Arsenal to be seriously loaded?

The total cost of the Emirates stadium project is £390,000,000.

This supposedly includes the cost of relocating all the businesses that were on the site and building a new recycling plant as well as the cost of converting Highbury into homes and building homes on the other sites as well.

There are more than 2,000 homes being built across the three sites.

It is reasonable to assume that the average selling price of these homes will be £250,000.

This means that over the next 3-5 years as they finish the redevelopments and sell the properties they’ll receive £500,000,000.

Right?

The stadium will have the highest match-day income of any stadium in the world, which is enough to easily service the debt AND we’re going to have half a billion pour into the club?

Am I missing something?

57 Responses to “Arsenal to be seriously loaded?”

  1. # Anonymous Matty

    Yea Reality....  

  2. # Blogger alexexexex

    No, really. What have i missed? any sensible suggestions?  

  3. # Anonymous robinvp

    you are not missing anything but it will not be as straight forward as that. the project will be outsourced so profits will be shared in some cases.
    we will be floating a bond with very stringent auditing.
    after 5 years if everything goes to plan WE WILL BE THE RICHEST CLUB in the world. as we have assets that most other clubs dont namely real estate in prime london territory.

    Wenger has worked miracles whilst the directors have got on with their jobs. we fans have also been understanding and continue to do so as we all realise that once we get through this phase of our history (hopefully with a lot of trophies)
    we will have established ourselves as the number one club (on the business side) lets hope the team matches upto the same level of ambition.
    Wenger has said that there is not a problem with coles transfer and that we will be buying a defender that can play at CH & LB.
    i hope that player is gallas. the chavs have bought that crap dutch defender so gallas must be on his way out. they must have a lot of discontented players to deal with without the likes of gallas piling on the pressure.

    in WENGER we TRUST.
    ARSENE KNOWS!!!!  

  4. # Anonymous jmg

    yep. you're missing the point.

    gunners fan here. and architect too
    its not like these houses are going to build themselves for us for free. building costs a lot of money. dont forget the materials, labour and planning etc. a house normally retails for 20% above the cost of building it. so take that half billion and multiply it by a fifth to get a more realistic figure of the money that will "pour into the club".

    secondly i sincerely doubt that the area that you're refering to has the capability to accomodate 2000 apartments, i may be wrong, but i'd like to see the proof.

    nevertheless, i'm sure we have what it takes to win big, both financially and on the pitch  

  5. # Anonymous blingblong2000

    the properties cost to build, and then you got the cost of selling and tax on the profits.... etc etc.
    whats this bond thing?  

  6. # Blogger alexexexex

    This comment has been removed by a blog administrator.  

  7. # Blogger alexexexex

    This comment has been removed by a blog administrator.  

  8. # Blogger alexexexex

    JMG - http://www.arsenal.com/article.asp?thisNav=The+Club&article=402638  

  9. # Anonymous Anonymous

    hi jmg here
    theres a problem with the link because it may be too long to post
    either way, i'll take your word for it  

  10. # Anonymous soma

    Great Arsenal fans

    i am a big fan of the gunners but i cant attend there games because i live in saudi arabia (it sucks) so please do your parts and fill that baby every match in that way we can help our team morraly and financially even if we dont win for some time please FILL IT(stadume).

    and all my regards to all of you loyal loyal fans happy to be part of this great great team even if i cant help  

  11. # Anonymous Anonymous

    dosent the cost of the emirates include redoveloping highbury? if so then wouldnt the sale of the apartments be mainly profit for us?  

  12. # Anonymous Chris

    revenue doesn't equal profit. revenue minus expenses equals profit or loss. Building 2000 houses isn't cheap  

  13. # Anonymous adebayorslovechild

    I believe that 390,000,000 includes the building cost for 2000 homes. However, it doesn't include transaction costs, agency fees, etc. and it may also take a while for all these to sell, so the club would need to pay interest in the meantime. So the present value of the 110 million "profit" may be substantially less...  

  14. # Anonymous WW

    No... seems that most people have missed the main point. not just the building costs and transaction fees...

    The simple fact is, NOT all the 2500 new homes built will belong to us. As far as I know, only the 711 apartments that will be built at the Highbury site will be owned by AFC. The rest are all redevelopment projects in which we will have to shoulder the building costs (as a condition for the approval to build the new stadium) but not to make a penny through the sale of the finished products (a large portion would be affordable housing anyway). Fortunately the redevelopment costs have been accounted for in the 390M budget.  

