arsenal finances: "and those who danced were thought insane"
kojodinho - talkingOfArsenal.com
in transfers, arsene knows, club finances
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A bit of a strange title that one, but bear with me and it will all (hopefully) soon make a little more sense.
"Events, dear boy, events", was how Harold McMillan responded when, as Prime Minister, he was asked what kept him awake at night.
Out of the so-called top-four premier league clubs, it is a well known fact that Arsenal spend the least on transfers, although we somewhat match (but only just) the other clubs when it comes to player wages.
That we haven't won any silverware for three years, is seen by some, both fans and news media alike, as just rewards for keeping tight rein on the club purse.
The last three or so years has seen the big spenders, basically Manchester United and Chelsea, winning trophies and on the face of it, that would seem to be the way to go. That, however, is not the full picture, as there have also been big spenders in last season's summer transfer window, the likes of Manchester City, Tottenham, and Liverpool amongst others who all spent between £40-£50m and came away with little to show for it.
In addition, when you take into account the level of debt of Manchester United, when you consider Chelseas dependence on the philanthropy of Abramovitch, when you look at Liverpools reliance on two American owners engaged in open warfare whilst trying to negotiate the building of a brand new stadium (a high-risk venture in itself) in these times of financial uncertainty, you begin to see just how relatively stable Arsenal as a club are.
Many think Chelsea to be a 'special case' however few contemplate that were Abramovitch to lose interest in Chelsea, or worse, were the charity of the billionnaire to be lost overnight for any kind of unforeseen <cough>polonium<cough> reason, the West London club would likely sink faster than a pre- second World War Zeppelin filled to the rafters with lead.
The fact is, out of the top four, Arsenal's finances are looking by far the healthiest, and least susceptible to "events".
That Arsenal's directors (and Chairman) come from a finance background is a fact that has been lost to many, including those in the printed media who deride Wenger for not splashing out on big players, in order that they can increase sales of their newspapers with fantastic headlines.
Without question, current expenditure on signings and wages by some Premier League clubs is not sustainable in the long term. That few newspapers care to point out this fact, is down to the fact that news stories of that nature simply don't sell newspapers. The vast majority of fans, some of Arsenal's included, only care for silverware - few consider the consequences were their clubs financial outlook to take a turn for the worse, and Leeds United supporters can readily vouch for that.
In a recent article, The Guardian reported that both Manchester United and Chelsea together owe approximately £1.5bn in debt, in Uniteds case to hedge funds and financial institutions, and in Chelseas case to "no external debtors", or spin-doctor speak for 'Abramovitch'.
That is a most stupendous level of debt, especially increasing in significance when their respective reported net profits are brought into the equation. It is debt which will last for many years, if not decades. And were the luck of the draw of the premiership not to shine kindly for one or two seasons on any club (not an impossibility) with such large outstanding debt, who knows what net effect that would have on the bottomline, or on the club's creditors or both.
For now, Arsenal (with Wenger at the helm) remain one of the few clubs who are making a real concerted effort at balancing their books, managing growth within the clubs means, and building a solid foundation for the club going forward, instead of joining the crowd and spending whatever finances are available on big name signings in the hope of winning silverware for a season.
And for that, many in the news media as well as a few ignorant Arsenal fans see fit to doubt the integrity of Le Boss and the Arsenal management.
"And those who danced were thought insane, by those who could not hear the music".
An apt quote from Angela Monet.
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