The latest news from Real Madrid bodes well for Arsenal and their behind-the-scenes finance team.
Real and Arsenal could have met in the semi-finals of the Champions League in 2023-24 had Mikel Arteta’s side met it past Bayern Munich in the previous round.
As it happened, the German side won 3-2 on aggregate and progressed to the last four, where they were beaten by eventual champions Real.
While there was disappointment about not being able to reach the semi-finals for the first time since 2008-09, the North Londoners’ return to the Champions League has been positive financially.
By the time this season’s figures are released, Arsenal will have earned well north of £100m across their last two campaigns in Europe’s top club competition.
That figure is dwarfed by Real Marid, however.
But another financial dimension of the Spanish side’s 15th triumph in the competition is a good omen for the Gunners
Real Madrid’s £77m Emirates windfall is good sign for Arsenal
Like Arsenal, Real Madrid are sponsored by United Arab Emirates airline Emirates.
As reported by The Athletic, Los Blancos are set to received a bonus of almost £5.5m for winning the Champions League and La Liga.
With the base fee included, that will take the total annual value of the front-of-shirt agreement to around £65.5m.
Arsenal’s deal with Emirates is worth £50m per season, although that includes the naming rights for their 60,000-seater stadium too.
News of the sizable trophy bonus will be welcomed by Arsenal supporters, who can now expect their club to trouser a similar fee if and when they get their hands on major silverware.
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Arsenal commercial income to keep climbing
The Gunners’ deal with Emirates expires in 2028.
They last renewed the partnership in August 2023, with a 25 per cent increase on the previous iteration of the deal.
By the time that contract has run its course, Arsenal and Emirates will have been partnered for 22 years.
That would make it one of the longest-running commercial arrangements in European football.
More broadly, Arsenal are in robust health financially as well as in the commercial department.
The £173m of income they generated through sponsorship and merchandise in 2022-23 was a club record.
And with their continued success on the pitch, that figure will rise again by the time they release their accounts for 2023-24.
Commercial income is part of a club’s baseline revenue (i.e. money generated from non-operating costs, such as player sales).
Many financial analysts consider this a more reliable way of evaluating performance than a simple profit-loss calculation.
Arsenal are faring remarkably well when looking at the finances through this lens.
Significantly, their EBITDA (earnings before interest, taxes, depreciation, and amortisation) is the highest in the Premier League at £118m.