tag:blogger.com,1999:blog-487486960623783530.post2408977966191758150..comments2024-02-29T09:58:18.342+01:00Comments on The Swiss Ramble: Cash City RockersThe Swiss Ramblerhttp://www.blogger.com/profile/11423088862174893998noreply@blogger.comBlogger68125tag:blogger.com,1999:blog-487486960623783530.post-50147787825411179822011-05-12T15:53:09.094+02:002011-05-12T15:53:09.094+02:00This comment has been removed by the author.Faiz Zenthttps://www.blogger.com/profile/15230748917420197368noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-25530475249909134672011-02-22T14:40:23.523+01:002011-02-22T14:40:23.523+01:00Great posts - like the in-depth financial reviews....Great posts - like the in-depth financial reviews.<br /><br />Would like to find out if the article in The Goon Blog that Arsenal have outsourced all the retail operations and they only collect a small percentage of the profit, is accurate.<br /><br />http://thegoonblog.com/2010/09/exclusive-new-exec-signing-signals-new-era-at-arsenal/<br /><br />If it is then it would be interesting to find out the percentage of the retail profit that Arsenal actually receive and the expiry date.<br /><br />If correct it would explain why the purely retail element is so low compared to other top 4 clubs. Would also explain why Arsenal have not aggressively opened retail stores world-wide. It would also mean that from 2012/3 the Arsenal revenue stream would rise dramatically and should be on par with other top clubs.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-87166100845398160422011-02-08T10:21:40.201+01:002011-02-08T10:21:40.201+01:00@maddashr,
My guess is that it's a combinatio...@maddashr,<br /><br />My guess is that it's a combination of trying to improve players, but also putting young players in the shop window, if the club decides to sell them. I write about Arsenal's policy in more detail here:<br /><br />http://swissramble.blogspot.com/2010/05/does-arsenals-policy-make-sense.htmlThe Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-87254000378950230792011-01-31T11:47:03.032+01:002011-01-31T11:47:03.032+01:00i've come across articles which states the ars...i've come across articles which states the arsenal encourages giving higher wages to youth players than other clubs and presently they have about 20 academy players out on loan.....most of the deals have clauses for the receiving clubs to pay wages...what do you make of the present situation..is this loan strategy provided to improve players or is it to reduce costs???maddashrhttps://www.blogger.com/profile/17086892495139858293noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-63331859533807065632010-11-29T14:34:47.637+01:002010-11-29T14:34:47.637+01:00Good article. Since the time this has been written...Good article. Since the time this has been written, looks like player sales will resume this summer, with either Bendtner or Van Persie auctioned off as this summer's cash cow, probably the former.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-16388833453524322922010-11-10T00:47:53.182+01:002010-11-10T00:47:53.182+01:00Great article, thanxGreat article, thanxAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-23110158294865157222010-10-24T23:56:09.527+02:002010-10-24T23:56:09.527+02:00swiss-you really do have too much free time! This ...swiss-you really do have too much free time! This analysis is almost wisden like now in its completeness. Anyway, to business. as others have said you must look at combined wages plus net player spend to see how team's should perform. spurs whilst being misers with the pay checks are super net spenders whilst arsene prefers to pay big wages and spread his risks. Still £130m invested in the team last year is not to be sneezed at even if he did then get £40m odd back.<br />what i think is interesting is gazadis has gone on the record as saying they will use some of the surplus cash from property and past player sales to fund the commercial income shortfall for the next 4 years until the emirates/nike deals can again be renewed. with somewhere between £20-40m of spare dough last year and tax refunds of £13m to come plus what £34m minimum from property this year and more to follow in 2012/3 its clear there's plenty of extra spending power coming wenger's way.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-65775311746558608032010-10-11T23:58:35.346+02:002010-10-11T23:58:35.346+02:00@Anonymous (5:23),
Yes, I hope to publish somethi...@Anonymous (5:23),<br /><br />Yes, I hope to publish something soon on United's results, as there are some interesting (not to mention complicated) aspects, which I know have left many fans confused.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-80147068772687760422010-10-10T17:23:24.652+02:002010-10-10T17:23:24.652+02:00Great article again. Wonder if you will write a si...Great article again. Wonder if you will write a similar thing about manchester united's figures released two days ago. They are the most complicated figures i think and you are probably the only one who simplifies things and writes neutrally on football finances which are complex. Have igh hopes from you on an article on the united figures.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-61541540817157313202010-10-08T21:01:32.613+02:002010-10-08T21:01:32.613+02:00It's crazy to look at the amount these clubs a...It's crazy to look at the amount these clubs are spending on wages and then expecting the ones near the bottom to put up a fight in the league. the difference is astronomical. kudos to birmingham for fighting up to become a top half team with such limited resources (relatively - don't get angry non-league fans!)