unrealiable (notw, the sun etc) and then pieced it together and came up with his own opinion and presented it as factual. Like i say i'm sure there is some truth to the article, as i believe currently we are experiencing some cash flow problems, but i'm not believing for 1 second this guys figures or opinion are 100% accurate unless he is a director, accountant or an auditor for Arsenal.

all them figures the person got are straight from the arsenal holdings plc annual report , u can see most in the profit loss and balance sheets. http://www.arsenal.com/userincludes/docs/results24092007.pdfAs i understand it arsenal holdings plc (the co. that owns arsenal and the highbury propety companys) are plc but u cant buy shares cos the majority of them r controlled by a few who dont sellbut accountants will tell u a set of accounts aint as objective as it seems people look at it different waysthis is another angle cos im sure the board wouldnt admit to all of thisnone of us really no whats goin on, but given whats gone on season after season, the figures shown from last year, and the current economic climate i find it hard to believe we have 50million available and money for big wages but who knows

Safe for that. I just finished my accouting degree so was interesting to have a read through.One thing obviously to bare in mind is that is for the 2006/07 season and not all figures mentioned in the article are from this report (although a lot are) and again the author has made several assumptions about what finances what within the club.I found this quite interesting though:

Despite the income and profits which we can expect to derive from the new Premier LeagueTV contracts and from the Club’s operations at Emirates Stadium, shareholders should notnecessarily expect future years’ accounts to report growing profits and ever increasing cashbalances. This is because the Board continues to believe that the best long term policy forthe Club is to re-invest profits and cash back into the development of the team. Accordingly,our business plans and budgets are prepared with a clear objective of making available tothe manager the maximum possible funds for the development of the playing squad. Westrongly believe that pursuing this policy of continual investment in the Club’s playing staffwill provide the best platform for a virtuous circle of continued on-field success at the highestlevel and, consequently, growth in the Club’s support and revenues in the long term.

It doesn't sound like a board that is holding back money from the team or doesn't understand that if they invest in the team they could produce higher future revenues as some people have suggested. If we have it arsene will get it. I think the main problem is we have a manager who doesn't like to spend huge sums of money if he doesn't have to because that is his philosophy. Before the emirates we never spent really big and we're still not doing it now.

[TF S4DK]

Exactly.

Therefore what you said is a oxymoron.

[Guest Eduardo]

No, I'm simply saying the money is there but using it would destablise the club.Other clubs tend to not care too much about doing that but we do.