Moneyball: Arsenal 2023/24 Financial Results

This is a new series at The False Nine where we explore the financial aspects of the beautiful game. We're kicking off the series with a review of Arsenal's 2023/24 Financial results.

Arsenal Holdings Limited has reported its financial results for the year ended 31 May 2024, showing a marked improvement in profitability alongside record revenue. The club posted an overall pre-tax loss of £17.7 million, a substantial improvement from the £52.1 million loss in 2022/23.

This turnaround was driven by a return to the UEFA Champions League and a strong Premier League campaign, which together propelled total revenue to a record £616.6 million (up from £466.7 million). In the sections below, we break down the key metrics – revenue growth across streams, profit and loss drivers, player trading impact, commercial performance, cost management, and regulatory compliance – comparing 2023/24 to the prior year and highlighting major changes.

The 2023/24 season saw Arsenal’s revenue soar by over 32%, reaching an all-time high of £616.6m. This sharp increase (approximately £150m year-on-year) was largely attributable to the club’s return to the UEFA Champions League after a six-year absence, as well as on-pitch success domestically (a second-place finish in the Premier League). All major revenue streams – matchday, broadcasting, and commercial – enjoyed significant growth. The Champions League run (reaching the quarter-finals) boosted broadcasting and matchday income, underlining the competition’s importance to Arsenal’s finances.

Key components of the record revenue include:

• Matchday Revenue: Arsenal hosted 25 home men’s first-team matches in 2023/24 (Premier League plus cup and European fixtures), up from 22 in the prior season. With Emirates Stadium operating at near sell-out capacity (average attendance ~60,095), matchday revenue climbed to £131.7m from £102.6m the previous year. This £29m increase reflects additional Champions League home games and sustained fan demand. (Arsenal Women’s matches at Emirates also drew record crowds, though their £3.0m in revenue is a smaller contributor.

• Broadcasting Revenue: The return to Europe’s top competition had an even larger impact on media income. Broadcast revenues rose to £262.3m, up from £191.2m in 2022/23. Arsenal earned significantly higher UEFA distributions from the Champions League compared to the Europa League payouts of the prior season. In addition, a higher Premier League placement (2nd vs. 5th) would have yielded increased domestic TV payments. The net effect was a £71m year-on-year boost in broadcasting income, underscoring how critical Champions League qualification is for the club’s media revenue.

• Commercial Revenue: Arsenal’s commercial performance was outstanding, reflecting an aggressive growth strategy in its second year. Commercial and sponsorship revenue jumped to £218.3m from £169.3m in 2022/23 – roughly a 29% increase. This surge was led by major partnership deals: the club renewed and extended its shirt sponsorship with Emirates and secured a new training ground naming rights deal with Sobha Realty, alongside numerous secondary sponsorships at improved valuations. The club also reported strong merchandise and retail sales, outperforming ambitious targets, aided by a summer 2023 preseason tour in the USA which further boosted commercial and retail income. Arsenal’s strategy of leveraging its on-field resurgence and global brand translated into robust commercial growth across kits, partnerships, and events.

Overall, the record £616.6m revenue in 2023/24 is clear evidence of the club’s growing financial strength under improved sporting fortunes. With this return to Europe’s elite, Arsenal’s revenues are now back among the top tier of English clubs, even approaching Manchester United’s (£662m) and exceeding Liverpool’s (£594m) recent figures.

Despite the record revenue, Arsenal still recorded a bottom-line loss in 2023/24 – but a much smaller one than the previous year. Pre-tax losses narrowed to £17.7m from £52.1m year-on-year, a £34m improvement. Notably, the prior year’s loss included a one-time exceptional cost of £18.1m for player contract impairments (writing down player values). Excluding that exceptional charge, Arsenal’s underlying loss in 2022/23 was around £34m – meaning the club essentially halved its like-for-like deficit in 2023/24. This improvement reflects the huge revenue growth described above, which outweighed substantial increases in costs.