<br /><br />Jude Ellery<br />editor, www.footballfarrago.comJude Elleryhttps://www.blogger.com/profile/01468148324501984439noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-64400426361361073862010-10-08T15:17:50.719+02:002010-10-08T15:17:50.719+02:00Brilliant article Swiss Ramble! I just found your ...Brilliant article Swiss Ramble! I just found your blog and as financial side of football interest me a lot I find your pieces excellent. As, in my opinion, football club should not be any different from any other business, FFP is very welcome improvement because it should even out the maladjustments in ownerships of clubs and rationalize clubs’ activities so that they are more self-sufficient (or very close to it).<br /><br />Arsenal has for a long time been a village club, when it comes to commercial income. Like you’ve said, the commercial revenue for Arsenal is significantly lower compared to its main peers in English and European football, and this is due to financing the new stadium. I feel that in few years of time Arsenal is going, or at least should, renegotiate or resign themselves from the old and dragging commercial revenues, as shirt sponsor deal is. Although, it might hurt for a year or so, it would still be much more beneficial to the club for a medium to long term. If I remember right, Chelsea did this a while back and has not regretted it.<br /><br />Another commercial boost what Arsenal might introduce in near future is the introduction of pre-season tours. Like you put it “he who pays the piper, calls the tune”, unfortunately/luckily so far the guy who calls the tune is a stubborn idealist with no recent history of real success (Don’t get me wrong here, I appreciate Wenger a lot for what he has done and he has been the right person for Arsenal during the years of big changes). But I would expect that the board/owners/sponsors/anyone would put more pressure to Wenger, in order to win trophies or achieve better sponsorship deals. As, it is highly unlikely, in the light of transfer history, that Arsenal would spend big bucks in players and that way increase their population and receive better sponsor deals. Therefore Arsenal should do better CRM to negotiate better deals to strengthen their position in the important markets for the future but also to receive an immediate effect of commercial income. One can not expect that sponsor money just runs in without showing your face to the people where the money comes from (or to wins trophies), therefore introducing pre-season tours are almost essential in my opinion.<br /><br />Although, being profitable via player sales is possible, as Wenger has shown, it cannot be healthy for a club like Arsenal in the long run. It hurts the brand and therefore damages the club’s future. Selling players, whether they are past their peek or disruptive in dressing room, does not send a strong/right signal to partner’s of Arsenal, meaning sponsors (no wonder sponsor deals are abysmal). A feeder club status is not something to strive for. As Arsenal’s objective is to be one of the top-8 clubs in Europe, which it already is when measured by almost every indicator, it should act like one. I am definitely not crying after big name signings or that Arsenal has let a big names go to another club but certain self-respect Arsenal should have, even more as the hunger years should be in the past.<br /><br />Also, adventures in property business should be put away after the completion of the remaining project despite how lucrative they are. That is because, property business is not the core business of a football club, and it consumes time from the management to do their main tasks, or increases operational costs of non-football side. <br /><br />Is there a site what collects yearly reports so comparison is possible or do you collect and read all the reports from every club? Meaning, where you get the information how well each club has done during their fiscal year? Does such site exist for continental clubs, as you refer to other big European clubs? <br /><br />VV - Finland<br /><br />Ps. Chamakh was not purchased during this summer, he was a free signing.<br /><br />pps. Now of to you ManC article.VV - Finlandnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-31700909493606997302010-10-07T21:56:23.980+02:002010-10-07T21:56:23.980+02:00Cash City Rockers was a fantastic article.Cash City Rockers was a fantastic article.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-41861821236066364712010-10-07T09:33:18.706+02:002010-10-07T09:33:18.706+02:00@Badgooner,
Unless Spurs and Liverpool are given ...@Badgooner,<br /><br />Unless Spurs and Liverpool are given interest-free loans by a wealthy benefactor, new stadiums must impact them from a financial perspective.<br /><br />I think you're absolutely right that there is a lot of room for growth in Arsenal's commercial operations. They have invested a lot in putting together a new structure, recruiting high calibre executives, but now it's time for them to start to deliver.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-72448847157833888402010-10-07T09:30:40.558+02:002010-10-07T09:30:40.558+02:00@Anonymous (2:11),
I'm not overly concerned a...@Anonymous (2:11),<br /><br />I'm not overly concerned about accounting trickery (from either the clubs or indeed UEFA). Compared to most businesses, football is relatively simple, so it should be fairly straightforward to review clubs' accounts.<br /><br />For example, I would not expect Platini's accountants to spend ages reviewing player valuations and associated amortisation, as these will be performed by the club's auditors. However, if a club did something blatant like re-assessing players' values or changing the amortisation policy, then that would be reviewed.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-75655509000787124932010-10-07T09:25:58.343+02:002010-10-07T09:25:58.343+02:00@Jason,
Thanks.
