Emery sacking cost £10m as Arsenal reveal £48m losses

The decision to fire Unai Emery and replace him with Mikel Arteta cost Arsenal around £10million, their latest accounts show, as the club revealed a colossal loss of almost £50 million for the year ending May 31, 2020.

The club’s post-tax loss of £47.8million was in large part due to the financial implications of the coronavirus pandemic, which was partially offset by the wage cuts accepted by the players and executives last year.

Emery was dismissed in November 2019 and the accounts show that the club had exceptional costs relating to “a number of changes in first-team coaching and support personnel” of £10.4million.

The figures have highlighted the importance of their controversial pay cuts last year, with wage reductions helping the club save £19million as the pandemic wreaked havoc on their revenue streams.

Arsenal’s overall loss would have been even more daunting if they had not been able to generate crucial funds through player sales, with the departures of Alex Iwobi to Everton and Krystian Bielik to Derby County helping to bring in £60.1 million.

Arsenal’s accounts do not include the proceeds of matches played after Project Restart last summer, when Arteta’s side won the FA Cup. The club said pre-tax losses of £35million were attributable to the Covid situation, with broadcast and match-day revenues taking huge hits.

The pandemic will also have a major impact on the next set of accounts due to the absence of supporters from matches this season.

Earlier this year, Arsenal took out a short-term £120 million loan from the Bank of England to help them cope with the impact of the pandemic.

On a more encouraging note, commercial revenues increased from £110.9million to £142.3million thanks to the renewal of their partnership with Emirates and the start of their kit deal with Adidas.