Arsenal’s £42m off-pitch plot hangs in balance after ‘best deal in history’ collapses

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Arsenal are among the clubs that could be left counting the cost of a major business blunder from FIFA.

With Arsenal lagging behind their peers in the so-called ‘Big Six’ in terms of revenue, the club are now exploring new ways to drive financial growth.

The Gunners have one of the most recognisable brands in football but their commercial income of £173m last season looks relatively modest compared to the likes of Man City, who earned twice as much.

In an era when clubs’ ability to spend is fixed to revenue, this is a problem not just for Stan Kroenke and those looking to generate a return from the club but also Mikel Arteta, whose budget is affected.

Arsenal have spent big in the last two seasons in particular and are not one of the clubs who are currently at risk of breaching Premier League or UEFA PSR.

However, they will need to find a way to eat up the financial ground on the rest of the Big Six if they are to continue the huge progress they have made under Arteta.

That may be one of the reasons that the club is supporting a controversial proposal from FIFA, which has been hit by a series of setbacks recently.

FIFA need to raise cash for Arsenal-backed project

FIFA is currently gearing up for the latest edition of the Club World Cup in 2025, which will be held under a new expanded format.

For the first time, 32 clubs will contest the tournament in a World Cup-style affair in the United States.

Arsenal will not play at the event, with Man City and Chelsea being the English representatives.

However, the Gunners are backing the project in the hope they can feature in future editions of the quadrennial event that FIFA think can be worth up to £42m in prize money for the winning team.

But the plan has hit a number of roadblocks in recent months, with FIFA unable to secure a broadcast deal for the tournament despite £800m talks with Apple.

Now, world football’s governing body is seeking £1.6bn in funds to improve its exclusive streaming service, FIFA+, to air the Club World Cup.

In a report for SportsPro, sports business expert Steve McCaskill linked the body’s need to raise funds with their decision not to renew its licensing agreement with EA Sports.

That deal, which McCaskill describes as “the best licensing deal in history”, was worth £115m per year to FIFA and was their biggest commercial partnership besides the World Cup.

EA later rebranded its football title to EA Sports FC.

READ MORE ARSENAL FINANCE NEWS: Arsenal owner Stan Kroenke to cash in from world-record £5.3bn business deal

TBR Analysis: Why do Arsenal want to play in expanded Club World Cup?

Aside from the raw prize money, Arsenal would welcome the opportunity to further their brand in the US by playing competitive matches there.

A 2022 report from industry experts CLV Group found that Arsenal could unlock almost £80m in extra commercial revenue by focusing on digital experiences and overseas markets, for example.

Their focus on the US is evidence by the fact they have regularly toured the country in pre-season.

They will do so again this summer, with a friendly against Man United at Stan Kroenke’s SoFi Stadium in Los Angeles one of the stops.