I've not seen any official f...@Jason,<br /><br />Thanks.<br /><br />I've not seen any official figures, but some people even talk about offers as high as £100m for the property.<br /><br />I'm with you. I always felt that it would have been preferable to sell to a property developer immediately, especially as the market was booming, so the club could have secured a good price. As you rightly say, this has been a huge drag on management resources and represented a major gamble.<br /><br />It has worked out well in the end, but 18 months ago the club was clearly very concerned that it could end in tears. Although the property development has significantly boosted revenue, the actual profits to date have been relatively small. Of course, there are still some gains to come, so we don't yet know the overall picture.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-73833147906025529952010-10-07T05:53:28.660+02:002010-10-07T05:53:28.660+02:00Informative read. Few queries here.
Will spurs and...Informative read. Few queries here.<br />Will spurs and Liverpool face the same financial stress as we are in when they build their new stadiums? <br />Regarding the t-Shirt sales, here in India, many people go for counterfeit merchandise made available by our gracious gulf neighbours. The reason is not thier cheap prices, but believe me or not, due to the lack of availability of the original jersey's. if you go to any Nike showroom, you would find plenty of ManUtd jerseys, personalised accessories,etc. But Arsenal jersey's are very rare to find. And if you manage to find one, you would get Walcott's 32 jersey or some old ones. If online shopping is the solution, then the currency conversion from Euro to Rupee makes them unaffordable. United have concentrated aggresively in the commercial oppurtunities available in Asia. They have sports bars, exclusive shops, and many more. Even Barca is following the same suite now.<br /> Coming to Arsenal TV, I don't understand why Arsenal is not going for a live 24*7 channel like its fellow competetors.Badgoonernoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-67850479109267192642010-10-07T02:11:05.613+02:002010-10-07T02:11:05.613+02:00Excellent article as usual. One point, though, tha...Excellent article as usual. One point, though, that's more political than financial. When you mentioned FFP, you said "Arsenal will have no problem complying with the new rules," I find it a little naive. Certainly, Arsenal *shouldn't* have any problems, but whether they actually find their path clear will largely depend on Platini's political manoeuvres and how closely Arsenal toe his line.<br /><br />Ultimately, whether a club is found to be complying with the FFP regulations will be entirely arbitrary, decided by accountants entirely controlled by Platini, because the fair value provisions are effectively unlimited in their scope. Any transaction may be up- or down-rated, with no formal structure, and no appeal. It raises the admittedly implausible prospect of a profit making club, with money in the bank, being excluded from European competition because Platini's accountants have decided that, say, their amortisation costs don't reflect a fair value, and should be increased. <br /><br />I find it hard to see FFP as anything other than a grab for control of the game by UEFA. The 'fair play' aspect is just an excuse.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-73639581411692028992010-10-06T18:49:41.539+02:002010-10-06T18:49:41.539+02:00Always fascinating reading your analysis. I have t...Always fascinating reading your analysis. I have turned a few of my friends onto this blog and they are equally avid followers now.<br /><br />Re the property side, I did a bit of digging last year and came to the conclusion, Highbury cost something like #220-230m to develop inc. interest rolled up on the dev. loan, so whilst they will turn a profit as you say, the key is how does that compare to the cash they could have received upfront in 2006 from a developer. That is really the benchmark against which any "success" needs to be viewed.<br /><br />I recall reading an article Keith Edelman did for some management periodical a few years back and he gave an idea of the offers, but for the life of me I can't recall what they were, but definitely below #50m I believe, which he felt was insufficient. Why he felt he was a better judge than experienced property developers I don't know, but there you go. Do you have any idea on what these figures might have been? <br /><br />Bear in mind had Arsenal gone done that route, it would have been cash in hand available to either reduce the stadium debt (the smaller shorter term bond for instance)or buy a couple of centrebacks and or a GK! They also would not have needed to find the additional max. #70m(I assume they got #25-30m in upfront buyer deposits) to finance the build out, which clearly drained the clubs resources and importantly diverted attention away from the other elements of the property portfolio such as Queensland Road which is at least two years behind schedule.<br /><br />Regards, and I look forward to your views on the latest trials and tribulations at LFC s well!Jasonnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-30903848206565922782010-10-05T11:07:01.582+02:002010-10-05T11:07:01.582+02:00thanks Swiss - it did seem a large loophool!
