Big loss for Arsenal underlines challenge to restore Gunners’ status

ARSENAL went into 2021-22 knowing they were not going to benefit from European competition for the first time since 1995. Finishing eighth for the second successive season, the club is still struggling to find consistency in the post-Wenger era. The latest financial report from the club emphasises that the Gunners’ continue to lose ground.

In 2020-21, Arsenal made a loss for the third consecutive campaign and the deficit increased to £ 127 million (pre-tax), up from £ 54 million in 2020 and £ 32 million in 2019. This was partly due to exceptional expenses of £ 39 million, but it also demonstrated the impact of covid-19. Since 2018-19, the last “normal” season, Arsenal have seen their revenues drop by 17% and between 2019-20 to 2020-21, they fell by 5% to £ 327.6 million. It is estimated the pandemic may have cost Arsenal around £ 80 million.

In the past five years, Arsenal’s position among the elite (aka the big six) has come under threat and they are now sixth in terms of total income and have been overtaken by their fierce rivals Tottenham. 

The club rearranged its debts and repayed some bank debt, which incurred a big chunk of exceptional items in the form of refinancing break costs. Arsenal rely on significant funding from KSE UK Inc (owned by Stan Kroenke) and they have a £ 70 million working capital facility with Barclays Bank. Their net debt has increased by 84% to £ 199 million due to a big reduction in cash.

On the pitch, while Arsenal have won four FA Cups since 2014, their league form has declined and from being a Champions League regular, they have spent five seasons outside the top four and four years in the Europa League. Rather clumsily, they went out of the Europa League at the semi-finals stage in 2020-21 to Villareal. Coach Mikkel Arteta still divides opinion among fans, although generally, he is popular and people appear to be buying into his “project”. His win rate, though, is 53.8%, lower than his predecessor Unai Emery, and there will be no silverware in 2021-22. Arsenal could still qualify for next season’s Champions League.

  • Revenues down 5% year-on-year
  • Pre-tax loss totals £ 127.2 million, net loss £ 107.3 million
  • Only Chelsea have posted a bigger loss in 2020-21
  • Wage-to-income ratio up to 73%
  • Profit on player sales drops by 80%.

Arsenal’s European run benefitted their broadcasting revenues, which increased by 55% to £ 184.4 million. Absence from Europe will obviously hit the club’s income in 2021-22, hurting almost as much as the ignominy of exclusion. Given the current climate, it was no surprise the Gunners’ matchday earnings fell dramatically from £ 78.7 million to just £ 3.8 million. With the return of crowds, Arsenal should see this revenue stream head towards the £ 100 million mark once more in the current season.  Commercial income fell slightly to £ 139.5 million in 2020-21, but was at a historic high level.

Arsenal’s profit on player sales fell by some 80% to £ 11.8 million, a far cry from the £ 120 million they made in 2018 and far less than the average over the past five years (£ 42 million). The club’s transfer market activity was relatively muted, their biggest signing being Atlético Madrid’s Thomas Partey, who cost £ 45 million, and Lille’s defender Gabriel, who was signed for £ 23 million. They sold goalkeeper Emiliano Martínez to Aston Villa for £ 20 million. Gross spend, according to Transfermarkt, was £ 77.4 million, the seventh highest in the Premier League, while their net outlay was £ 60 million. The club’s accounts show £ 115 million in additional player registrations. 

Even though revenues were 5% lower in 2020-21, Arsenal’s wage bill rose by 6% to £ 238 million, representing 73% of income. To the credit of the players, they agreed to a 12.5% pay cut during the peak of the pandemic. At the same time, the club made 55 people redundant, including their popular mascot, Gunnersaurus Rex. Since 2016, the Gunners’ wages have gone up by 22%, far less than the growth rate at the other big six clubs. For example, Tottenham’s salaries have grown by 105%, Manchester City’s 80% and Liverpool’s 51%. Interestingly, directors’ pay more than doubled in 2020-21. 

The financial news will do nothing to increase the popularity of the current regime at Arsenal, especially as they announced a 4% increase in season tickets for 2022-23 just before releasing their financials. However, Arsenal’s current malaise is a temporary thing and they will be bounce back. Whether they can become more successful depends on a more dynamic transfer policy that identifies talent at the right price as well as a longer-term view around developing a team that can be more competitive. A big change is also needed in the relationship between the club’s owners and the fans. If these factors can be improved, then Arsenal’s Emirates Stadium will be a happier place.

North London clash is still the capital’s biggest derby

TOTTENHAM HOTSPUR play host to Arsenal on January 16, a clash of two teams still trying to find their most comfortable place in the third decade of the 21st century. Both made hard work of their FA Cup third round ties, Spurs sneaking through against Morecambe by 3-1, but Arsenal were knocked out by Championship side Nottingham Forest. For Arsenal, it means their last chance of silverware will be the Carabao Cup, but for Spurs, the FA Cup may be their sole hope of a major prize if they fail to turnaround their semi-final against Chelsea in the same competition.

