Podolski Deal Done? Failings off the pitch have cost Arsenal dear…..

Firstly, The Daily Mail report that Lukas Podolski is ours after Fc Koln agreed to accept Arsenal’s offer of £10.9 Million, they suggest that as soon as the Bundesliga finishes, he’ll be an Arsenal player.

All the other newspapers report that Manchester City are ready to offer RvP £220k a week in attempt to prise him away from The Emirates. Well, they can whistle, he’s going nowhere, certainly not to them!

On to todays post:

Malcolm Glazer bought Manchester United for £790-million which many financial observers thought was too high a price, and even if, according to accountants, Manchester United’s valuation is speculative. It seems clear that the main value to Glazer is in the brand itself, especially in the growing Middle Eastern, Asia and North America, as the surest way to make money.

The brand is a football club’s greatest underused asset. Gates revenues provide a steady and consistent income, but clubs make additional money from three areas that are directly related to the strength of the product on the pitch and the brand itself.

–       TV and broadcasting rights;

–       Merchandising;

–       Sponsorships.

And each of these needs to operate in an international marketplace. Clubs might be based in London, Manchester, Liverpool, Milan, Munich, Madrid or Barcelona, but they are exposed to hundreds of millions global football fans.

The main way that they do this is through TV and other remote communications, including the internet, social networks and mobile phones. TV has been the fuel of football’s commercial development since the inception of Premier League in 1992. For example, Arsenal’s “Unbeaten Season” financial results in 2003/04 season included broadcasting income of £59.8-million compared with gate receipts of £33.8-million. The reality is clear that TV money matters much more to the club than money through the gate. And TV money is the reason why European competition has become such a necessary part of the running of a football club.

Arsenal’s relative lack of success in Europe has cost them financially and missing out of CL Cup qualification in 2012/13 will certainly cost Arsenal dear to the tune of loss of income varying from £45-million to £50-million.

Arsenal also lacked behind in the development of the dedicated TV channels like Real Madrid, Barcelona, Manchester United, Liverpool and Chelsea. The boundaries between TV and internet are blurring, and in future years we will watch more TV on our computer screens, on tablets and on smartphones.

Arsenal’s investment in its website and the dedicated Arsenal TV channel should be increased to cater for a global audience, and to market its brand name and to spread its popularity world-wide.

The Emirates Stadium naming rights guaranteed £90-million over 15 years (2006 to 2021) and shirt rights for 8 years (2006 to 2014). Will Emirates Airline be willing to re-negotiate this shirt naming rights?

Arsenal’s shirt manufacturer is Nike and the deal with Nike in 2004 will raise £55-million over 7 years (2007 to 2014).

Before we moved to Emirates for the 2006/07 season, let’s compare Arsenal FC ranking from 2000/01 to 2005/06 season in Table 1.

2005/06 season marked the end of the French Spine, Arsene Wenger’s 2nd Arsenal team; and the rebuilding of Fabregas Era, Arsene Wenger’s 3rd Arsenal team.

Premier League clubs had overtaken Italian and German football clubs as money from the new TV contract came streaming in to boost their revenues.  Premier League revenues were further boosted by the new TV rights contract, expiring in 2012/13; and with growing Middle Eastern (plus Asian interests), TV revenues may set to boost further in the forthcoming TV rights contract.

During the Highbury Era, Arsenal FC is just a 2nd tier club and cannot compete against those Top-8 marquee clubs. This is simply due to Arsenal FC failing to expand their global appeal as in the case of Manchester United, Liverpool and Chelsea. Chelsea FC, since 2003/04 season shot into the rank of “marquee club” due to Roman Abramovich and Peter Kenyon in maximizing their global market appeal. This is most telling as appended below are my compilations for those readers who love to crunch numbers.

A few definitions as indicated below:

Data for “Deloitte Football Money League” were obtained by using “Google Search”. Revenues indicated are solely from football related businesses comprising gate collections, merchandise sales, commercial rights and sponsorships and do not include revenues generated from property development and sale of players.

Table 1: Revenues increase from 2001 to 2005/06 in -million

2005/06 2001/02Increase

242.6 ….. 229.5 … 13.1 … 06% … ManU

221.0 ….. 143.4 … 77.6 … 54% … Chelsea

177.4 ….. 141.4 … 36.0 … 25% … Arsenal

176.0 ….. 154.6 … 21.4 … 14% … Liverpool

Table 1 clearly indicates Arsenal FC increases its revenues is simply due to the successes of the French Spine on the pitch and not additional revenues from global merchandise sales like Manchester United and Liverpool FC with its vast appeal in the Asian market, and of course, revenues generated for summer overseas tours.

I believe that it is Arsene Wenger’s “euro-centric” policy during summer pre-season training (refusing to tour America or Asia) that so hampered Arsenal FC’s global appeal during the halcyon days of The French Spine as the “Smoking gun” why the mediocre 25% increase in revenues, in contrast to that devastating Chelsea FC 54% increase in revenues for the same period with their 1st League title in 2004/05 after 50 years. Not that in 2001/02, Arsenal FC and Chelsea FC revenues generated are almost the same.