On an operating level, the club was actually profitable before certain expenses. Arsenal generated an adjusted operating profit from football of £138.2m in 2023/24 (up from £116.1m the prior year), highlighting a strong core business performance. After including profit on player sales (covered below), Arsenal effectively broke even on a day-to-day football basis. However, several cost factors ultimately swung the result to a net loss:

• Player Amortisation and Depreciation: Arsenal’s heavy investment in new players led to a sharp rise in amortisation (the annual accounting cost of transfer fees). Amortisation and impairment of player registrations was £171.1m, up from £139.1m in 2022/23. This £32m increase reflects the record transfer spend (e.g. acquisitions like Declan Rice, Kai Havertz, Jurrien Timber in summer 2023). High amortization expenses significantly eroded the operating profit. (For context, Arsenal added £255.7m worth of players to the squad during the year, bringing the total book value of players to £486.6m.

• Wage Costs: The wage bill surged by £93m (detailed in the next section), further adding to expenses. While revenues grew 32%, total costs grew as well, and in some areas even faster (wages +39%, amortisation +23%). This dilution of the revenue gains kept the club in a slight loss.

• Net Finance Charges: One of the decisive factors was a steep rise in finance costs. Net interest and finance charges tripled to £18.4m in 2023/24, from £6.2m the year before. Higher borrowing levels (to fund transfers and operations) and rising market interest rates drove this increase. Additionally, the club had to account for £6.5m of “notional” interest due to instalment payment structures on transfers (an accounting requirement new to this year). These finance charges effectively tipped the club into the red.

After factoring in all costs, Arsenal’s loss before tax was £17.7m. There were no exceptional or one-off charges in 2023/24 (versus the prior year’s £18.1m hit), so this loss reflects the ongoing cost base relative to income. The improvement from 2022/23’s loss indicates a healthier trajectory. Indeed, post-tax loss (after a small tax charge) was similarly £19.9m, which the club notes is its “fifth consecutive year of losses”, though now much reduced. In summary, booming revenue brought Arsenal close to profitability, but heavy player investments, a soaring wage bill, and financing costs kept the bottom line slightly negative..

The transfer market activity in 2023/24 had a notable impact on Arsenal’s finances. In addition to strengthening the squad, player trading contributed significantly to the year’s results through profits on outgoing transfers. Profit on disposal of player registrations (player sales) totalled £51.1m, a dramatic rise from just £10.7m the previous year. Including loan fees of £1.4m (virtually flat year-on-year), total player trading profits were £52.4m in 2023/24 versus £12.2m in 2022/23. This nearly £40m increase in sale profits was a key factor in shrinking the overall loss.

Major sales during the period – such as academy graduate Folarin Balogun’s transfer to AS Monaco and the departure of midfielder Granit Xhaka – helped Arsenal realise substantial gains. These profits arise because many departing players had low remaining book values (often being homegrown or long-depreciated), so their sale fees translate mostly into accounting profit. The £52m player trading gain provided an “essential financial boost” to the club, effectively offsetting a large portion of the wage and amortisation increases.

That said, Arsenal management acknowledges that the transfer market climate has been challenging, limiting even greater profits. The club noted that “player trading profits continue to have a significant impact on overall profitability” but that its ability to realise profits was “adversely impacted by market conditions with reduced overall liquidity as clubs’ acquisition budgets continued to be impacted by financial pressures”. In other words, despite the sales made, Arsenal might have sold additional or higher-value players were the market (especially outside the cash-rich Premier League) more favourable. Many European clubs have tightened spending, so offloading squad players for strong fees remains a challenge.

On the buying side, Arsenal’s investment was at record levels. As mentioned, the club spent approximately £255.7m on player purchases during 2023/24 – among the highest outlays in Europe – bringing in top talent to compete at the highest level. This aggressive spending, fully backed by ownership, does not immediately hit the profit/loss statement (except via amortisation), but it does underline the owners’ support and the club’s ambition. Importantly, when combined with the £52m of sales profits, Arsenal nearly balanced their transfer-related activity from an accounting perspective (i.e. the gain on sales offset a large portion of the annual amortisation cost of new signings). Player trading thus remains a crucial lever in Arsenal’s financial management: selling players at the right time provides vital income streams to complement matchday, TV, and commercial revenue.

One of the most striking year-on-year changes in Arsenal’s finances was the explosion in wage costs. The club’s wage bill (including player and staff salaries) jumped to £327.8 million in 2023/24, from £234.8 million the previous year. This £93m increase — nearly 40% — reflects major investments in the squad and infrastructure:

• Player wages: A significant portion of the rise was due to new contracts and signings for the men’s first team. During 2023/24, Arsenal added several high-profile players on lucrative contracts (e.g. Rice, Havertz) and rewarded existing stars with improved deals. The club confirms the increase was “mainly driven by investment in player wages” across both the men’s and women’s teams. Success on the pitch often comes with a cost in the wage column, as Arsenal’s ambitious push to compete at the top required commensurate salary commitments.