  15. # Anonymous DGS

    I expect thet we will break even. That is a massive success: owning the best and most lucrative stadium in the world and no debt to service!
    As for Highbury's 711 flats I think the developer gets half the sales revs as part of the deal.
    Anyway, the main thing is that we will be a loaded club with a top team and won't owe any investor millions like Mancs do and won't exist according to the whims of some Russian Crook!  

  16. # Anonymous East Upper

    £390m is cost of Ashperry Groves in total. From what I can understand doesn't include cost of redeveloping HOF, there will be substantial profits from the 700+ flats there but when I asked the ques. at an AGM 2 years ago was told "that money" will go to the club (i.e. team)" not for repaying the loan which is now being securitised, although you can never get a "straight" answer to any ques. asked. There s/be substantial funds available to AW as the flats are sold 2010 that's why he have invested so much in youth over the last 3 years. Come on you Redssssssss.  

  17. # Anonymous Mick

    The bond scheme is already completed & was done so on the 25th July, see link below. It meant an upfront early repayment charge of 27 million payable to the banks involved but it also means our yearly interest payments have fallen from 17 million to 7 million.

    http://www.plusmarketsgroup.com/story.shtml?ISIN=GB0030895238&NewsID=23091.

    If you trust what Edelman says then apparently we only need 20000 fans each home match to cover all the debt, (although he didnt say if they had to be made up of mostly the expensive club level seats). Although the whole stadium project cost 390 million people seem to forget that arsenal themselves have paid 130 million towards it through different sponsorships, so the actual debt is 260 million. Arsenal have just received 55 million from nike & a similar amount from emirates so that money if not paying back the loan is certainly being used for something (maybe the highbury development). Once all the land has either been sold or built on then arsenal should be in a very good financial position. The next manager after wenger will have immense funds to spend, unfortunately for wenger I dont think he will remain at arsenal long enough to have those funds. He is 56 now & has always maintained he wouldnt be in club management when he was over 60.  

  18. # Anonymous Tony

    I love that.  

  19. # Anonymous Valour

    Guys, no wonder DD reiterated that there's no replacement for AW, he is really THE PROF! Mick, I can say unequivocally that Wenger will still be here by then, maybe not as the coach but in the board or management. D. Dein has also said that the Prof is signed for life, when he is tired of managing track suits there will be another level of management for him in the office. I believe these are not mere enticing words. With this kind of statistics, the likes of Gelbs should quickly render and unreserved appology for constantly criticising Wenger or junp ship to the chavs for instant qratification, cause Wenger is a Genius. We all need to be patient and believe more in the Prof.
    Does anybody still doubt that "WENGA KNOWS"?  

  20. # Anonymous DaveyD

    There are some 2000 properties being developed but as rightly said I think AFC have sold the land to the devlopers etc, this is included in all the stadium costs. We have a loan totalling £260m, although some £50-60m is shorter term debt. This will probably be settled by the sale of the Highbury Flats which are still owned by Arsenal.

    The big thing to consider here is simply, if Arsenal do sell out the Premier League and CL games revenue will be immense, however as Edelmen has said, we only need (n)000 to break even and service the debt.

    Here's some interesting finances for you to consider.

    Highbury Total Matchday Revenue was around £33-35m.
    Sales of Boxes and Club & Diamond Level alone in Emirates total the same amount.
    Now let some 50,000 other fans in to the stadium paying anything between £40 - £84 a seat, there will be some concessions JG's OAP's etc but not loads, and you can see thats nearly 2m a game more.

    This total matchday income of £33-35m included drinks and programme sales etc as well, so I imagine they can rake in alot more with I believe upto 21% of sales of all food and drink going direct to AFC, having outsourced the food and drink vending to Delaware North for the next 20 years.  

  21. # Anonymous gazzap

    I saw edelman on sky sports news last night and he said Arsenal would be clearly the richest SELF FINANCING club in the world. clearly no-one can compete with billionaire crooks but we have to be happy with that. I think there are going to be a few years of belt tightening until the property developments are sorted but then we are away.
    after that we'll be able to outbid almost any club in the world for a top player, maybe chelsea will be the only exception.  

