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 21^st 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

	League	FA Cup	FL Cup	Europe
Arsenal	13	14	2	2
Tottenham	2	8	4	3

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

	Spurs	Arsenal	Arsenal	Spurs
2021-22			3	1
2020-21	2	0	2	1
2019-20	2	1	2	2
2018-19	1	1	4	2
2017-18	1	0	2	0
2016-17	2	0	1	1

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.

Grey Neutral Weekly: Arsenal’s fall, dementia’s rise and problems with mavericks

CHELSEA’s victory against a tepid Arsenal was relatively easy, but given the Blues have spent well over the past two seasons, and the Gunners clearly haven’t, the home side can be forgiven for looking lightweight. In the cold light of day, Arsenal’s board may have to admit to themselves they simply do not have the right manager or approach to player acquisition. By the time Arséne Wenger left the club, they were already drifting away from Champions League contention, but since then, they have fallen two notches in the hierarchy, from Europa League to nowhere – not even the Conference League. And they cannot blame a lack of spending – in the past four seasons, Arsenal have the second highest net spend at £ 326 million, a figure beaten only by Manchester United (£ 356 million).

Their gross spend for that period totals £ 425 million, somewhat higher than Liverpool and Tottenham and around £ 50 million less than the Manchester clubs. This summer, they have been Europe’s biggest spenders, but how long will they have to wait to reap the benefits? Getting it right in the market is not easy – Chelsea, for all their wallet power, have had a number of ill-judged signings in the Abramovich.

Arsenal currently look directionless, from the disconnect between fans and owner through to the team management. Against this backdrop, it is hard to see Mikel Arteta lasting too long at the Emirates. Once more the problem of ill-thought succession planning has reared its head, Manchester United have laboured through the post-Ferguson era, Arsenal have paid the price of hanging on to a coach who had been overtaken for too long.

Surely, it’s time to be more proactive about football and dementia?

Another week, another victim. This time, it is former Liverpool midfielder Terry McDermott who has been diagnosed with dementia. Last week it was Denis Law. It is becoming all too common. The list goes on: Bobby Charlton, Jackie Charlton, Peter Bonetti, Nobby Stiles, Martin Peters, Billy McNeill and of course, Jeff Astle and many others. Surely, it is time to screen footballers well before they hang their boots up to monitor their neurological state?

Dr. Michael Grey from University of East Anglia, responding to the guidelines on heading the ball that limit players to 10 “higher force” headers a week, asked how this would be enforced: “The recommendations make no distinction based on gender despite growing evidence that women are more susceptible to head injury than men. There are biological differences between male and female in both structure and physiology that warrant a more considered approach.” Dr. Grey pointed out that the new guidance appears to be restricted to adults and lacks any provision for children where heading the ball in training has been discouraged by the FA, albeit not enforced, and heading the ball in match play is still permitted. “This is problematic due to the fact that the brain of a child is at significantly greater risk to brain injury than that of an adult. It is time to consider an outright ban on heading the ball for younger children – both in practise and match play, complete with an enforcement strategy.”

Admittedly, dementia used to be something was dismissed as part of old age, but we live longer than ever before and industrial disease has been identified across many types of work for years. Thumping your head has never done anyone any good, so it is time that safety measures should be implemented. Consider that companies spend lots of money or ergonomic furniture and training to ensure their staff are comfortable and safe. Football has to do likewise and closely observe their players in each and every game. It’s not rocket science, but it is surely sports science.

Why mavericks don’t get picked

Rod Liddle, writing in the Times at the weekend, recalled a time when some leading “flair” players just didn’t get picked by England. Jack Grealish, considered to be the latest in a long line of flamboyant individuals, was under-used in Euro 2020 and some considered it a slur on the £ 100 million player. Alan Hudson, one of the so-called “mavericks”, was capped twice, and others of his kind were also left counting their international appearances on one or maybe two hands: Peter Osgood (4), Stan Bowles (5), Rodney Marsh (9), Frank Worthington (8), Charlie George (1) and Tony Currie (17). Going back further, there was Len Shackleton, the “clown prince of soccer” who won five caps but no domestic honours. Fine players all of these chaps, but it is no surprise that an England manager in the 1970s would not call upon them in the trenches. Firstly, these players were unreliable and some had poor discipline records, secondly, England managers did not have the luxury of day-to-day contact with them, hence their window of influence was limited. Back in the days of Osgood, Hudson et al, Sir Alf Ramsey, for example, would not see his squad too often. He had to pick the men he knew would do their best for him. The most successful teams are not always the most exciting, hence only one of the aforementioned players won a league title (George, 1971) and between them, they won six trophies. Mavericks may have lifted us off our seats – and still do – but not every manager wants one in his team. Sir Alf and the Don certainly tried to steer clear.

@GameofthePeople

Photo: Alamy