Have Arsenal Dropped The Ball At The Wrong Time? Unai Emery’s Transfer Woes Explained

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Premier League

Have Arsenal Dropped The Ball At The Wrong Time? Unai Emery’s Transfer Woes Explained

Tough Times

In today’s market, money is needed to compete. Without the financial backing of the owner, Arsenal, despite their status as a top club, is financially stricken when it comes to acquiring players. Additionally, Unai Emery’s public comments that Arsenal are not in a position to sign any players on a permanent basis this month may have come as a surprise to some fans. However, it’s something that has been known about for some time within football circles.

Agents have been made well-aware that any potential incomings at the Emirates this month would have to be on loan. This with talks over a potential deal for Denis Suarez continuing.

Without question, every football fan who daydreams about becoming a club owner does not imagine themselves to be like Stan Kroenke. Roman Abramovich or Sheikh Mansour would be the model for most: a money-no-object competitor with a ruthless intolerance for mediocrity. The club would come before everything else. Additionally, the very best players would fall all over themselves to come and be a part of the excellence. Nothing would stop the constant stream of quality making its way to the team. Not small trifling issues like money left in the club accounts or those pesky Financial Fair Play restrictions.

There is quite a big and usually overseen reason as to why Arsenal has been struggling to compete. It does not concern the players, but the ownership of the club. The fact is that Arsenal are a club that operates to a self-sustainable model. The club spends what it makes. The club doesn’t get any help from owner Stan Kroenke. The value is of his wealth is to be around £7 billion.

The Winners

A study conducted by football finance expert Swiss Ramble ( @ SwissRamble ) earlier this month showed the vast difference between how much money owners of the Premier League’s top sides have put into their clubs since 2008.

Unsurprisingly it’s Manchester City, backed by Shekih Mansour bin Zayed Al Nahyan, who have benefited most from owner financing – with a staggering £1.275 billion being injected into the club by Shekih Mansour.

That’s way higher than the second highest, which is Chelsea, who have had £520 million given to them by Roman Abramovich. Then it’s Manchester United (£318m), Liverpool (£257m), Leicester (£205m) and Sunderland (£189m).

What About Arsenal?

Arsenal meanwhile, are one of just two clubs who have not had a single penny of owner financing over the past decade, along with Middlesbrough.

In that time the Gunners have spent £754 million. This with players purchases (£236m net) and loan and interest repayments (£278m) making up most of that number.  All of which has come from club operations. Additionally in October, managing director Vinai Venkatesham confirmed that self-sustaining model would remain in place,. However, Kroenke had taken full control of the club having bought out Alisher Usmanov’s 30 per cent stake.

With Kroenke not putting money in, Arsenal have been reliant in the past on Champions League money. However, going two seasons without featuring in Europe’s elite competition is now having a major impact on finances.

The American draws perhaps the most public hate of any in the Premier League. This makes him an easy target. His gaudy, wide lapel pinstriped power suits, his Hercule Poirot mustache, and his absence from most matches are to catch by the fans. As an American, he is treated with extreme skepticism by the fans. Fans don’t see him as a person that understands football, and certainly not one that understands Arsenal.

They will also point to his American sports franchises. Their relative lack of success shows proof that he is not up to the challenge of carrying one of England’s most storied clubs forward. Every day brings a fresh barrage of fans to social media.  Most at wits end about how this man, this terrible man could be ruining their club so much.

Another reason for the hate towards him by Arsenal faithful is because of his ‘mega’ investment in building a new stadium for the Rams, for which he had reportedly contributed £1.25bn.

A Self-Sustaining Model?

Recent analysis of Arsenal’s financial position for 2017/18 by the Arsenal Supporters’ Trust estimated that match-day, broadcast and commercial revenue fell by about £40m on the previous year – with £35m of that attributed to non participation in the Champions League.

Additionally, the analysis also showed that at the same time there was a major increase in the wage bill from £200m to £235m. This included pay offs to Arsene Wenger and his staff. Amortization costs (cost of buying players spread over length of their contract) also increased significantly – by £19m.

The AST estimated that the increase in costs and reduced revenue added up to an operating loss of £44m for 2017/18 . A figure that was offset by the sales of players such as Alex Oxlade-Chamberlain, Theo Walcott and Olivier Giroud. In the summer just gone, Arsenal brought in five new signings at a cost of around £70m. That followed on from splashing out a club record £56m to bring in Pierre-Emerick Aubameyang last January.

And with very little money expected to come in for player sales, the AST predicted the club would make an operating loss of around £60m in 2018/19. This with the wage bill running at unprecedented levels following Mesut Ozil’s mega deal which was signed in January. And not to say the least about recent captures of Aubameyang, Hernikh Mkhitaryan and the five summer additions.

Bloated Wage Bill

That bloated wage bill – one of the highest in Europe – also leaves the club very little wriggle room in terms of complying with the Premier League’s financial fair play rules. Which currently allow clubs to increase their wage bill by £7m a season.

That figure can increase by other revenue streams such as commercial deals. However, Arsenal’s commercial income has flat-lined in recent years as previous deals have come towards an end.

However, there’ll be a small sigh of relief to be overseen in the summer. The new commercial deals with Adidas and Emirates are due to kick in. Also, the potential of high earners such as Aaron Ramsey, Petr Cech and Danny Welbeck to come off the wage bill.

From Arsenal’s ‘self-sustaining’ model and the analysis put forward by the Arsenal Supporters’ Trust, Unai Emery will be given a budget of no more than £50m to spend ahead of his second season in north London, which could increase subject to player sales.

Waves of Internal Conflict?

Arsenal’s head of scouting, Sven Mislintat, is considering exiting the club. This putting Arsenal in deep waters. Reports by various media outlets indicate he has fallen out of grace with the director of football, Raul Sanllehi. Several disagreements over the Gunners’ organizational structure and transfer strategy may be the cause.

Mislintat was responsible for the signings of Pierre-Emerick Aubameyang. In addition, his former team-mates Henrikh Mkhitaryan and Sokratis Papastathopoulos, Konstantinos Mavropanos, Lucas Torreira, Bernd Leno and Matteo Guendouzi. Mislintat’s future will no doubt come up during a meeting between Arsenal fans and the club’s leading officials. This, ahead of Saturday’s derby with Chelsea.

The club’s current state of turmoil has caused widespread consternation among fans. The fans fear for the worst as Kroenke’s reluctance to dip into his own pocket to fund player transfers is the only thing restricting Arsenal from competing with the elite.

The question is whether Kroenke, on the other side of the Atlantic, will actually care. From the evidence we have seen until now, the chances are he won’t. Even if fans find their voice, he is bound to not listen.

 

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