  22. # Anonymous Peter W

    The more you learn about the finances the more you understand that the youth policy of the last few seasons was borne, partly at least, out of neccessity and part and parcel of the long term financial planning around the new stadium.

    As I understand it the loans over the next 3 years involve an agreement to limit nett transfer spending to a nominal £12mn a year. This doesn't sound a lot but I understand that nett transfer spending over the last 5 years has been £8mn so £12mn represents a 50% increase. The figure can be increased depending on other revenues into the club but there is a nominal cap in the budget for the next 3 years at least. At this level this should allow one or two new key players a season assuming we sell unwanted players at the right time at the right price.

    The long term finances look to be in good shape provided that we continue to be successful and qualify for the CL ever year but half a billion coming into the club is fanciful economics.  

  23. # Anonymous Harry Barracuda

    I think part of the deal is we build low cost accommodation for the locals. So I doubt it's going to be 2,000 homes. Plus, as someone pointed out, you have to build the bl**dy things before you can sell them!

    And Gooner in Saudi Arabia, get your arse over to Bahrain for a game or two. We'll ply you with beer and make you feel better!

    Drop me a line at harrybarracuda@hotmail.com if you ever get out of the Magic Kingdom.  

  24. # Anonymous Jamie

    God, I can't wait for the finances to be settled. What a sense of acheivment there'll be at the Grove, that they've done it all without a pug-ugly yank dropping them half a billion in debt, or an alledgedly murderous crook. I really hope Wenger gets a couple of years of riches to play with after all the excellent work he's done with not much dosh.  

  25. # Anonymous Jeffers mamimus

    This may be a controversial thought, but i think the arrival of Abramovich has done us a huge favour financially. As we no longer expect (but more hope) to be genuine title contenders, instead of having to ensure that we win the prem or are at least in there in the last 2 weeks, all AFC need to do now to satisfy the fans is get top 4. This being relatively straighforward (3 spots, 4 contenders), we can embark on a 5 year plan of limited transfer outlay to pay for the stadium. Once it is all paid for and we have the biggest revenue generating arena in football we are then back in the business. By this time the level of interest Abramovic has in football, or at least Chelsea, may have diminished after years of easy trophies. Then Arsenal become the financial powerhouses of english football in the way Man U were before Chelsea.

    In short, Mr Abramovic has bought us the 5 years we need to redevelop the club into the strongest financially sound club in the UK.

    Thanks Roman! and thanks even more to Arsene, his youth policy is allowing all of this to happen.  

  26. # Anonymous magic_hat_man

    Some very good points made, and not a comment from the chav Gelbs among them. Jeffers, re: your comment and Arsenal becoming "the financial powerhouses of english football" would we then be as hated as chel$ea and would we want to?  

  27. # Anonymous robinvp

    Wenger has had to not only deal with financial constraints but the new uefa ruling re number of players that have to come through the youth set ups at clubs.
    it begins with 2 this year then 4 next and so on untill it reaches 8 players.
    this is the main reason we are gathering the very best young talent in our academy.

    re teh construction of the flats.
    as i have been led to believem Arsenal will not be paying for the total redevelopment as the developer will front costs to share in profit.
    we make less money but we are sharing the risk for a percentage.
    The Arsenal board are top draw business men.
    we have a ex bank of england commitee man lined up as the enw chairman when hill wood calls it a day.
    we will be one of the top sports franchises in the next decade.
    Lest hopw WENGER is with us for a nother decade to oversee it all.

    CUM ON U REDSSSSSSSSSSSSSSSS!!!  

  28. # Anonymous The Highbury hero

    When we are financially strong we won't be hated like Chelski. We'd be respected for the grass root development that has got us to that position. Not a money jackpot from someone who stuck a pin in a map. And of course we are one of the most attractive teams to watch in the world.

    Thank you wenger.  

  29. # Anonymous Tyrannosaurs

    You also need to figure in that to get planning permission for the project a significant number of the properties being developed will have had to be on an "affordable" basis for lower paid key workers (standard these days). As a result these will be worth considerably less than their market value to the club and may indeed be given to the council as part of the overall project contribution to the area.

    Bottom line is that the property redevelopment will not cover the cost of the new stadium and all associated projects.  

