Even though Arsenal FC announced half-yearly profit of £17.8 million and £123.3 million as cash reserve, they may not spend this money in transfers due to their ever rising total wage.
With UEFA’s Financial Fair Play with coming up soon, they need to do something fast to resolve this issue or else they will struggle yet again to spend in the transfer market.
Ever Growing Wages
Arsenal’s wage expenditure last season was around £143 million. But this has significantly risen as Arsenal renewed contracts to many players including bumper contracts to Walcott and Wilshere.
The common fear among Arsenal fans is that will they again sell their top players to balance the wages?
However, chairman Peter Hill-Wood insists that they won’t sell their stars from now on,
“Our ability to compete at the top of the game here and in Europe is underpinned by our financial performance.”
“Let me be quite clear that our intention is to keep our best players and recruit new talent to make us stronger.”
Will They Spend or Not?
But still there is some hope for Arsenal fans. If Arsenal manage to get rid of some of their unwanted players like (Arshavin, Squillaci, Bendtner, etc..), their wages will come down and they can spend that on giving big contracts to the new signings. If they fail to do this, then they cannot afford to buy world class talents or they will face troubles from coming up financial fair play rules.
It is also rumored that the £123.3 million cash reserve will be given as war chest to spend in summer. But don’t expect some 50 million signings. The whole war chest has to cover for player’s wages too, which means if Arsenal are buying a player for 20 million in a four year contract deal with 5 million per year salary deal, then total amount comes around 40 million. So What fans can expect is one or two 20 million buys in the Summer. Players like Jovetic and Villa fits the bill exactly.