We’ll be the Real Madrid of England One Day…

Afternoon All, I hope you’re all enjoying the sunny day today (if you’re in London or anywhere sunny!)… unlike most Summers, this Summer seems to be quite busy already and the last two weeks post season has flown past. Real Madrid have kept us all very busy with their transfer activity which has seen Kaka and Ronaldo agree moves to the Bernabeu and it seems like Raul Albiol and David Villa will be next as both Valencia and Real Madrid have confirmed a £45m deal for both has been agreed.

Many people have wondered how on earth Real Madrid have been able to afford this and Perez answers the questions when he revealed:

“Real Madrid take about €400million a year, the fruit of three sources of income – a third from ticket sales, a third from television rights and a third from merchandising.”

And the advantage that Real Madrid have is that there is no real urgency to pay back any debts – being private investors and government related organisations, there is no focus at the financial to worry about the debt of the club – in fact, Real Madrid don’t actually see this as a debt, more like an investment. In fact, over the years Real Madrid have received over £500m in terms of investment from various sources, so although they believe they are not in debt, they actually live on very thin water!

In terms of club revenue, Arsenal are the sixth richest club in the world, with an annual turnover of over £200m. Chelsea and Man United had more turnover last season, but you’d expect those levels considering the events of the season and the trophies won / finals reached. Man United have a £600m debt and Cheslea a £500m debt. At the grove we have about £250m left on our stadium loan and with the Highbury flats windfall and other revenues, sources believe by 2020 we will be debt free. Imagine that, in 10 years from now, we will have no debt, and be able to spend all the revenue on players. With the pound surely strengthened by then and the management structure and academy top notch… surely we’ll be the richest club in the World? (If you take revenue and minus debt!)…

Position (06/07) Club Revenue
1 (1) Real Madrid £289.6M
2 (2) Manchester United £257.1M
3 (3) FC Barcelona £244.4M
4 (7) Bayern Munich £233.8M
5 (4) Chelsea £212.9M
6 (5) Arsenal £209.3M

Very exciting stuff, and the more I do the maths, the more I believe in Arsene’s vision of now and the future. Don’t forget we have a crop of kids coming through and a very decent squad which means we’ll never have to do what Real Madrid are doing now and spending upwards of £200m in one transfer window to reshape the squad…

Arsene said this in January regarding the way our club runs and it’s an accurate description of the difference between the other clubs in the top four and us…

“We live in a naturally healthy situation – we do not depend on one person, we do not depend on the banks because we make our profit. We respect our balanced budget, so I believe that we will not be in trouble. Fifteen clubs are for sale… and nobody is buying. I don’t know what will happen… I just know three months ago specialists said a barrel of oil would go to $200 but now it is under $40.”

And also, their is a difference between us and the rest of the teams – we don’t have a sugar daddy, a benefactor who will fund mis management. Eventually, these loans / investments will have to be paid back. Things are already starting to go a little crazy at Liverpool with news that they may have to sell a few players before they can invest in the squad – with Mascherano linked to Barce and Torres linked to Man United.

“Chelsea haven’t built a stadium and they lose £100m per year. How do you imagine you can deal with that at Arsenal Football Club without going bankrupt? We have to be responsible. It is not that we don’t want to spend. I believe that we have gone for a policy and we need to have a logic and a line of conduct inside the club that has to be respected. We have gone for a policy that is to develop our young players and we have to show some character and strength and not listen to everybody who comes out every day with a new name.”

Where you’ll see Man United spend £30m on Berbatov, you’ll see us spend £3.5m on a player like Van Persie – and answer me one thing – who would you rather have in your squad? The Bulgarian or the Dutchman? Of course, some of their buys will be good, especially with the amount they spend, but I do expect Arsene to buy a few players and I do expect them to be in the £8m – £12m bracket, Vermaelen being one of them. We’ll see what happens over the next couple of months – but one thing’s for sure – we won’t see any £30m players come in, but we will see a squad capable of challenging next season…

One day guys, we’ll be the richest club in the World… one day soon…

  • RockSolid

    The question is, will we really manage to recover our debt by 2020? And how much will we receive for the Highbury flats – because if it’s like £100m then we can definitely sort out the debt pretty quick!

    Arsene knows…

  • Arsefan101

    I remember the day we found out we were bringing Reyes to the club, it was awesome – it was the days when we already had Henry, Bergkamp, Pires et al, so it just felt like we were the best club in the world… and that feeling is coming back with Arshavin, Nasri and a few others… but I would love to be the club that signs the big players, the worlds best – they deserve to play for Arsenal!

  • RockSolid

    Yeah, I remember that day – it was awesome. Last Jan felt similar with the Arshavin deal… I hope we get Vermaelen and Yaya Toure… we’ll be really set for a CL winning season then!

  • sam

    As a businessperson, Arsenal’s financial responsibility and accountability is the reason I love the club. This is how any FC should be run and we’ll be rewarded for it in the long run, even if not fully demonstrated with trophies.
    But it’ll make good sense to sometimes buy 25Mil players, and then sell them for 50Mil after a few seasons!

  • Angela Perry

    that’s a terrific post, thanks for the share

  • devday

    I agree Sam, but it’s very hard to ever sign a player for £25m and his value rising… well, it does happen, but there is also a risk of the player’s value going down – see Juan Veron, Andrei Shevchenko, Hernan Crespo etc for a few examples…!