  30. # Anonymous Fraggle

    The cost of every fan buying a pie and a pint (£7.20) should pay for the whole thing in a couple of years! But seriously The board and wenger have worked wonders with this whole project and everything we now have and will have in the future is down to brave quality decicion making, bloody hard work and not a result of a lottery win. Thats why we will not be hated the same way chelski are. Is there a better run club in the world?  

  31. # Anonymous Little Dutch

    Is the site prepared to post a retraction on its last article, given that Walcott played yesterday? You were happy to criticise AW for omitting him. On my part, I thought the dude wasn't fit. But AW sees him everyday and saw fit to play him, I'm glad he did cos the boy made a real difference.  

  32. # Anonymous jim simons

    Yesterday, I was elated to finally see Walcott make his first team appearance. However, my enthusiasm was tempered by the final score and the realization that we probably won't win another title for a long time. No thanks to our stubbornly arrogant manager who, having identified his team weaknesses two years ago after finishing second to Chelsea has doggedly refused or unable to address those shortcomings. Arsenal fans may want to believe otherwise but be prepared for many days like yesterday; 1-1 draws to inferior opposition and losses to the likes of Bolton, Everton, Man U and of course Chelsea. I won't even mention S***s.  

  33. # Anonymous Little Dutch

    Hasn't addresses those shortcomings? Errr, he's built a whole new side since then. Twat.  

  34. # Anonymous jim simons

    Hey 'little dutch'. You really told me,huh. I see the size of your vocabulary is about the size of your IQ. Here is a news flash genius: Arsenal is too young and too soft in the center of the park to win the title this year. How did building a new side address those weaknesses brainiac? Since you are so bright maybe you can enlighten us all.  

  35. # Anonymous Gelbs

    lol  

  36. # Anonymous Joe_@**

    little dutch & jim, both of you are right to a certain extent. it's true that our midfield is too soft & it's also true that wenger did attempt to rectify the problem. he introduced a plan b, 4-5-1 which almost landed us the elusive cl title last season. the issue here is, whenever we play with an extra man in the midfield, our main man up front would be left isolated. i guess only henry has the sufficient combination of speed, tecnique & physical presence to take up the lone striker role in our team. nevertheless his capability would still be compromised by maybe 30%. since our game is built around fabregas which has all the desired attributes of an exceptional player except being deemed too soft (ditching him is out of question), we would have to either be less adventurous with 4-5-1 or be bullied around by some physical teams with 4-2-2. we did play with 4-5-1 in some league games last season but to minimal success because unlike knock out competition, we can't afford to win a game & hold out for a 0-0 draw in the next. so i guess wenger then bought in the more physical diaby to complement fabregas in 4-4-2. it's remained to be seen if that would be our solution but playing diaby would mean leaving out our gilberto 'invisible wall' silva who covers our back four very well, so it would be difficult decision except diaby is really good.  

  37. # Anonymous Gloryhunter

    I'm curious as to what happens once Merida gets his wings. A midfield troika of Merida, Fabregas, Walcott would be simply awesome, but likely to be kicked off the pitch. We need a mighty bruiser to help them out. Will Song/Diaby be ready to fill Vieira's shoes in five years time?  

  38. # Anonymous Peter W

    We didn't not win the Villa game because our midfield was too soft. Fabregas is noticeably physically stronger and was able to keep possession under pressure perfectly well. Encouragingly for me I don't see that Cesc will suffer the physical handicap as he did in the greater part of last season and he will continue to get stronger. The left side of the team was our weakness. Without Cole (or someone very like him) going past Ljungberg we weren't able to take full advantage of the extra space available and the tempo of our game was too slow. Villa found it relatively easy to fill the space and had plenty of time to do it.

    In games like these we need players (or at least one player) who can dictate the tempo of the game. That just wasn't there on Saturday whether due to 'lack of sharpness' or not. It certainly wasn't because we were too soft physically. When we went a goal down a sense of urgency developed and it then just became a matter of whether we could score quickly enough to save a point or maybe win it. If we had played with the same urgency and tempo from the start we would have won comfortably.  

  39. # Anonymous skeeny

    i thought saturdays result was not to bad considering the injuries and lack of match fitness and also the fact that villa are now managed by someone who has actually got a clue about football and who is well organised, for people who thought we was gonna win by a cricket score need to take a reality check!  