• Staff and infrastructure: Arsenal also expanded its non-playing staff, particularly in the commercial and operational areas. The financial report notes increased commercial and operational headcount contributed to higher costs. This aligns with the club’s growth strategy – for example, building out marketing, retail, and content teams to capitalise on the global fanbase (which in turn supports revenue growth). While this adds expense, it can be viewed as investment in capacity for future revenue.

Despite the steep rise, Arsenal’s wage bill remains under reasonable control relative to income. Thanks to the surge in revenue, the wage-to-revenue ratio stands around 53% (£328m wages on £617m revenue), which is comfortably within sustainable limits. The wage/revenue ratio is well below UEFA’s recommended upper cap of 70%, indicating the club has headroom before hitting any cost control thresholds. In other words, while the absolute wage figure is high, it is proportionate to Arsenal’s record income. This suggests the club has successfully scaled up its revenues to support a larger payroll.

However, the absolute increase of £93m in annual wages undeniably raises the club’s break-even bar. Arsenal now carry a much higher fixed cost base each year; to avoid reverting to losses, they will need to sustain comparable revenue levels (i.e. remain in the Champions League and continue commercial growth). If revenues were to dip (for instance, by missing out on Champions League qualification in a future season), the current wage bill would pose a risk to profitability. The club must therefore manage contract renewals and new signings prudently going forward, ensuring that on-pitch performance (and the revenues tied to it) keep pace with the rising player remuneration. For 2023/24, the gamble paid off: the wage investment helped drive success on the pitch, which in turn helped drive revenue to a record high. Arsenal will aim to maintain this virtuous cycle, balancing competitive wages with financial discipline.

As noted earlier, Arsenal’s financing costs spiked in 2023/24, which had a material effect on the bottom line. Net finance charges were £18.4m, up from £6.2m in the prior year. This jump was due to a combination of factors:

• Increased Borrowings: The club’s net debt rose as ownership provided funding for transfers and operations. Arsenal confirmed that its parent company (KSE UK, owned by Stan Kroenke) injected funds to “underpin the club’s transfer activities and for working capital” as needed during the year. Some of this funding likely came in the form of loans or credit facilities, incurring interest. The reliance on owner funding meant Arsenal was less constrained in the transfer market, but it did introduce more interest expense (even if at a favourable rate as a related-party loan).

• Interest Rate Environment: The general rise in interest rates over the past year increased the cost of servicing debt. Any variable-rate loans or renewed credit lines would carry higher interest, contributing to the increased finance charges.

• Accounting for Transfer Instalments: A new accounting impact was noted – Arsenal had to book £6.5m of notional interest because many player transfers were structured with payments in instalments. Under accounting rules, the deferred payments for transfers are recorded at present value, and as time passes a “finance charge” is imputed on those payables. This £6.5m was non-cash interest, but it appears in the accounts and added to the finance costs (with no equivalent charge in the prior year).

The club’s year-end cash balance improved to £66.8m (from £42.8m at 31 May 2023), reflecting strong operational cash inflows. It’s worth noting that a portion of season ticket renewal money for 2024/25 was received just after the fiscal year cutoff (in June 2024), meaning cash would have been even higher if measured a few weeks later. Arsenal’s liquidity is sound, although the cash on hand is also needed to cover ongoing costs and scheduled transfer fee instalments. The club’s net debt position (debt minus cash) isn’t explicitly stated in the summary, but given the owner’s funding and increased cash, Arsenal likely remains on relatively stable footing.

Crucially, KSE’s backing has provided financial stability. The Kroenke ownership group has demonstrated willingness to fund Arsenal’s investment (spending over £250m on players in each of the last two seasons). Much of the financing cost on the accounts is effectively interest paid (or accrued) to the owners or related parties, as opposed to bank debt. There is ongoing scrutiny under new rules about related-party loans, but even in a stricter scenario, Arsenal’s position remains manageable.