A nice contrast amongst the Top-5 from 2005/06 to 2006/07 on the impact of Emirates Stadium in our first season is tabulated below:

Table 2: Revenues increase from “Highbury” 2005/06 to “Emirates” 2006/07 in -million

2005/06 2006/07Increase

242.6 ….. 315.2 … 72.6 … 30% … ManU

221.0 ….. 283.0 … 62.0 … 28% … Chelsea

177.4 ….. 263.9 … 86.5 … 49% … Arsenal

176.0 ….. 198.9 … 22.9 … 13% … Liverpool

104.5 ….. 153.1 … 48.6 … 47% … Tiny Totts

Table 3 below clearly proved that the failure on the pitch with 6 no. trophyless seasons had reduced our football related revenues generated. From 2006/07 to 2010/11, revenues had stagnant and declined greatly from 2009/10 to 2010/11 season in contrast to that 49% increase from 2005/06 to 2006/07 season.

“Year-on-Year” increase is to compare previous season revenues with current. E.g. Arsenal’s 2005/06 and 2006/07 season are €177.4-million and €263.9-million. FY2006/07 “Year-on-Year” (Y-o-Y) increase is €86.5-million or 49% from FY2005/06 (FY = Financial Year).

Table 3: Arsenal FC Revenues from 2006/07 to 2010/11 in -million and Year-on-Year Increase

Season-milY-o-Y Increase / (Decrease)

2005/06 … 177.4

2006/07 … 263.9 … 86.5 … 49%

2007/08 … 264.0 … 00.1 … 0%

2008/09 … 263.0 … 01.0 … 0%

2009/10 … 274.1 … 11.1 … 4%

2010/11 … 251.1 … (23) … (8%)

Table 4: Revenues comparison from 2006/07 to 2010/11 in -million

Rank 2010/11 2006/07Increase / (Decrease)

(01) … 479.5 … 315.2 … 128.5 … 37% … Real Madrid

(02) … 450.7 … 290.1 … 160.6 … 55% … Barcelona

(03) … 367.0 … 315.2 ….. 51.8 … 16% … Manchester United

(04) … 321.4 … 223.3 ….. 98.1 … 44% … Bayern Munich

(05) … 251.1 … 263.9 … (12.8) … (5%) … Arsenal

(06) … 249.8 … 283.0 … (33.2) … (12%) … Chelsea

(07) … 235.1 … 227.2 ……7.9 ….. 3% … AC Milan

(08) … 211.4 … 195.0 … 16.4 ….. 8% … Internazionale

(09) … 203.3 … 198.9 ……4.4 ….. 2% … Liverpool

(10) … 202.4 … 114.3 … 88.1 … 77% … Schalke 04

(11) … 181.0 … 153.1 … 27.9 … 18% … Tiny Totts

(12) … 169.6 … 104.0 … 62.0 … 28% … Abu Dhabi City

It is a devastating verdict on the failure of Arsene Wenger, Hill-Wood and Ivan Gazidis to grow the revenues of Arsenal Holdings during the “Emirates Period from 2006/07 to 2010/11”. Contrast it to that 25% growth from the “2000/01 to 2005/06 Highbury Period” when the French Spine was playing and winning silverware every season except 2005/06.

Since we moved to The Emirates in 2006/07, our revenues grew only by 4% from 2006/07 to 2009/10 and decline by 8% from 2009/10 to 2010/11. This clearly indicates Arsenal FC has no global appeal to generate the equivalent amount of commercial rights and sponsorships like those marquee clubs in Real Madrid, Barcelona and Manchester United.

Otherwise, how to explain that with a brand-new 60,000-seater stadium and the world highest ticket prices, our aggregated revenues only grew by 4% from 2006/07 to 2009/10 season and decline by 8% from 2009/10 to 2010/11 season?

Table 4 compares Arsenal FC with those marquee clubs and their 2010/11 “Deloitte Football Money League” ranking in (). E.g. (3) indicates Manchester United was ranked No. 3 from 2010/11 season.

(* Note that Manchester City was out of Top-20 in 2006/07 season and their 2006/07 revenue is assumed to be matching to that of their 2007/08 season with  €104-million revenues.)

Written by Merlin96

192 thoughts on “Podolski Deal Done? Failings off the pitch have cost Arsenal dear…..

  1. ArsenalDK says:

    Good morning everyone. Jamie Sanderson tweets: “Arsenal will continue negotiations with Cologne today over Lukas Podolski. #AFC convinced they will get the their man.”

  2. rico says:

    Very good post Merlin, albeit it’s all a bit over my head 😉

    ‘For example, Arsenal’s “Unbeaten Season” financial results in 2003/04 season included broadcasting income of £59.8-million compared with gate receipts of £33.8-million’

    Are those figures just down to us being at Highbury, a much smaller ground so the turnstile income would be much less?

  3. Merlin96 says:

    yes, Rico.
    The gate revenues collected is simply due to 38,000-capacity Highbury in comparison to 60,000-capacity Emirates.

    That is why hill-Wood and Fizsman were correct to move Arsenal to Emirates to generate more gate revenues, more executive boxes plus Food & Beverage sales at Emirates.

    TV broadcasting incomes are due to success on the pitch, CL Cup, FA CUp finals plus prize money for finishing Top-2 from 1997/98 to 2004/05.