  40. # Anonymous Little Dutch

    Well it's really perfectly simple Jim. The side of 2004/05 just was not sufficiently hungry, it lacked the motivation to really challenge Chelski. The players appeared satisfied with second place, as Man Utd are now. Hence, we shipped out the likes of Vieira, Pires, Campbell etc who felt they had achieved all they were about to. So AW put his faith in youth and now we have players who are hungry and motivated. It will take time and they will have to learn from their mistakes, but we have a long term strategy to usurp Chelski. The lack of muscle will be augmented by i) Diaby's return and ii) the 4-5-1 formation we will adopt in tough away matches. If, however, it's semantics and I.Q's you wish to discuss, you might be interested to know that I have a PHD in Literature and I teach English. (Those who read these boards regularly will know this, because it's all I ever seem to bang on about). If you go to games mate, you might like to pick yourself up a copy of the gooner, I've written a featured article about TH, entitled coffin dodger, then perhaps you can see how linguistically verbose I can be.  

  41. # Anonymous Peter W

    Little Dutch - I am not sure it was a conscious decision to ship out the experienced players due to lack of motivation alone. Given the choice you would expect us to wait until the youngsters had matured a little more. I suspect these decisions had more to do with financial constraints and the high wage bills these players were on (someone has to pay for TH’s new contract !). The youngsters are cheaper and hungrier but it has cost us over the last couple of seasons and may do so this season also. In the short term it maybe that there is no other way but I agree the long term strategy is sound and it is great to see those out on loan gaining valuable experience while they build up physically. We should have a core of very good experienced players over the next few seasons.  

  42. # Anonymous Joe_@**

    peter, i agree with you that in the last game, our left back is the weekest link of the team. hoyte was played out of position so the jury is still out to judge if he is merely not suitable to play as a left back or he is just not up to the standard. i was surprised we did not play flamini instead since he did really well in that position last year. does it have something to do with the pressure of fielding at least an english player in the first 11? if that's the case we may see ryan garry starting ahead of clichy when both are fit  

  43. # Anonymous Little Dutch

    I take your point, I think financial constraints on the team are there for all to see. Personally, I wouldn't have minded at all if Sol and Bobby had stayed on as squad players. But I think the decision came down to the fact that we cannot afford to pay huge wages to bench fodder. I just got the feeling that the 'invincibles' had gone as far as they could, Vieira in particular cut an increasingly forlorn figure in 2004/05 and I think AW re evaluated the situation and thought that that squad was only ever going to finish second, so he's replaced it. We'll probably have a couple of seasons off the pace, I think we'll get 3rd this year. But I'm happy to get some short term pain for long term gain. I do think that Thuram would have been a very good addition, but I hope to see Gallas in an Arsenal shirt soon, to bolster the experience. I agree that Hoyte looks a bit out of his depth, I'll hold fire for now, but I'd prefer to see Falmini there on weds.  

  44. # Anonymous Peter W

    I agree with you about Vieira at least. I think it was a real blow to AW's plans when he chose not to go to Real for £24mn. AW has said (Gunners mag) that if he had gone he would probably have bought Carrick. I wonder what impact that would have had on our fortunes if it had gone ahead?

    I see left back as our most uregnt problem. I am sure Hoyte is a good player and maybe right back/centre back is fine. Flamini did well last season but mainly when we were playing 4-5-1. In the 4-4-2 we tried to play at the weekend I think he would have had similar problems to Hoyte. Our attack does depend on the tempo of a genuine left footer in that role - more so than left wing where we have more often than not played with a right footer - Pires and Overmars before him. Clichy I guess is the intended answer but we need better cover.  

  45. # Anonymous Peter W

    I have just heard that Pires has done his cruciate ligaments and could be out for the rest of the season. At his age it may mean the end of his career. I hope not - Le Bob was a seriously great player and if any one were to claim that he was the best Arsenal player ever I would probably struggle to argue against it.  

  46. # Anonymous DeiseGooner

    Yeah sorry news for bobbie alright but at least hes in sunny spain to recover eh.
    Chelski signed a dutch central defender, does that mean Gallas is off to The Grove when we offload Cole to em?  

  47. # Anonymous Little Dutch

    I think it does, I certainly hope so. Shame about Bobby, I hope he comes back, but at 32 it seems to be a death knell.  

