Arsenal make the Rich List

Arsenal's move to its new stadium has seen it emerge as one of Europe's richest three clubs - and that explains just why the Barclays (sponsor) Premier League club is such a valued target for a takeover. Turnover of £200.8 million for the year ending May 31 2007 puts Arsenal into the same strata as Manchester United and Real Madrid. The London club is likely to be in third spot in Europe when the results for the same period are issued for the two other clubs, but the size of its match-day takings and its profitability will make Arsenal real rivals for United and put Real into the shade. In a year's time, when the cash for the new Premier League television deal is counted in, Arsenal and United are likely to be in a league of their own. No wonder Alisher Usmanov, the Uzbek-born billionaire, is circling the Arsenal wagons looking for a way in. Arsenal's results from its season at Highbury showed a turnover of £137.2 million, placing it ninth in the list in Europe. A year on, and turnover has shot up by almost £74 million, and profits are £51.2 million. The move to the Emirates (sponsor) Stadium is by far the biggest reason for the change - the 60,000-seater stadium is returning mouth-watering revenues of £3.1 million a game, more than double the sum achieved at Highbury. There are two notes of caution to be sounded, however, before Arsenal declares itself ready to supersede United. Firstly, there is still a considerable debt - some £260 million - to service even if, given these new figures, that should be comfortable enough. Of the £260 million, £210 million will be repaid at a fixed interest rate of 5.14% over 23 years while the remaining £50 million will be repaid at 5.97% over 25 years. Servicing the debt will cost Arsenal £15.3 million each year. Secondly, more than 10% of the turnover - £23.8 million - came from property development at its old stadium which is being turned into executive homes. That is an income stream that will soon disappear. Even taking those issues into account, the future looks bright - especially now manager Arsene Wenger has committed himself to the club and with the team leading the Premier League. The results also display the financial value of Wenger to Arsenal off the pitch, because his unerring eye for talent consistently allows the club to make a profit in the transfer market. Latest figures reveal an £18.5 million profit in player trading in the year up to May 31 2007, much of that coming from Ashley Cole's move to Chelsea. Next year's should also see a profit in player trading with Thierry Henry's sale to FC Barcelona enabling Wenger to stay in the black again. Arsenal managing director Keith Edelman has promised Wenger up to £70 million to spend - if he wants it. If history is anything to go by, Wenger will not take him up on his offer. However, the real irony of Arsenal's situation is that its success will not deter a hostile takeover bid - by contrast it will increase the chances of that happening.