Will ...thanks Swiss - it did seem a large loophool!<br />Will be reading your City article later.<br /><br />mc5mu1Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-73400634672239667712010-10-05T10:53:07.772+02:002010-10-05T10:53:07.772+02:00@mc5mu1,
No, the property profits are excluded fr...@mc5mu1,<br /><br />No, the property profits are excluded from UEFA's break-even calculation, as they are not football related.<br /><br />On the assumption that you are a Man City fan (from your nickname), you may be interested to know that I believe that the Sportcity development will however be included, as this is an exception to this rule.<br /><br />I explain this in greater detail in an article I wrote today.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-82142435192931812142010-10-05T04:56:24.964+02:002010-10-05T04:56:24.964+02:00I have a quick question with regard the new financ...I have a quick question with regard the new financial rules. Arsenal's balance sheet has grown by nearly a couple of 100 million since 2000 and we have circa 130m of cash which will no doubt grow even more when properties (that have no loans against them) are sold. <br /><br />So what I'm wondering is this: When will we see the benefit of all that P&L? When will we be able to spend it? Presumably we won't. I mean for a start no doubt all things being equal we will make even more profit going forward and they'll NEVER be a chance of us spending what we have already made in future years. So my next thought is why haven't we used it seeing that in effect we are going to lose it? I mean fair enough it's still there (for now) but I'm cynically perhaps seeing that the shareholders have one eye on this pot of gold. & in contrast perhaps had we already spent some of this (instead of making another 60 odd million again this year we may well have won something over the previous few years.<br /><br />Something is not quite right with our financial business model in my mind and I'm not talking about the seemingly magnificent profit we make each season.JPnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-84385858561069213372010-10-04T18:30:56.701+02:002010-10-04T18:30:56.701+02:00Another good article.
Slightly off topic but am i...Another good article.<br /><br />Slightly off topic but am interested in the details about the 'property' side of the business and it's contribution to profits/turnover at Arsenal.<br />Is this allowed under the new UEFA rules?<br />Can clubs have other 'non football' parts to the club business that can contribute to the profits and possibly cover football expenses?<br /><br />Is it allowed in Arsenal's case as it's part of the move to the new stadium etc and another club couldn't just fold a property company or metals company into the football club to cover costs?<br /><br />thanks <br />mc5mu1Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-32430055135521336232010-10-04T18:16:08.350+02:002010-10-04T18:16:08.350+02:00@Limestonegunner,
The book is called "Pay As...@Limestonegunner,<br /><br />The book is called "Pay As You Play: The True Price of Success in the Premier League Era", written by Paul Tomkins.<br /><br />My piece is only a page about Arsenal, but there are some might fine other contributors, including Jonathan Wilson, Gabriele Marcotti, Daniel Taylor and Oliver Kay, commenting on their clubs.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-62611011310636064842010-10-04T18:12:27.182+02:002010-10-04T18:12:27.182+02:00@cecil,
Watch this space!@cecil,<br /><br />Watch this space!The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-40628579550362062242010-10-02T20:30:55.926+02:002010-10-02T20:30:55.926+02:00This is an astounding article and thoroughly deser...This is an astounding article and thoroughly deserving of praise. <br /><br />Many thanks for this intriguing read. <br /><br />My quibble with Wenger is his stubbornness in conceding defeat - he will not admit his experiment is not working on the pitch and refuses to supplement the core with necessary additions. <br /><br />We're not asking for £90 million quid to spent on 3 players - just for him to accept certain positions like the goalkeeper are fundamentally fucked and he just needs to buy a player, NOT stick with a recipe for disaster.Unknownhttps://www.blogger.com/profile/03849948072055118270noreply@blogger.com