  4. rico says:

    Morning Lee & Merlin

    I was surprised that when Setanta went belly up, Afc didn’t negotiate a deal with Espn or Sky for their own channel…

  5. Lee says:

    RVP interview with Bert Maalderink (reporter from Dutch BBC equivolent NOS)…
    BM: The question on everybody’s lips is: ‘What is he [RvP] going to do next year?’

    RvP: Yes, we will see.

    BM: Are you struggling with this?

    RvP: No, not at all. I am doing fine, enjoying everything, training well, I am fit – knock on wood (he taps the microphone) – and all is going well.

    BM: But what about people saying: ‘It’s a bit of a shame – Van Persie, who is head and shoulders above everything, playing in an Arsenal side which is not quite the very best of Arsenal sides ever’?

    RvP: Well that’s funny, isn’t it? People consider this Tottenham team as the best ever and our team as the ‘worst’ (he makes a quotation mark with his fingers) ever, and we beat them 5-2: it is a bit crazy sometimes…

    BM: Does that nag/hurt you a bit?

    RvP: Sorry – what do you mean?

    BM: Because I know why this is: everybody regards Arsenal as a higher-up team, and Tottenham, yeah – well, a bit lower-down, and when they are doing OK and Arsenal are doing less, well then people will say: oh how well Tottenham are doing, and Arsenal are performing less (below par).

    RvP: Yeah, yeah, that is correct. Expectations are very high at Arsenal: we have a gigantic, beautiful, big stadium, a great number of fans, very beautiful history and people expect that we perform well right now – in the present.

    BM: Do you think you [Arsenal] are performing well?

    RvP: No, it can always be improved, we go for the highest achievable. In the last few years, as a club, we have not achieved that, so in that respect it has not been good enough.

    BM: Are you somebody who will try his utmost with this club to still achieve success?

    RvP: Well yes, I have been there eight years of course, and I am proud of that, and at the end of the season we will calmly sit down with the manager and the chairman [I assume he means Gazidis] and we will have a ‘nice cup of coffee’ (in Dutch: ‘dan gaan wij een bakkie doen’, which could not be more Dutch if you tried), all of us together, nice and cosy (in Dutch: ‘gezellig’ referring to a very friendly/informal sort of meeting/conversation).

    BM: Because I feel you have become a ‘club player’ over there…

    RvP: Yes, I am a real Gunner, which goes without saying, I have been there eight years, I love this club, that is no secret, and that will always stay like that.

    BM: Therefore, would leaving now be ‘blasphemy’?

    RvP: Well once again, at the end of the season, we are going to have a calm/relaxed talk about it, and then we are going to talk about a number of things, which I do regularly with the manager, and because of that occasion [contract talks] the chairman will be there as well.

    BM: You are going to make the final decision then [at that meeting]?

    RvP: Dan gaan we een bakkie doen: that is when we are going to have a nice cup of coffee.

  6. devilgunner says:

    Merlin96……you are the tops. Good article. Had to go through it around three times to have a clearer picture.

    you said….”TV broadcasting incomes are due to success on the pitch, CL Cup, FA CUp finals plus prize money for finishing Top-2 from 1997/98 to 2004/05.”

    That proves that what we have been saying all along…..that even winning the FA Cup or littlewoods cup is invaluable to the club as it generates more money. So much for the 4th place is like a trophy in itself. We would have been in a much healthier state if we had won at least around 3 or 4 domestic cups since 2005. Imagine that.

    So why cant Arsene and the board???

  7. allezkev says:

    Morning Gooners.
    Morning Rico.
    Great post.
    Only read half of it. I want to read it a couple of times to take it all in. Great effort Merlin.
    Getting tied into those long deals has cost the club millions.
    But they needed the dough for the stadium move.
    Needs must!

  8. rico says:

    Lee, i don’t think he is going anwhere either, podolski in the bag hopefully, now get JV, Jussi, M’vila/Nzonzi and away we go… 😉

  9. ArsenalDK says:

    Thanks for not forgetting me rico 😉

    VP has to stay, he wants to stay, but will need reassurement from Wenger, that he is going to invest. Our first big signing could well be Podolski! 😀

  10. Merlin96 says:

    Morning all.

    Hi D_G…..well…like an indulgent parent, Hill-Wood & Co let their naughty child of whizz-kid to continue his experimental “Youth Policy” till he produces a title-winning side by 2013/14.

    Least we forget, our property development and player sale incomes glossed over their failure to grow the revenues from teh football side.

    Just watch our football revenues jumped in FY2011/12 to teh recent Asian tours….plus more sponsorships signing up with Arsenal.

    Guess that Gaizids & Team will start justifying their obscene salaries if FY2011/12 football revenues grow to €300-million revenues or more.

    And yes, Arsenal FC needs to become a domineering side by 2013/14 to match the revenues stream of Real Madrid, Barca and ManU.

    And the new kid on the block in Abu Dhabi City will most likely match Arsenal 2010/11 with about €250-million revenues generated for FY2011/12 due to “financial doping” from Abu Dhabi Sheikh and his associated state-owned companies.

