Arsenal confirm off-pitch deal that could unlock £134m cash pile

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Arsenal have struck a new agreement that will amplify their ability to compete in the transfer market for years to come.

It has been a relatively modest window for Arsenal so far, compared to last summer at least.

Riccardo Calafiori has come to the Emirates from Bologna while David Raya’s loan move from Brentford has – as expected – been made permanent.

Even if and when Mikel Merino’s move to Arsenal from Real Sociedad is complete, it will have still be a quiet window by the Premier League’s own stratospheric standards.

Profit and Sustainability Rules (PSR) have had a concrete impact on spending across the division, although Arsenal have plenty of capacity under these spending rules.

In response to claims that the club had been briefing clubs to the contrary, finance expert Stefan Borson has suggested Arsenal’s lack of spending may be a strategic move.

But the Stan Kroenke model in North London has always been for the club to stand on its own two feet, with any expensive additions fully costed against projected revenues.

And with that in mind, the club has announced a new deal that could set them up for years to come.

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Could new commercial deal be precursor to Emirates expansion?

Arsenal are one of just three Premier League clubs who can expect to generated £100m-plus in matchday income every season.

However, Man United’s enhanced capacity and the hyper-modern nature of the Tottenham Hotspur Stadium means the Emirates is falling behind in its monetisation potential.

It is for that reason that Arsenal co-chair Josh Kroenke has said they are considering expanding the stadium, albeit that these talks are at a very early stage.

Liverpool University football finance lecturer Kieran Maguire has previously told TBR Football that Arsenal could potentially spend £500m on an 80,000-seater stadium revamp.

Analysis shows that this would be worth at least £136m per season for the Gunners, and potentially a huge margin more.

Significantly, the Gunners have this week announced a renewal of their long-running commercial partnership with Ticketmaster, through whose service Arsenal sell around 9,000 tickets every game.

Given that the partnership is long-term, it is likely to run into Arsenal’s move into a revamped Emirates, should that indeed transpire.

When will Arsenal expand the Emirates?

Massive capital expenditure projects take a long time to put together.

If Arsenal were to expand the stadium, it would be an immensely complex project.

For one thing, it would require all sorts of planning permissions and likely an investment by the club into the infrastructure around the stadium.

For that reason, it is likely to be several years before Arsenal have both the capital and the capacity to expand the arena.