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Disposals rescue Arsenal interims

Article Date:  Mar 01 2001

Ofex-traded Arsenal FC has turned an interim operating loss of £5 million into a pre-tax profit of £32.8 million by selling half of its internet rights to Granada and two players to Barcelona. Robert Tyerman reports.

At the operating level, Premiership club Arsenal converted a previous £5.8 million profit into a loss of £5 million in the six months to last November. Chairman Peter Hill-Wood blames this on moving back from Wembley to Highbury, with room for fewer fans for home fixtures in the UEFA Champions League, and on playing fewer Premier League home fixtures than last year.

However, profits on the disposal of a half share in Arsenal's internet rights to Granada and the sale of players Marc Overmars and Emmanuel Petit to Barcelona enabled the club to chalk up interim pre-tax profits up £10.7 million to £32.8 million. In October, meanwhile, Granada Media paid £27 million for a five per cent stake in the club.

Hill-Wood says he is confident Arsenal's operations will return to the black in the second half, helped by its progress this season to the second phase of the UEFA Champions League. Longer term, he expects Arsenal's planning application for a new 60,000-seat stadium at Ashburton Grove to be decided this summer.

Arsenal's shares are currently quoted at £2,200 each, down from £2,650 earlier this year. It is not a liquid market.

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