  11. rico says:

    Morning devil & AK

    I don’t really understand all the sponser deals etc and the money earned through various ‘stuff’..

    🙁

  12. allezkev says:

    Morning Coach.
    Last lot in the post y’day.
    Podolski sounds promising.
    Lee, liked that about RVP talking to Wenger. Maybe Robin is taking a leaf outta Dein’s book.

  13. Merlin96 says:

    Kev,

    In 2003/04, Arsenal Holdings PLC had no choice as it was a high-risk project and we were only a “2nd Tier” European club then; and not a global brand-name like Manu and Liverpool then.

    if not for the Global Credit Crunch 2008, I believe that Highbury Square will be completely sold out by 2007/08 and we will be in better shape than now!

    We have the beneift of hindsight, but Edleman, Hill-Wood and CO did not.

    Kroneke and Usmanov?
    They spotted that our global brand-name is virtually “undeveloped”; and both of them spotted a “gold-mine” as it may very well worth an extra €100-million revenues per annum if we continue our summer tours…plus with a growing brood of worldclass youngsters with high image values in the advertising industry like Va Va Voom or David Beckham….

    And if Robin van Persie starting to win awards, accolades and a marquee players durign Euro2012 and Brazil WC2014……image the fees and merchandise sales that Arsenal will command in Asia, Middle East and North America!

    Plus if Va Va Voom decided to return to Arsenal on a 2-year cotnract in 2012/13 season……

  14. rico says:

    Chesney

    “Ideally, we’d finish third and Chelsea would finish fourth.”

    He knows how to hate the Yids 😛

  15. stevepalmer1 says:

    Morning all,
    Well wrote Merlin, i must admit i don’t understand a lot of it, but i know a hell of a lot of work went into it bloody good effort mate.Lot of news out about the Pod, don’t know much about him but looks like we won’t have to wait long to start learning about him. If the figures are true that i have been reading about a possible move for Van Persie, makes me think he will be sold, so lose one and buy one and make a profit sounds like an Arsenal deal.

  16. rico says:

    I’m not fussed if that a n other isn’t Goetze either Lee…

    I’b be happy if it was but as long as who ever we get wants to be at afc and give their all, that’ll do for me…

  17. rico says:

    Park and Chamakh will be gone, that will give us RvP, Podolski (if reports are true) & Campbell – we may need another 😉

  18. Lee says:

    I think I read that Lille wanted Park and we nicked him off their toes….and they have still got an interest in signing him, so maybe a deal involving hazard? I can dream….. 😉

  19. Scott From Oz says:

    Mancini is quoted as saying he’d be interested in RVP IF he was leaving.
    Next sentence reads….”I don’t think he will be leaving Arsenal”.
    I am not suggesting Mancini has inside information.
    I AM suggesting that Citehs interest is a media beat up…..what a shock.
    Evening all.

  20. rico says:

    That is a big dream Lee…

    I also read an interview from Park saying he needs to be playing football and will look to leave in the summer – looks like he has sold the shirts he was bought for and offski he will now go… Feel sorry for him too…

    Chamakh, well he’s not interested in playing for us is he, he’s another Torres, doesn’t want the ball and i wonder if he just doesn’t like the physical game in the PL and he’s scared of injury…

  21. rico says:

    Hi Scott, Citeh’s interest goes back to last summer, prob just the media trying to wind up the arsenal faithful, won’t work though eh 😉

    Steve, it does open the door for Bendtner, but that door has a sign on it:

    EXIT 🙂

  22. devilgunner says:

    Seems as if Bale did another dive. Is he competing for the British team in the diving olyimpics???? TV replays suggest only little contact.

    ABS MP …..club profit and loss is of concern to us. It might shed some light on the dealings of the club. The more profit the club does the more questions will be asked if we get left behind in transfers.

  23. alan b'stard M P says:

    Hi Rico

    Yes but we have no control, unlike Barca, where it’s membership driven and members own profits

    Oh, Slightly off topic but!

    Band of Joy 1968

    * This song is also known as ” Adriatic Sea View” or “SeaView”*
    This is probably one of the rarest songs you will ever hear. It was ONLY released on a promo tape that circulated in the Midlands in 1968.

  24. Scott From Oz says:

    Steve,he can have anyone that’s chasing the dollars-we don’t want them.
    Much rather guys who have Arsenal at heart.
    The hard part is knowing before a club comes waving the cheque book,I guess.

  25. devilgunner says:

    In other words……lets rename the Emirates…..THE MANCINI STADIUM. Or BARCA stadium……seems as if both of them are paying for it.

  26. potter says:

    Wold like to comment Merlin but will not be able to give your post the attention it deserves until I get back from work , It is very comprehensive. Just as a byline however , Isn’t Kroenke tied up in sports T.V marketing in the U.S. perhaps that has been his long time goal after all.

  27. devilgunner says:

    We need a ref who loves Arsenal then. But then…..that’s as common as the DODO bird. Or white elephants these days.

  28. W.A.T.H says:

    Did you say lennon is out Lee or Lemons…. I though that shit down the road were full of lemons……!

    Morning all, to the far away Oz chaps being a good evening to you lads…!