  • sam

    True, devdey.
    But none of those players were Arsene’s! How many loss-making players were bought by Arsene? Few, my memory tells me, very few. Those palyers were dealt by reckless managers.
    Arshavin was a bargain even though the price tag looked big, but his price will be higher at the end of next season while he’ll help us grab points in the meanwhile.
    Anyway, my point was, we shouldn’t shy away from a big signing once in a blue moon. Every business has a tolerance for risk, and it’s important to take some risks occasionally. I must add that I wouldn’t advocate overspending under current economic conditions.

  • Pissed off

    Sam its quiet understandable what your point of view is, but its not realistic with Arsenal especially with Arsene in the helm of power. Dev its quiet understandable to have a dream of being the richest club, but am afraid not in 15 – 20 years time. We try to act big but are not big enough; our principal of maintaining our character seems quiet elusive and unrealistic of the modern day football – in reality if we maintain that character we could struggle in all competition including the Carlings. Just faith keeps the ebbing flame going. AM BACK MATES!!!

  • devday

    Pissed off, you’re back – where have you been?! It won’t take that long until we become one of the richest in the world!

    Sam, I’m not against a big signing, but personally think it’s a much higher risk. With Reyes, a £17m signing shortly became a £9m flop – with Jeffers, £8m turned into £2m not long after…

    But nowadays, a £30m Berbatov is clearly a waste of money and has a greater impact on a club!

  • Gooner Get Ya

    It’s all well and good having money but we need to stay in the champions league or we run the risk of ending up like Man City who have a stack of cash but can’t attrack big players due to the league position. It is my belief that we need to invest a little to maintain our league standing/ club status.

  • devday

    The addition of Arshavin – the come back of the injured players – Eduardo and Rosicky – plus the return of Senderos, Traore and Simpson – plus the signing of Thomas Vermaelen – and don’t forget the natural increase in ability of the younger players puts us quite a lot ahead of teams like Man City and Liverpool. If we even go one further – which I think we will – and sign another player or two, we’ll be challenging for all competitions – none of the signings / additions will be £30m players though!

  • Berth

    Senderos,Traore and simpson will bring quantity rather than quality.

  • Berth

    Just heard Cesc scored for Spain in a 5-0 win.

  • zohaib

    Senderos has expressed a desire to stay at Milan, numerous times. And I’m inclined to agree. I don’t think he’s good enough for a top 4 club in the premier league and I’m sure there are better defenders we could go for.

    Traore and Simpson will definitely bring something more to our squad. But I wonder if players like Gibbs and Traore will ever be played at LM. Rosicky, Arshavin, Nasri and unfortunately Diaby are probably favorites for LM, before those two. Maybe in a few years if they improve, they’ll become challengers for a starting position…

    If Reyes cost 17 million pounds, how is it that so many people have said that the 15 million pound purchase of Arshavin was the highest transfer fee Arsenal have ever paid for a footballer ?!

  • zohaib

    So Sakho’s not coming to Arsenal.

    Maybe M. Diarra is a more realistic target for us for the DM position. I wonder what kind of salary he’ll demand and what transfer fee Real Madrid are asking.

    We haven’t heard too many rumors of him. I wonder why ! With exception to the Arshavin transfer, whenever Wenger’s bought players, we’ve not really known who we were getting until after the deal was in place. So either it’s again somebody who we don’t know or somebody who we haven’t heard rumors of. And M. Diarra is one of those we haven’t heard rumors of.

    And apparently David Villa is in talks with Barcelona…

  • Yemi

    DM, DM, DM, CB, CB, CB. Thats all we need for now. On another note, who said Jay and traore will add only quantity and not quality ? I guess same must have been said about Gibss last season before he stepped up and performed absolutely well with that slip the only dark patch for him. Jay will surely add quality upfront, if you follow the guy, you will see that he has a way of running at defense lines welland he also has a good stature as well as skill. Traore’s loan spell has also helped him improve well. I guess he could be put on LM and arshavin given a more central/free role.

    Finally, who are we buying ? any concrete news ? its so quiet in the camp of arsenal. I want anyone joing to do so before the pre-season so he can blend with the team in good time

  • Berth

    The contribution of Gibbs last season guaranteed that our future is bright but does not show any for immediate success. Its quiet funny talking about Simpson – the lad is alright but not likeable.

  • Debs

    Good to hear from Clichy by the way:

    Clichy told skysports.com: “I heard there is an interest from Real Madrid, but I have a contract with Arsenal which I intend to respect unless the club say otherwise

    “It is great to be linked with Real, but I want to win things with Arsenal.”

  • Berth

    And again quality cannot be compensated with quality. We need to start buying; Mr. bergkamp has suggested we go for YaYa at any cost – that is what ambition is all sbout.To be big you need to act big; Arshavin, Cesc, “yaya”, Kolo.

  • Arsefan101

    I understand your point Berth. But Armand will definitely bring something – pace and trickery to the left wing and cover for left back – Gibbs we know can do the business. I’d rather have the quantity than not! If we have all our players fit, then yes, Traore may not play, but we’ve got to think that some of our players will be injured – as is always the case!!