  48. # Anonymous Rich Rangoon

    Intrest on the loan  

  49. # Anonymous Zola

    Not as loaded as us you sad muppets! Blue is the colour!  

  50. # Anonymous darren

    You have missed something, the fact that the houses will cost money to build!  

  51. # Anonymous darren

    Also worth noting that the Highbury redevelopment is not included in the Ashburton fees, but through a £150m (there abouts)loan.  

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    And in January, the world�s largest pork processor, Smithfield Foods, said it would phase out confinement of pigs in metal crates over the next decade.

    Some city and state governments have banned restaurants from serving foie gras and have prohibited farmers from confining veal calves and pigs in crates.

    Temple Grandin, an animal science professor at Colorado State University, said Smithfield�s decision to abandon crates for pregnant sows had roiled the pork industry. That decision was brought about in part by questions from big customers like McDonald�s, the world�s largest hamburger chain, about its confinement practices.

    �When the big boys move, it makes the entire industry move,� said Ms. Grandin, who serves on the animal welfare task forces for several food companies, including McDonald�s and Burger King.

    Burger King�s decision is somewhat at odds with the rebellious, politically incorrect image it has cultivated in recent years.

    Its commercials deride �chick food� and encourage a more-is-more approach to eating with its turbo-strength coffee, its enormous omelet sandwich, and a triple Whopper with cheese.

    Burger King executives said the move was driven by their desire to stay ahead of consumer trends and to encourage farmers to move into more humane egg and meat production.

    �We want to be doing things long before they become a concern for consumers,� Mr. Grover said. �Like a hockey player, we want to be there before the puck gets there.�

    He said the company would not use the animal welfare initiatives in its marketing. �I don�t think it�s something that goes to our core business,� Mr. Grover said.

    Beef cows were not included in the new animal welfare guidelines because, unlike most laying hens and pigs, they continue to be raised outdoors. Burger King already has animal welfare standards for cow slaughter, he said.

    The changes were made after discussions with the Humane Society and People for the Ethical Treatment of Animals, known as PETA.

    PETA, in particular, has started a series of high-profile campaigns to pressure fast-food companies to change their animal welfare practices, including a �Murder King� campaign that ended in 2001 when Burger King agreed to improve its animal welfare standards to include, among other things, periodic animal welfare audits.
    Since that time, PETA officials said they had met periodically with Burger King officials to encourage them to adopt tougher standards. About a year ago, the Humane Society began its own efforts to encourage Burger King to improve its farm animal standards.
    Mr. Grover said his company listened to suggestions from both groups, but ultimately relied on the advice of its animal welfare advisory board, which was created about six years ago and includes academics, an animal welfare advocate, an executive of Tyson Foods and Burger King officials.

    �Where we think we can support what our animal advisers think is right, we do it,� Mr. Grover said.

    The changes apply to Burger King suppliers in America and Canada, where the chain purchases more than 40 million pounds of eggs a year and 35 million pounds of pork, he said.

    A reason that such a small percentage of purchases will meet the new guidelines is a lack of supply, Mr. Grover said.

    Burger King plans to more than double its cage-free purchases by the end of this year, to 5 percent of the total, and will also double its purchases of pork from producers who do not use crates, to 20 percent.

    Most laying hens in the United States are raised in �battery cages,� which are usually stacked on top of each other three to four cages high. Sows, during their pregnancies, are often kept in gestation crates, which are 24 inches across and 7 feet long.

    Matt Prescott, PETA�s manager for factory farm campaigns, argued that both confinement systems were filthy and cruel because the animals could barely move and were prone to injury and psychological stress.

    Under Burger King�s initiative, laying hens would be raised in buildings where they would be able to wander around. Similarly, sows would be raised indoors, most likely in pens where they would be able to move freely.

    �This is not free range, but simply having some room to move around inside a controlled environment,� Mr. Grover said.

    While converting barns for crate-free sows is relatively simple, Ms. Grandin said it was much more difficult and expensive to raise cage-free hens because not nearly as many birds fit in one building.

    Burger King officials say they hope that by promoting controlled-atmosphere stunning, more slaughterhouses will adopt the technology. Currently, there are only a few in the United States using the technique, and most of them process turkeys.
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