  29. rico says:

    still nice to see what is going on though alan….

    wonder if Nike will continue the kit deal, or will we get a better offer elswhere….

  30. alan b'stard M P says:

    The Emirates ” is the sponsor’s name only. Ashburton Grove can become ” Mancini Stadium ” if he wants to sponsor us, which I doubt
    Nobody should be too emotional about ” the Emirates “

  31. alan b'stard M P says:

    devilgunner

    True, but what can we do. The company has a duty to shareholders at law, not supporters

  32. rico says:

    Cheating little turd i say, he’ll get found out though devil, he’ll get a ‘label’ and refs will finally wake up…..

    Hopefully when they play Everton this weekend…

  33. W.A.T.H says:

    Greetings all………..

    Get it right Rico it was “Mega Man Flu” and I think I have survived but I am told it was so bad it’s taken down elephants….!

    Am lots better now Dev thankfully….!

  34. stevepalmer1 says:

    Welcome back Wath, heard nyou had been infected by a Tottenham virus nasty little buggers but i see you also kicked them in the teeth. 🙂

  35. Scott From Oz says:

    It takes a lot of balls for a ref to label a player a cheat,and by carding someone for diving,that’s effectively what he’s doing.
    Any red would want to be very,very sure of themselves.

  36. Lee says:

    WATH, welcome back my man….Rico wouldn’t understand the “mega-man flu”….your lucky you pulled through it!! 😉

  37. devilgunner says:

    A Yid Virus???? Or was it a Scum from the Slum Virus???? Knocked down elephants you said. Hmmmmmmm. Must have been terrible then.

    I heard that the antidote was quite a good one then. Was it a Redknapp fumble mumble jumble????? Or a five level lasagna??

  38. Scott From Oz says:

    Devil,I lay on the lounge,watch Tele,whinge to my wife and basically sulk….isn’t that what we all do???

  39. W.A.T.H says:

    You know what those women are like Lee us blokes just moan and groan all the time and we get told we make to much fuss but luckily I survived….. A mixture of GG and Johnny Walker gold got me through I’m pleased to say……. How you doing….. Have we signed anyone then or what…?

    Great article Merlin… highlights how badly we’ve done off the pitch in the last 5 years and how we have stagnated while others have done very good deals with various companies and sponsors…! We are so lagging behind on that front.

  40. W.A.T.H says:

    Not just the results Lee but the attitude and effort shown is whats pleasing….! for me i can just about handle the loosing if we get stuck in and show up and at least put in a shift so that for sure has put a smile on me face the last few games… Now to just keep up the momentum…!

    Catch a yid month i reckon it is……

  41. rico says:

    What also makes the difference is playing TV central and not at Lb, and for all Gibbs frailities, he’s come back well….

  42. rico says:

    They have Everton away, Stoke at home then the Chavs away…

    Guess they might get a point from Stoke 😉

  43. stevepalmer1 says:

    Wher’e on a roll Wath, reeling in the yids slowly but surely, and i hav’nt given up on second place yet either, all teams have a bad spell we just have to make sure we don’t have one. thats all, Players will start returning from injury hopefully a plus. I am now looking at the possibility of Jack and the Ox in midfield, possibilities of Santos on the wing Jenkins running his arse off, things are looking up getting quite excited.

  44. rico says:

    Can’t see us getting second Steve, that would need a big fall from Utd and they won’t i’m sure – this is when Fergie gets the best from his players, i hope they go on and win the PL, rather that the rich kids….

  45. Micko says:

    Morning all,
    What a post, made me realise I should’ve stayed on at school and not left at 16.
    Things are slowly changing, wengers been told he can no longer spend all pre-season in Austria anymore, we were in China last year and Nigeria is also on the horizon, the board are finally copping themselves on.
    Great news on Podolski if true.
    Rico, cancel the bedbath, seems wath has made a miraculous recovery.

  46. devilgunner says:

    2nd is a big ask SP. If we had collected maximum points from B’Burn away, Bolton, Wolves, Swansea and fulham away that would have made it easier as it would have given us a further 13 points and would have put us only two points behind Manure and 4 behind shitty with us having to play shitty and the top two against each other. But we dropped too many silly points through our carelessness and I think that 15 points is too big a mountain to climb. 3rd is much more reachable this season.

    I would like to be positive as you are, but see it a bit difficult.

  47. rico says:

    I reckon you could be right Micko, I really do – if all this Podolski stuff is true, we aren’t going to be hanging around….

    Maybe AW learned from our start to this season, any signings need a pre season, not join after three games and expect them to perform miracles….

    Still, 31st could be good for a bargin 😉

  48. Micko says:

    rico, time flies especially if your a pilot.

    Anyone watch messi last night, he re-wrote the record books, first player to score 5 goals in a champions league game, and with 10 minutes to go he was defending in his own half chasing the ball down for the team, what a player, he’ll go places.

  49. rico says:

    It sure does devil…

    Cesc Fabregas has finally had a hair cut and a wash and shave by the look of him… That greasy look just didn’t suit him……

  50. allezkev says:

    Just re~read Merlins piece.
    TV money is more important than gate receipts.
    But TV is not interested in broadcasting from an empty stadium with no atmosphere.
    It’s a quit pro quo.
    They’ll always need the fans.
    No fans, no specticle…
    If Kroenke is the ‘Hot Shot’ businessman he is portrayed, then he should re~vamp the business side of the model, and quick, as it seems that there is no growth in incomes at the club.
    Tours are vital. Wenger, it seems, has finally been dragged kicking and screaming into that realiasation.

