Arsenal have been tipped to splash the cash in the summer despite a conservative January transfer window. Last month, Mikel Arteta voiced his concern with the Gunners’ lack of depth of numerous occasions following injuries to Gabriel Jesus and Bukayo Saka, yet he wasn’t given any reinforcements.
The North Londoners didn’t make a move until it was too late; football.london understands Arsenal submitted a £40m proposal for Ollie Watkins, plus add-ons, in the final days of the window. Unsurprisingly Aston Villa rejected the bid, demanding £60m for the 29-year-old striker’s signature.
It’s understood that Watkins was keen on the idea of a move to the Emirates Stadium and, had the two Premier League clubs agreed on a deal, he would’ve made the switch. Unfortunately for Arteta, Arsenal fell short – despite having the ability to make a ‘monster’ offer.
According to Dave Powell, the chief business of football writer for Reach PLC, the Gunners are now well positioned to spend big in the summer. The football finance expert said: “For a period not too long ago, Arsenal were deemed one of the clubs to have to be extra mindful of PSR.
“Fast forward some 12 months or so and a return to Champions League football, followed by another year’s qualification and progression to the knockout phase, has yielded strong financial results for the Gunners that will make an impact on what they can and can’t do between now and the transfer deadline.
“While Arsenal haven’t published their 2023/24 financial accounts yet, the trend that can be expected has already been made known via the publication of the Deloitte Football Money League last month. Arsenal leapfrogged Spurs, Chelsea and Liverpool when it came to total revenue, with that expected to sit at £616m, up around a third year-on-year. That is hugely significant.”
Powell added: “The club are predicted to be PSR net positive for 2023/24 to the tune of around £29m, meaning the three-year net PSR position will be £14m, making an allowable loss for the club for 2023/24 of £119m, meaning that they have plenty of headroom and no PSR concerns.
“Assuming the same level of allowable deductions are applied, around £42m annually, to the current financial year of 2024/25, then the forecast is that Arsenal, for the current reporting period that runs until the end of May, could lose as much £164m before tax and still be able to remain PSR compliant.
“The club won’t get anywhere near that kind of loss having enjoyed another season in the Champions League, albeit with some additional wage spend and amortisation costs due to transfer activity. The Champions League run so far has booked them £77m, and that is before taking into account the four games already played at home, as well as at least one to come in the knockout phase.
“That would be worth around £20m to the Gunners, taking them closer to the £100m mark already. That means that revenues for the 2024/25 financial year are likely to be even higher than they were for the record-breaking 2023/24 period, and that means that they have plenty of dry powder for the market.”
On Arsenal’s hunt for a new striker and the potential complications Arteta may face, the football finance expert added: “They need a striker, and they have been linked with Ollie Watkins in recent days and a £60m bid, but with Jhon Duran sold to Al-Nassr for an initial £65m, it’s hard to imagine that deal gets over the line.
“Clubs know Arsenal have the financial wherewithal to spend in this market, so there will be very little on the market in terms of a good financial deal. Clubs don’t want to sell their best assets when they are either chasing something themselves or staving off the threat of failure. If they do both they and the player want compensating handsomely, over and above the market value.
“Whether Arsenal have the appetite for that now or feel they have enough to achieve what they need to now and wait for the right target to become available in the summer that would aid longer term success as opposed to a short-term view, remains to be seen.
“But they have no concerns over breaching any rules, even with a monster move before the deadline. If that doesn’t materialise then expect significant spend in the summer.”
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