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Wednesday, July 11, 2007

Wenger’s transfer activity runs large profits and bulges the transfer kitty.

Excellent news coming out of Arsenal. And it is not only from the footballing side. Wenger, remember, has an economics degree and he is not one to ignore the financial side of the football business.

Sagna apparently has undergone a medical and is set to join for £7.5m. His pay will be £25,000 per week which translates to £1.3m a year.

But at the same time Freddie Ljumberg is finally set to join Fiorentina for, wait for it, £5.5m and Arsenal will be saving about £70,000 per week in wages or another £3.6m per annum! Since Freddie had another two years of his contract left then the saving on his wages is about £7.2m.

If you add the transfer fee of £5.5m then the total “income” from Freddie’s transfer will rise to almost £12.7m! Now this is what I call “good business”. Let’s hope it goes through.

If the Sagna deal goes through then the outlay for transfers so far will be as follows:

Dudu £8m
Sagna £7.5
Fabiansky £2m
H Nordveit £2m
Salaries for the above over the next two years: about £6m
(although I am not aware of Dudu’s salary I have assumed that it will be similar to Sagna’s and I have also added another £0.8m for the rest)
Total : £25.5m.

But if you look at transfer activity out of Arsenal then Wenger is very much in the black.

First and foremost is the huge saving on Henry’s transfer which amounts to £29m!

This includes the transfer fee received at £16m and the salary saved at £13m over the next two years (I chose two years so that a comparison could be made with the saving on Freddie’s salary which had two years to run).

Freddie’s departure will save another £12.7m as explained above.

But wait there are also the transfers of J Aliadiãre and F Muamba adding about another £4m in total.

If my arithmetic is right then total savings (over the next two years) from transfer activity out of Arsenal will come to a staggering £45.7m!

And an outlay so far (inclusive of the Sagna deal) of only £25.5m.

A profit of about £20m (and this doesn’t include the probable £6m to £8m that the sale of Reyes to Real Madrid will fetch!).

Add to this profit the £40m transfer kitty available to Wenger and you have a staggering £60m to spend on new players.

Come on Mr Wenger lets get some more retail therapy. We need it.

8 comments:

Nayan said...

While these numbers illustrate the prudence with which Wenger runs the show, they seem to assume sagna, fabianski, eduardo etc will work for free.

Its fine to factor two years worth of no longer paying ljungberg's underwear bills. But then you also need to factor in the £100,000 per week or whatever Bakary sagna's hairdresser charges. When you do the numbers dont look quite so in the black.'

Anonymous said...

I'm pretty sure he included the new players salary.... what's that all about dudu and bakary earning the same amount.... I'm pretty sure it's been factored in....

dave said...

Yes they are factored in. It says so in the post itself

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