  51. W.A.T.H says:

    Who’s this Poodolski fella then………………….??

    😀

    Bedbath………. I think that was me drowning in GG Micko 😉

    Ice….. kinky Rico……..

  52. devilgunner says:

    I am off not mates. Time togo. Maybe I will see you later on this evening…..after screwing some yid necks and pluck their feathers. We need to destabilse their fan base and fill their minds with negative thoughts. It is infective and will surely hit the players minds with doubt. The more we do it the more it will transfer to their club.

    cu mates.

  53. devilgunner says:

    Wenger, it seems, has finally been dragged kicking and screaming into that realiasation.

    Sir AK……I will raise my hat to that quote. It will make it into the top three of HH I am sure.

    Off now.

  54. rico says:

    😛 Wath…

    Have a good day Devil, catch you later….

    Fido needs a run so i’m off for an hour or two….

  55. allezkev says:

    But once again, i have to point at the Board.
    They have allowed Wenger too much say on things outside of his remit.
    That policy has seen a worrying stagnation of income stream and partly led to the need to sell to compensate.
    A change in policy at the top and a Board management that actually manages should hopefully see Arsenal able to close the gap on the mega~earning clubs above us.
    Clubs that are more savvy in the ways of marketing and who notably INVEST IN THEIR TEAM.

  56. allezkev says:

    Tea break over.
    Gotta go.
    Good to have you back Wath.
    Top of the morning and the rest of the day to you Mick.

  57. W.A.T.H says:

    Be careful out there AK 😉

    Those few days extra off will hopefully allow us fresh legs for monday night and get over a few niggly injuries as well..!

  58. W.A.T.H says:

    I still say we need a lump in midfield… M’Vila or Vertonghen would be proper and then Gotze along with Podolski and we’re pretty sorted once we then get rid of all the deadwood and the crap…!

  59. Micko says:

    Lee, its up there with the Chamakh deal, only he cost us nowt.

    Kev, so basically absolute power corrupts……..

    Newcastle don’t worry me, we always do well against them at home,score goals for fun, its away where we sometimes come unstuck.

  60. DutchGooner10 says:

    Afternoon Gooners/Rico,

    WATH great to have you back. Our elephant in the old China cabinet.

    Merlin top post. A large chunk of growth/brand value/revenue income does come from a non-loyal club basis. It comes from general football interest relatively related to performance and human capital within a squad. Exam. Barca and Madrid. Arsenal’s failings have left us stuck in Red Oceans. While clubs like Chelski or Citeh moved themselves into Blue Oceans.

    Red Oceans are all the industries in existence today – the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of product or service demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities or niche, and cutthroat competition turns the ocean bloody. Hence, the term red oceans.

    Blue oceans, in contrast, denote all the industries not in existence today – the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored.

    The cornerstone of Blue Ocean Strategy is ‘Value Innovation’. A blue ocean is created when a company achieves value innovation that creates value simultaneously for both the buyer and the company. The innovation (in product, service, or delivery) must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market.

  61. Merlin96 says:

    Kev,

    Arsenal FC has legions of diehard fans as it is sitll a “local club” in Islington.
    Therefore, Kroenke had calculated correctly that Emirates will not play to an “empty” stadium with 40,000+ fans still on the waiting list.

    What Kroenke is doing right now is to get more sponsorships and more exposures in Asia like Manchester United are opening ‘Red Devil” stores all over Asia and like Liverpool got that lucrative STANCHART sponsorhsip deal.

    Arsene Wengre wasted those halycon years of the French SPine by stikcing to EUrope and refusing to tour Asia for more than a decades…….otherwise, who knows, Arsenal Holdings plc may have plenty of “Armoury” stores all over Asia…with our annual football revenues approaching at least €300-million revenues right now.

  62. Merlin96 says:

    In some cases, the annual
    financial statements do not cover a whole season, but
    are for the calendar year, in which case we have used
    the figures for the most recent calendar year available.
    Revenue excludes player transfer fees, VAT and other sales
    related taxes. In a few cases we have made adjustments
    to total revenue figures to enable, in our view, a more
    meaningful comparison of the football business on a club
    by club basis.

    For instance, where information was
    available to us, significant non-football activities or capital
    transactions have been excluded from revenue.

    In some cases these changes may be significant.
    Based on the information made available to us in
    respect of each club, to the extent possible, we have
    split revenue into three categories – being revenue
    derived from matchday, broadcast and commercial
    sources. Clubs are not wholly consistent with each other
    in the way they classify revenue. In some cases we have
    made reclassification adjustments to the disclosed
    figures to enable, in our view, a more meaningful
    comparison of the financial results.

    Matchday revenue is largely derived from gate receipts
    (including season tickets and memberships). Broadcast
    revenue includes revenue from both domestic and
    international competitions.

