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Arsenal and Aston Villa’s
financial reports posted this week show very contrasting fortunes for the two
clubs.
Aston Villa, relegated
from the Premier League at the end of the 2015/16 season, posted a fall in
turnover of £6.9m on the previous year (2015) to £108.8m, in their latest
accounts for the year ending May 31 2016.
The fall, according to the
club, was primarily attributed to a reduction in their share of revenue from
the FA Premier League’s broadcasting agreements as a result of final league
standings which saw them finish bottom with just 17 points and relegated to the
Championship.
The accounts also showed
the further impact of that poor season with an operating loss before
exceptional items of £1.6m.
Exceptional items amounted
to £79.6m, consisting of charges for the impairment of tangible fixed assets
and intangible assets of £44.8m and £34.8m respectively. The impairment charges increased the
operating loss before interest and tax to £81.3m.
By comparison, Arsenal
showed turnover from football increased to £191.1 million (2015 - £158.0
million) with growth in broadcasting distributions at the start of a new three
year revenue cycle for the Premier League and an increased share of UEFA
Champions League market pool.
The financial results for
the six months ending 30 November 2016, showed Arsene Wenger’s shrewd
management of the club’s playing squad brought profits on the sale of players
to £6.3 million (2015 - £0.3 million) whilst the group has no short-term debt
and its cash reserves, excluding the balances designated as debt service
reserves, amounting to £100.5 million (2015 - £135.9 million).
Commenting on the results
for the six months, the Arsenal's Chairman, Sir Chips Keswick, said: "The
financial results for the first half of the year are robust.
“As expected increased
Premier League broadcasting revenues have had a direct impact on player costs
both in terms of transfer prices and player wage demands.
“Whilst these are the
market forces that have contributed directly over time to the success of the
Premier League I would sound a note of caution in light of the very material
contractual commitments to future wages that clubs are taking on.
“We have invested in our
own playing squad at record levels. It has also been exciting to see more young
players emerge from our Academy.
“We are very focused on
producing a positive and exciting closing run and with the support of our fans
I believe together we can achieve a successful and memorable end to the
season."
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