On Friday morning, Arsenal released their financial results for the year up to May 31 2022, confirming transfer-funding investment from KSE.

Edu and Josh Kroenke
via Arsenal

Arsenal posted on the club website on Friday to confirm that Arsenal Holdings Limited have signed off on the consolidated accounts for the Arsenal Group for the year ended 31 May 2022.

The headline was that the loss for the year after tax was £45.5m, down from £107.3m the previous year, but one notable statement came later on in the announcement.

Arsenal wrote that during the year, “KSE UK Inc. provided funds both to underpin the Club’s transfer activities and, alongside Barclays Bank, for working capital purposes as required”.

Explaining that decision, Arsenal highlight that they’ve invested strongly in the development of the men’s first-team squad to ensure qualification back to UEFA competition “as a minimum”, and “as a pre-requisite to re-establishing a self-sufficient financial base”.

They conclude that the return to the Europa League is a “positive first step”.

Essentially, the club are arguing that KSE investment in transfers was necessary to get the team back to a place where they can compete in Europe again, with the financial benefits that European competition brings.

The club’s owners were investing short-term funds in the hope that in the long term, Arsenal will be able to generate their own money again.

WOLVERHAMPTON, ENGLAND - NOVEMBER 12: Mikel Arteta, Manager of Arsenal applauds fans following their side's victory in the Premier League match between Wolverhampton Wanderers and Arsenal FC at Molineux on November 12, 2022 in Wolverhampton, England. (Photo by Harriet Lander/Getty Images)
WOLVERHAMPTON, ENGLAND – NOVEMBER 12: Mikel Arteta, Manager of Arsenal applauds fans following their side’s victory in the Premier League match between Wolverhampton Wanderers and Arsenal FC at Molineux on November 12, 2022 in Wolverhampton, England. (Photo by Harriet Lander/Getty Images)

It’s hard to argue with the fact that Arsenal needed investment to get back where they needed to be, and so far it seems the money was well spent.

The club’s recent signings have largely proven successful, and Arsenal currently top the Premier League table with a five-point gap to second.

On the other side of things, there’s obviously going to be concern about what this means for the coming seasons, and whether KSE will continue to invest if and when Arsenal reach the top – in order to keep the club there.

But for now, the fans can be cautiously pleased that the owners did at least manage to identify that investing in the transfer market was sorely needed, and that they subsequently did so.