What is Arsenal's Spending Under Arteta?

Arsenal's impressive investment in player signings under manager Mikel Arteta is projected to exceed £900 million, particularly if they secure the services of Crystal Palace's Eberechi Eze. This potential signing would push their summer spending to approximately £250 million, reflecting a significant commitment to strengthening the squad.

Last updated: 01 September 2023 (BST)

Key Takeaways

• Arsenal's spending under Arteta is set to surpass £900 million.
• The club has already spent nearly £190 million this summer.
• Recent financial performance shows strong revenues despite losses.
• Player sales have not kept pace with spending, contributing to financial scrutiny.
• The club aims to balance investment while adhering to profit and sustainability rules.

Mikel Arteta's Spending Strategy

Since taking over as Arsenal manager in December 2019, Mikel Arteta has proved to be a transformative figure. His tenure has seen the club evolve into serious contenders in both the Premier League and European competitions. With the potential signing of Eze, Arsenal's outlay this summer could reach £250 million, a significant part of their total spending which is expected to exceed £900 million over his managerial reign. This strategic investment aims to build a squad capable of challenging for titles.

Recent Transfer Activity

This summer alone, Arsenal has signed six players for close to £190 million. Notable among these is the £55 million fee for Swedish striker Viktor Gyokeres from Sporting. The anticipated deal for Eze is reported to be worth around £60 million, which could elevate Arsenal’s total transfer expenditure to nearly £270 million if all add-ons are activated.

Historical Spending Trends

Arteta’s first five full seasons at the helm have consistently seen Arsenal invest heavily in player acquisitions, with each season witnessing outlays exceeding £80 million. The figures have been substantial: £143 million in the 2021-22 season, £159 million in 2022-23, and £199.3 million two seasons ago. This trend places Arsenal as one of the highest spenders in the Premier League since the 2020-21 season, trailing only behind Chelsea, Manchester United, and Manchester City.

Financial Context and Club Revenue

Arsenal's financial health is bolstered by a robust commercial operation and the benefits of consistent appearances in the Champions League. The club's revenues have surged by nearly £150 million from the previous season, largely due to increased matchday attendance, broadcasting rights, and commercial activities. This includes an impressive rise of over £70 million in broadcasting revenue, attributed to their progress in European competitions.

Profit and Sustainability Rules

Despite operating at a loss in recent years—£45.5 million in 2021-22, £52.1 million in 2022-23, and £17.7 million in 2023-24—Arsenal remains compliant with the Premier League's Profit and Sustainability Rules (PSR). The club’s total losses over three years amount to £115.3 million, exceeding the permitted £105 million threshold. However, they can offset some of these losses through 'add backs'—expenditures deemed beneficial for the club and football at large, such as investments in youth development and infrastructure.

Transfer Market Dynamics

While Arsenal has shown a willingness to invest in new talent, their ability to generate revenue through player sales has been limited. Recent seasons have seen player sales fall below expectations, with only two instances of total sales surpassing £50 million in the last five years. The highest fee received for a departing player remains the £35 million garnered from Alex Oxlade-Chamberlain's transfer to Liverpool back in 2017.

Potential Player Sales

To balance their books and possibly fund further acquisitions, Arsenal may need to consider offloading some players. Several individuals, including Fabio Vieira, Oleksandr Zinchenko, Reiss Nelson, Jakob Kiwior, and Albert Sambi Lokonga, were not included in the matchday squad for the opening day of the season and could be potential candidates for sale. The injury to Kai Havertz has prompted the club to reassess its strategy, potentially accelerating moves in the transfer market.

Future Outlook

As Arsenal prepares for its third consecutive Champions League campaign, the financial outlook remains optimistic. The club anticipates similar revenue streams for the 2024-25 season, especially if they progress far in the tournament. The sales of players like Emile Smith Rowe and Eddie Nketiah could contribute positively to their financial standing, as both would be considered 'pure profit'.

Conclusion

Arsenal's aggressive approach in the transfer market under Mikel Arteta demonstrates a clear ambition to reclaim their status among England's elite clubs. The potential signing of Eberechi Eze could further enhance their squad depth, but the club must navigate its financial commitments carefully to remain compliant with sustainability regulations. As the transfer window progresses, the focus will remain on balancing investment with strategic player sales, ensuring Arsenal's long-term viability in a competitive landscape.

FAQs

What is Mikel Arteta's total spending as Arsenal's manager?

Mikel Arteta's total spending on player signings at Arsenal is set to exceed £900 million, including recent high-profile acquisitions.

How much has Arsenal spent this summer?

Arsenal has already spent nearly £190 million this summer, with potential total spending projected to reach around £250 million if all deals are finalised.

What are Arsenal's financial challenges?

Despite significant revenues, Arsenal has posted losses over recent seasons, exceeding the Premier League's Profit and Sustainability Rules. However, they can offset some losses with strategic investments.

How does player sales impact Arsenal's finances?

Player sales have been relatively low for Arsenal, with only two seasons in the past five yielding over £50 million. This limited income impacts their overall financial flexibility.

What does the future hold for Arsenal's financial strategy?

The club aims to balance aggressive player investment with compliance to financial sustainability rules, focusing on maintaining revenues from Champions League participation and player sales.