Arsenal set for £35m off-pitch bonanza, transfer benefits to follow

Add as preferred source on Google

Arsenal are set to bank a £35m financial boost that will reinforce Mikel Arteta’s transfer budget in coming seasons.

The Gunners have spent big over the last two seasons in particular, with a net outlay of almost £300m.

This summer, they have already made David Raya’s loan move from Brentford permanent in a deal worth £27m.

Now, Bologna defender Riccardo Califiori is set to become Arsenal’s second addition of the transfer window.

This free-spending approach is a departure from the norm for Arsenal, whose owner Stan Kroenke has historically wanted to pursue a self-sufficient model.

The 76-year-old billionaire, who operates the second-most valuable multi-sports empire in the world, ultimately wants the Gunners to stand on their own two feet financially.

A key component of that strategy is commercial income, which was worth £173m for Arsenal in the last financial year.

And the latest details from this department shed some light on how much Kroenke might funnel into the transfer budget this summer and beyond.

Arsenal raking in £35m from commercial deal

Arsenal‘s three biggest sponsorship deals are with Visit Rwanda, Arsenal and Emirates.

That deal with UAE airline Emirates is one of the longest running partnerships in football history and will have run for 22 years by the time it is next up for renewal.

Emirates reportedly pay the North London club £60m per season for their front-of-shirt and stadium naming rights.

There is no official breakdown in terms of what each component of the deal is worth.

However, the latest report from finance industry experts Kroll has found that Arsenal’s naming rights are worth an estimated £8.82m per year.

With four years remaining on the contract, that means Emirates are set to pay Arsenal just over £35m if the Kroll analysis is correct.

Given that Kroenke does not take money out of Arsenal, viewing them instead as a capital appreciation project, that cash will go towards costs – and that includes the transfer and wage budget.

• READ MORE ARSENAL FINANCE NEWS: Arsenal owner Stan Kroenke makes £260m finance pledge in the US

TBR Analysis: Do Arsenal have PSR issues?

Profit and Sustainability Rules, or PSR (formerly Financial Fair Play, or FFP) have been a hot topic in recent seasons.

The Premier League is keen to prove to the government that it can self-regulate so as to water down the threat of an independent regulator for English football, which Arsenal oppose.

That has led to Nottingham Forest and Everton being slapped with points deductions, while Man City and Chelsea have been charged with even more serious alleged offences.

Arsenal have posted losses of over £200m in the last three years, which is well over the Premier League’s allowable loss limit of £105m – on paper, at least.

However, they have significant allowable deductions and so actually have plenty of PSR headroom.

They have the flexibility to spend £100m-plus again this summer, which could be supplemented by PSR-efficient sales of academy players like Emile Smith Rowe, allowing for further signings.