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Arsenal Finances

drippin

Obsessed with "Mature Trusted Members"

Country: Finland
I'm wondering how does our -235 in wages affect our budget next year? Wasn't there something like 7 million addition maximum to wages per year? So if we now got our wages down, is it better to buy someone in January, so our wage budget does not go down next year? I'm not sure how to explain it well. I mean if we get our wage bill -235k pounds/week, next year we can only add +7 million pounds/year, so that -235 just vanishes? Or is it so?
 

field442

Hates Journalists Named James
Trusted ⭐
I'm wondering how does our -235 in wages affect our budget next year? Wasn't there something like 7 million addition maximum to wages per year? So if we now got our wages down, is it better to buy someone in January, so our wage budget does not go down next year? I'm not sure how to explain it well. I mean if we get our wage bill -235k pounds/week, next year we can only add +7 million pounds/year, so that -235 just vanishes? Or is it so?

That limit on wage bill increases has been removed.
 

Dutch D

Well-Known Member & FPL Champion 19/20
If anyone has the time / knowledge / motivation to deconstruct our amortised bill to me, that would be highly appreciated.

We've just added about ~50m annually over the course of 4/5 years, I believe. Then you have to subtract the amortised value of the players that left to see how much the net change is?

How do incoming transfer fees factor into this? I believe you have to look at remaining value of the player on the books (fee&wages/contract time*remaining years) and the incoming sum and the difference factors into net profit/loss, right? The transfer fee doesn't really affect the amortisation any further, right?

What's the total amortization now after all mutations this summer? What does this predict about the space to invest next summer? The Swiss Ramble twitter thread doesn't talk about this.

Many questions, I'm sorry. I'm just trying to understand it better.
 

Sanchez11

Nobody Is Coming!

Country: England
Great piece of business if true. These are the deals we need to be doing more. We have a decent youth academy and it should also be considered as an additional revenue stream.
I agree if they are not going to make it then sell. We held on to some for too long if we add clauses to the sales its great business.
 

Slartibartfast

CIES Loyalist
If anyone has the time / knowledge / motivation to deconstruct our amortised bill to me, that would be highly appreciated.

We've just added about ~50m annually over the course of 4/5 years, I believe. Then you have to subtract the amortised value of the players that left to see how much the net change is?

How do incoming transfer fees factor into this? I believe you have to look at remaining value of the player on the books (fee&wages/contract time*remaining years) and the incoming sum and the difference factors into net profit/loss, right? The transfer fee doesn't really affect the amortisation any further, right?

What's the total amortization now after all mutations this summer? What does this predict about the space to invest next summer? The Swiss Ramble twitter thread doesn't talk about this.

Many questions, I'm sorry. I'm just trying to understand it better.

This seems to address some of your questions.

 

tap-in

Nothing Wrong With Me
Swiss Ramble gives his account of the summer window and our spending. Its a long thread but for those who are interested in Arsenal's finances, its a good read.

The last tweet is this:




Swiss Ramble

@SwissRamble

·
28m

Part of the fancy financial footwork has simply been a willingness from the #AFC board to be bolder with its cash balances. In the past, it looked like the club wanted to hold enough cash to cover all future obligations, but that always looked to be overly prudent.

 
Last edited:

field442

Hates Journalists Named James
Trusted ⭐
Swiss Ramble gives his account of the summer window and our spending. Its a long thread but for those who are interested in Arsenal's finances, its a good read.


Good read. I think the issue with the £45m budget stories was always how the media portrayed it. Every story they wrote talked in absolute terms. If someone costs £20m only £25m is left to spend. That was never the case. As Swiss Ramble shows it’s a lot more complicated than that. Too complicated for bellends like John Cross and James Benge to get their head around.
 

tap-in

Nothing Wrong With Me
Good read. I think the issue with the £45m budget stories was always how the media portrayed it. Every story they wrote talked in absolute terms. If someone costs £20m only £25m is left to spend. That was never the case. As Swiss Ramble shows it’s a lot more complicated than that. Too complicated for bellends like John Cross and James Benge to get their head around.

Our gross spend was £46m but yes some Bell Ends claim we cant possibly afford Pepe :lol:

People make the same mistake when we sell a player, like Iwobi for £35m. Its doesn't mean we suddenly have an extra £35m to spend because like us, Everton didn't pay it all up front.
 

BigPoppaPump

Reeling from Laca & Kos nightmares
Swiss Ramble gives his account of the summer window and our spending. Its a long thread but for those who are interested in Arsenal's finances, its a good read.

The last tweet is this:




Swiss Ramble

@SwissRamble

·
28m

Part of the fancy financial footwork has simply been a willingness from the #AFC board to be bolder with its cash balances. In the past, it looked like the club wanted to hold enough cash to cover all future obligations, but that always looked to be overly prudent.


Wasn't Swiss Ramble the main one peddling this 45m budget stuff?
 

tap-in

Nothing Wrong With Me
Wasn't Swiss Ramble the main one peddling this 45m budget stuff?

Not sure, if it was then he was pretty accurate because our gross spend was £46m, we then have the 1st yr wages to add to that taking it to about £70m BUT outgoings, although we don't get all payments up front, bring the net spend down further.
 

Mo Britain

Doom Monger
Said it before, it's a gamble because if it doesn't work out we will have fewer funds for transfers in following seasons and fall further behind.

But it's a gamble worth taking because we were going nowhere. The transfer activity gives emery a fighting chance to get 4th.
 

Tomb Bombadil

Active Member
Made a table of our transfer business.
Some of the wages are estimates.
Didn't bother with installments/amortisation.

Incoming Fee (£) Wages (£)
Martinelli 6 20
Tierney 25 75
Saliba 27 40
Ceballos 0 60
Pepe 72 140
Luiz 8 120
Total 138 455

Outgoing
Cech 0 100
Lichtsteiner 0 90
Ramsey 0 110
Welbeck 0 70
Ospina 4 40
Koscielny 4+1 90
Bennacer 4 0
Asano 1 30
Amaechi 2,5 15
Thompson 3 15
Bielik 9,5 20
Jenkinson 2 45
Nwakali 0 15
Iwobi 28+6 50

Total 58+7 690
Net 80 (73) -235

(edit: why doesn't the spacing work?)
But with the wage bill you have to take into account
- Not on wage bill last year, sold now: Ospina, Bielik, Asanao, Nwakali
- Loan last year, now on our wage bill: Martinez, Chambers, Nelson

And I also think the youngsters like Amechi will not get 15k a week. I guess its more around 5k a week still £260.000 a year. Plus they will have other youngster who take their place and get a new contract.
 

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