    Commercial revenue includes
    sponsorships and merchandising revenues. For a more
    detailed analysis of the comparability of revenue
    generation between clubs, it would be necessary to
    obtain information not otherwise publicly available.

    A brief summary of how Deliottle calculated all those revenues for comparison.

  63. Merlin96 says:

    This is Arsenal FC breakdown for FY2010/11:

    Matchday €103.2m (£93.1m)
    Broadcasting €96.7m (£87.4m)
    Commercial €51.2m (£46.3m)

    Arsenal narrowly remain in fifth place in this year’s
    Money League after recording revenues of £226.8m
    (€251.1m) for 2010/11, which in sterling terms, is a
    £2.4m increase on the £224.4m earned in 2009/10.

    Whilst football related revenues remained stable, Arsenal
    generated a further £30m (€33m) in property
    development revenue, despite a sharp though anticipated
    decrease, from the £157m reported in 2009/10.

    Our
    analysis focuses on football related revenue only. Although
    the Gunners reached the League Cup final, this was their
    sixth consecutive season without winning a major trophy
    or finishing in the top two of the Premier League.

    Arsenal continue to benefit from excellent facilities and
    full capacity attendances at the Emirates Stadium, with a
    league match average of 60,025 in 2010/11. However,
    there were two fewer Champions League fixtures in
    2010/11 and, as a result, a small reduction of £0.8m (1%)
    in matchday revenue from £93.9m to £93.1m (€103.2m).
    Nonetheless, this still represents the fourth highest
    amount from this source of all Money League clubs and
    Arsenal are the only club in the top 20 who accumulated
    more revenue from matchday than any other source.

    Broadcast revenue only increased slightly from £86.5m
    to £87.4m (€96.7m) in 2010/11 due in part to Arsenal’s
    UEFA distributions reducing from €33.8m to €30m
    (£27.1m), as a result of only reaching the last 16 of the
    5. Arsenal
    Champions League, compared to the quarter-finals the
    previous season. However, this was wholly offset
    however by an increase in Premier League distributions
    and for English clubs, a more beneficial exchange rate
    from the UEFA distributions.

  64. Merlin96 says:

    In contrast to their strength in matchday revenue,
    commercial revenue only accounted for 20% of Arsenal’s
    total football related revenue. In absolute terms this is
    over £57m behind the leading English club, Manchester
    United.

    The club is bound to its long term (£90m)
    agreement with Emirates, which runs until 2020/21 for
    stadium naming rights and 2013/14 for shirt sponsor.
    Given the financial values of the shirt sponsor deals
    agreed by some of the other top clubs in the Money
    League, Arsenal will have a significant opportunity to
    boost commercial revenue when this deal expires.

    The club is making headway with commercial revenue,
    growing from £44m in 2009/10 to £46.3m (€51.2m) in
    2010/11. Looking ahead to the 2011/12 season, the
    club have agreed new partnership deals with Indesit,
    Betsson, Thomas Cook and Carlsberg, as well as a three year
    renewal with Citroën, which should all contribute
    to an increase in commercial revenue in the next edition
    of Money League.

    Arsenal remain committed to a long term vision of a
    self-sustainable football club built on solid foundations.
    If the Gunners are to retain their position in the top five
    of the Money League, they will need to close the gap in
    commercial revenues with Europe’s other top clubs, whilst
    continuing to qualify for the Champions League.

    From Football Money League 2012 Sports Business Group

  65. Joaquim Moreira says:

    good afternoon
    Podolsky transfer is in every headline sports news today. It will be not very secret even Bundesliga and the League not be finish yet. A little bit strange because the newspapers can write about Messi’s five goals,Apoel,football matches today, etc. So, they have enought news…

  66. W.A.T.H says:

    Afternoon DG, keep that elephant locked away mate 😉

    Thats like having to go back to school and do more maths reading all those figures Merlin…. Spot on with the analysis though but until we get decent deals in place with stadium naming rights and shirt sponsorship deal we’re at least 15million a season down on the others and thats a lot year in year out

  67. Rokabox says:

    hi everyone, nice work merlin96

    I need a coffee though!

    thanks to wenger we will all have a degree in accountency or economics pretty soon!

  68. rico says:

    Song, Theo and RvP and Sagna (I think), all four contracts run out in 2013

    Funny how the media just concentrate on RvP….

  69. rico says:

    Just one out of the other two wath, and you know which one 😉

    Get M’vila/Nzonzi, JV and Podolski…

    And Jussi 🙂

    Simples

  70. Micko says:

    Its like University Challenge on here today.

    No rush with Song, not much chance of him being tapped up.

  71. rico says:

    Tis indeed Wath, don’t know why Gazidis finds it all so difficult 😉

    JV – 10m
    Pod – 11M
    Nzonzi – £10M
    Jussi Free

    Leaves enough for a bargin of two on DD – especially if we have that long overdue clearout….

  72. allezkev says:

    Rico, 4.13; it’s because he isn’t a football man.

    But maybe the Mata fiasco taught him an important lesson?

    We’ve been banging on about getting the clubs transfer business done more quickly.

    Have those lessons been learnt???

  73. allezkev says:

    On currant form i think i’d definately re~sign Rosicky, as long as his wage demands are sensible.

