Forbes writer, Bobby McMahon, has made a prediction over where Liverpool and Arsenal’s revenues will be come the end of the season, and it’s a bold one.
McMahon believes that, given Arsenal’s 2016/17 financial record and his projections for Liverpool, the Merseyside club will overtake the Gunners in terms of revenue by next year.
In 2016/17, Arsenal’s total revenue before tax was £44.607m. It’s predicted that Liverpool’s was £21.561m – predicted, because they’re yet to turn in their financial records for last season.
A lot of factors make up this number: media deals, commercial deals, match day earnings, property, salaries, cost of sales and transfer fees to name a few.
Last season, Arsenal generated £52.5m more than Liverpool in TV money and grew commercial revenue by £10m. However, the Reds have closed the gap when it comes to matchday revenue, since they’ve expanded the stadium to 54,000 seats.
In 2017/18, Arsenal have lost out on Champions League football to Liverpool, which could allegedly result in a revenue swing of over £100m. This also means that matchday revenue will again rise for the Merseysiders while they’re also expected to maintain a commercial advantage.
In total, McMahon reckons that Liverpool’s total 2017/18 profit before tax will be £36.112m and Arsenal’s will be £16.626m. Although we already knew that not having Champions League this season would have an impact on the club, this is massive. It shows exactly how far Arsenal are falling behind the rest of the pack while others improve.
I recommend reading McMahon’s study in full here.