Spurs versus Arsenal is, arguably, the top London derby. It’s not the closest meeting as Chelsea and Fulham are just 1.6 miles apart and West Ham and Leyton Orient, who are unlikely to meet in league competition, have 1.7 miles between them. Tottenham’s new stadium is 4.1 miles from the only marginally less impressive Emirates. But there’s real venom in clashes between the two North London teams, regardless of how they are faring.

At the moment, both teams are performing reasonably well, probably better than envisaged last summer. Arsenal, after a grim first couple of weeks, found some rhythm and seem to have some talented young players – Emile Smith Rowe and Bukayo Saka, for example – who could form the backbone of the Gunners’ team for a few years to come. Being absent from European competition may have helped them, but they certainly look better than they have for a while. 

Trophy haul of the North London duo

LeagueFA CupFL CupEurope
Arsenal131422
Tottenham2843

Nevertheless, it should be noted that for all Arsenal’s progress, they still struggle to beat any of the top teams such as Liverpool, Manchester City, Chelsea and Manchester United. Of their six defeats, five have been at the hands of these teams, the only other defeat was at Brentford on the opening weekend of 2021-22. They did beat Spurs 3-1 at the Emirates.

Tottenham, meanwhile, are beginning a new era under Antonio Conte. Spurs have not been beaten in the league under the Italian, but five of his eight games have been at home. Like Arsenal, their record against the top clubs is patchy, although they did score a victory against Manchester City in the season’s first round of matches.

Spurs went into the season under Nuno Espirito Santo, who they hired from Wolves. The appointment didn’t work, unfortunately. They also endured a summer in which their star striker, Harry Kane, was being courted by Manchester City. Kane was persuaded to stay, but Spurs may now regret hanging onto him as the optimal time to sell might have been before 2021-22. Kane has had a mixed campaign and has scored just four Premier League goals. There are now renewed rumours about Kane’s future and it won’t be a surprise if he leaves Tottenham in the summer. They might not get the fee they could have commanded in July 2021.

Kane is considered to be “one of us” by the Spurs loyalists and he’s as close as the club comes to having a local lad in their line-up. Kane is from Walthamstow, which is closer to the Tottenham stadium than Arsenal’s ground. Spurs’ current first choice XI includes players from France, Brazil, South Korea, Denmark, Wales, Argentina and Welwyn Garden City. While some might claim this is a symptom of the modern game’s globalisation, it is often forgotten that the Tottenham double winners of 1961 included only three players who came from London. Similarly, Arsenal’s double side of 1971 only had Charlie George who could be considered “local”. And way back in time, the Preston North End league champions and cup winners had two Preston-born men in their line-up, along with a third from nearby Fulwood.


These examples go someway to diffusing the argument that the current model of elite football has driven any feeling of genuine local rivalry out of the game. Can teams comprising hired guns from all corners of the globe feel the same way as home-grown players who live within a goal-kick’s distance from the stadium?

Recent past meetings

SpursArsenalArsenalSpurs
2021-22   31
2020-2120 21
2019-2021 22
2018-1911 42
2017-1810 20
2016-1720 11

What makes local derbies special is not necessarily the players, it is the fans. It matters to them to beat their local rivals and at grounds like the Emirates, songs like “stand up if you hate Tottenham”, seem to be more important than ever before. It does seem to define the fans love for their own club as much as their “hatred” of the opposition.

The fact is, Arsenal need Tottenham more than they will ever care to admit, and vice versa. Local rivalry is a cause for motivation, it keeps clubs “on their toes” and acts as a form of competition outside the normal terms of engagement.  Would Tottenham have built such a statement arena if Arsenal had not constructed the Emirates? Is it not a case of keeping up with the Jones’?

Fans rarely forgive players who defect from one side of North London to the other. Sol Campbell’s transfer is a case in point, Spurs fans will now spit on the floor at the mere mention of his name. Only seven others have played for both clubs, including legendary goalkeeper Pat Jennings, William Gallas (also Chelsea) and Emmanuel Adebayor.

For the past five seasons, Tottenham have finished above Arsenal, but since the Premier League was formed, Arsenal have been on top in 22 years to Spurs’ seven. Chelsea, whose rise pushed Arsenal off their London leadership perch, have finished ahead of both clubs 14 times, including the past three years.

Tottenham have won both league meetings with Arsenal at their stadium, but they have an awful record at the Emirates. There’s plenty at stake in the 2021-22 clash as places are still up for grabs in the race for a Champions League spot. Arsenal are currently in fourth position, four places above Tottenham. One thing is certain, whatever the outcome, the game will be dissected afterwards and the outlook for both sides will be closely examined. Both desperately need a good result, so there will be shortage of passion and that’s why Tottenham versus Arsenal is an attraction for the neutral.