  74. allezkev says:

    Tbh, i should have learnt my lesson by now.
    Fancy me doubting your good self.

    Although DiMatteo might just be a good result for us?!

  75. rico says:

    AK, very good point, he’d be the first of a few out the door if i was Stan, Gazidis is nearly as embarassing and PHW….

  76. W.A.T.H says:

    Dialsquare…. your guess is as good as the rest of us BUT would this story be ALL over the media and tv if not slightly true…? seems to have legs and not just cos it’s ST renewal time like normal…!

  77. rico says:

    Wath, thats why i too think this story has legs, it’s not the usual spin from the club, they are saying nothing….

  78. Micko says:

    Another thing heavily in our favour, Goonster hasn’t come out and said he has a good feeling about this rumour.

  79. devilgunner says:

    Or lemon and ginger!!!!!

    Or blackberries!!!!!

    They are all good fine teas.

    And you do not need sugar with them. Just half a teaspoon of honey.

  80. devilgunner says:

    Regarding Podolski….until I see it officially on the AFC website and see him play in the ground for them I am a bit sceptic. Remember the yid scum from the slum who was with us for 60 days and then was exchanged for an English left back from Crystal Palace. He did not even play for us once. So I believe it when I see him on the pitch.

  81. Joaquim Moreira says:

    Why do we want to sell TW and Song?
    Sporting 1 M city 0 (!!!!)
    MU 1 Bilbau 1 🙂 at the moment…

  82. Scott From Oz says:

    I wouldn’t be devastated if Theo was sold…..we have more than enough capable players to cover.
    Song,well,as I said a week ago,when he plays well,we win….its that simple.
    He is more important than most realise,imo.

  83. allezkev says:

    What is really pissing me off, is the ignorant assumption among the usual talentless lazy cnuts in the media, that the signing of Podolski obviously means that Van Persie is to be sold…

  84. allezkev says:

    What the signing of Podolski shows, is that Arsenal are serious in bringing in some top talents to take the weight off of RVP’s shoulders and to make the squad more competetive.
    Once a top~four slot is assured i think at least 2 more big talents will come into the club.

  85. allezkev says:

    If Song leaves then either M’Vila will come in. Or else Wenger will go with Coquelin and Frimpong.
    Rosicky looks like staying.
    Not sure about Theo. Has he done enough to earn a bumper pay rise? I’d like him to stay all the same.

  86. allezkev says:

    Still got a hunch that Matias Suarez is on the radar.
    With the prospect of Vela, Chamakh, Bendtner and Park all leaving, that’s 4 forwards gone. Podolski alone might not be enough. Campbell is untested and Afobe a bit raw as of yet.

  87. Scott From Oz says:

    That’s,id keep Theo,but without the payrise.
    Predictive text is a pain in the Arsenal.

  88. Lee says:

    my typo….should of read morning AK & evening Scott….where abouts in Aus are you mate? My wife has relations in Melbourne so 2 Christmas’s ago we visited them but via Sydney! My favourite spot was Manly but we didn’t really travel about as much as we wanted because we had our three kids with us

  89. Scott From Oz says:

    I love about an hours drive north of Sydney.
    Gods country!!!!
    Come over and I will shout you a beer!!!

  90. Scott From Oz says:

    Rico,the harder they have to work,the better for us.
    Lee,ABSOLUTELY.
    I’ve been pretty positive since jumping on HH,but for good reason-I try believed we were a much,much better side than most did,and could also see light at the end of the tunnel.
    Most probably thought I was some dumb Aussie who jumped on the Arsenal bandwagon five minutes ago…..they may have been right,but that’s beside the point lol.
    I genuinely believed we had the makings of a very good squad.
    I also believed that injuries were our biggest problem,and not losing Cesc and Arsri.
    Better to have players who want to play,no matter how good.
    One thing this season has done…..toughened pur boys up.
    I’ve said a hundred times we are winning games now we’d have lost year,even with Cesc.
    I may be naive or a dreamer to many,but I say what I think,and I am ecstatic at the season so far.
    Trophies can be bought,but is rather our club build towards them.
    Yes,its been a while,maybe too long,but how sweet will it be next season when we win one???????
    Bring it on,stay solid,fellow Boomers.
    Good times,they are a comin’!!!!!

  91. Mohd Isa says:

    I believe the Arsenal brand is undervalued thanks to Wenger.The FM’s emphasis on pretty soccer at the expense of results contributed to this.Hopefully from now the gunners will get the cl berth and challenge and win the epl in 2013.
    Just imagine the spin offs if the gunners were to win the cl.It will be enormous. I dare say a successful Arsenal can even eclipse the red faced commercial deals.
    To reach this stage ,the gunners have to start winning games and trophies. When you are successful,every sponso would want to be associated with Arsenal.
    Tonight I hope the gunners take the first tentaive steps to achieving commercial success.That is beat Newcastle with ugly soccer if need be.Oh btw dont be surprised the ref sends a gunner off . You never know.

  92. alan b'stard M P says:

    you are right Mohd. If the battle of Britain was fought between football styles and not planes, they would not send the tippy tappy la ded dah passing mob. They would use the winning ulgy crew

    More effective

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