In summary, Arsenal’s cash flows in 2023/24 were robust thanks to the revenue boom and player sales, allowing the club to end the year with a higher cash reserve. The club did take on additional debt (largely owner-financed) to enable its spending, resulting in higher interest costs. Moving forward, the challenge will be to manage these finance costs – ideally reducing them by paying down expensive debt – so that they don’t eat into future profits. The positive is that Arsenal’s underlying operations are now essentially self-sustaining, barring the discretionary choice to spend big on transfers. With continued Champions League participation, the need for heavy owner funding (and its associated interest) may lessen.

Despite posting another small loss, Arsenal comfortably complied with all UEFA and Premier League financial sustainability regulations for 2023/24. Both governing bodies have rules intended to prevent clubs from overspending: UEFA’s Financial Sustainability rules (formerly Financial Fair Play) and the Premier League’s Profitability and Sustainability (P&S) rules. Arsenal’s results fell within the acceptable thresholds of these regulations, and the club has publicly affirmed its compliance.

Under the Premier League’s P&S rules, clubs are generally permitted to lose up to £105m aggregated over a three-year period (with certain adjustments and exemptions) without breaching limits. Arsenal’s losses for the past three seasons are well within this range when allowable deductions (such as academy, women’s football, COVID impacts, etc.) are considered. In fact, analysts consider Arsenal to be in a very strong position with regard to cost control measures. The substantial revenue increase and relatively moderate wage ratio have given Arsenal plenty of buffer under the league’s limits.

UEFA’s newer financial rules cap club spending on player wages, transfers (amortisation), and agent fees at 70% of revenue (with a gradual phase-in: 90% in 2023/24, 80% in 2024/25, and 70% thereafter). Arsenal’s current spending is well below these thresholds – in 2023/24, wages accounted for ~53% of revenue, and even adding amortisation pushes the ratio to roughly 81%, which is within the transitional 90% limit. The club’s 53% wage ratio is “well below UEFA’s 70%” ceiling and one of the healthiest in the league. This indicates Arsenal can comfortably meet UEFA’s requirements, even as the rules tighten. Additionally, the ownership’s equity injections into the club (if structured as equity rather than debt) help underwrite any losses, which UEFA allows up to €60m over three years if covered by owners’ funds.

In practical terms, Arsenal’s compliance reflects prudent financial management alongside owner support. The club has matched its ambitious spending with revenue growth, and crucially, it has not endangered its future with the recent investments. Consecutive Champions League qualifications (for 2023/24 and 2024/25) further solidify the financial base, reducing the risk of a shortfall that could trigger regulatory issues. Arsenal’s directors have expressed confidence that the club will continue to adhere to all financial fair play requirements, and the 2023/24 figures back that up.

Arsenal’s 2023/24 financial results paint a picture of a club reaping the rewards of on-field progress while keeping an eye on sustainability. Revenues hit unprecedented levels – a testament to the value of Champions League football and a revitalised commercial operation – and the operating profit from football activities was strong. Although a £17.7m loss was recorded, this was a far smaller deficit than in recent years, achieved in spite of significant investments in the squad and infrastructure. Profits from player trading played an important role in balancing the books, and the ownership’s backing provided financial flexibility to spend on talent. The wage bill’s steep rise underlines Arsenal’s commitment to competing at the highest level, but thanks to booming income, the club’s wage-to-revenue ratio remains healthy. Higher interest costs were one of the few dark clouds, though these stem from the very strategy that has returned Arsenal to competitiveness.

Crucially, Arsenal have managed this growth within the bounds of financial regulations, ensuring no breaches of Premier League or UEFA rules. The club’s finances are on a much stronger footing than a few years ago – Arsenal are now firmly back among the top revenue-generating clubs in the world – which bodes well for continued investment in the team. Going forward, the focus will be on maintaining Champions League qualification and managing costs so that the increased revenues can translate into sustained profits. If 2023/24 is any indication, Arsenal are moving in the right direction: a club “back at the top table” financially, balancing sporting ambition with fiscal responsibility.

Sources:

• Arsenal Holdings Ltd – Financial Results for Year Ended 31 May 2024 (official club statement)

• Arsenal Holdings Ltd – Annual Report and Financial Statements 2024 (Companies House filing)

• Evening Standard – Simon Collings interview with Kieran Maguire

• OneFootball (EPL Index) – Arsenal’s Financial Report Shows Record Revenue but Rising Costs