Arsenal reports half-year profits

The Premiere League club, spurred by the transfer of midfielder Patrick Vieira, reported a profit in the six-month period that ended on Nov. 30, 2005.

The London-based club enjoyed a 15.6 percent rise in turnover, from GBP 49.3 million to GBP 57 million. Additionally, pre-tax profit rose to GBP 14.7 million, up from GBP 2.7 million. The increased numbers are due in large part to the difference in player sale profits, which rose to GBP 13.2 million from GBP 812,000. Those figures include the sale of Vieira to Italian Serie A club Juventus for GBP 13.75 million. Without the profit from player sales, the club would have experienced a loss, given that operating expenses rose from GBP 46.7 million to GBP 56.4 million.

Non-executive club chairman Peter Hill-Wood attributed the rise in operating costs to four factors: rising costs related to the club’s revenue streams, the construction of the club’s new stadium (Emirates Stadium), the Highbury Square residential project, and an increase in player wages as a result of players qualifying for performance bonuses.

Also adding to the club’s profits has been an increase in merchandise sales and advance season ticket sales for next season at Emirates Stadium, with completion expected in the summer.

However, the club also reported its net debt had risen to GBP 209.6 million, up from GBP 153.3 million at the end of May. The main component of the club’s debt is a GBP 195.7 million loan from the Royal Bank of Scotland toward construction of Emirates Stadium. The club said it was working on minimizing interest rates on the loan, which would impact its financial numbers.