Categorized | Arsenal, Opinion

Right Idea, Wrong Target

I’m sure that by now, the majority of Arsenal fans are now aware of a group known as the “Black Scarf Movement”, a collection of Arsenal fans that are unhappy with decisions that the Arsenal board are making as regards to ticket prices, transfer policy and future dividends being given to board members. And on the face of it, a lot of their concerns are legitimate problems.

Are ticket prices at Arsenal too expensive?

An average of £1000-£1500. Per year. During a recession. To watch 10 men in red and white and an 11th in a green patchwork quilt run around on a perfectly manicured field every fortnight. If you can afford that, then it’s not a worry. But the longer that prices remain this high then the shorter the list of people who can afford it becomes.

Is the money generated being spent wisely?

£1,000,000 a month to pay Squillaci, Chamakh, Fabianski, Arshavin and Andre Santos. None of those would even make our bench if everyone at the club was fit. It’s impossible to deduce from that anything else other than our resources are not being spent as efficiently as we might hope them to be.

Should the board be entitled to draw dividends from the club?

They certainly are entitled to a wage from the club, they do work for it, after all. But if fans don’t get money off their season tickets if the club is successful, why should board members get extra money in the same situation? Especially when a good proportion of the money they would be drawing from the club would have come directly from the fans’ pockets? How is that fair?

These are all issues that definitely need addressing. The club is not operating in a fashion that is economically fair to the people that have supported it for the majority of their lives. It costs too much to be a football fan these days. The price of tickets, combined with travel, food and drink, and all the paraphernalia that comes with supporting a team (New jersey every year, membership fees etc.) is reaching obscene levels. I wholeheartedly agree that something needs to be done about the financial plight that Arsenal fans face today. There’s just one problem with the approach that the Black Scarf Movement is taking….

None of these problems are of Arsenal’s making, and there’s nothing they can do to fix them. NOTHING. Let me explain.

All of the concerns noted above have one recurring theme: Money. Twenty years ago, very few fans knew the financial status of their club. Now, thanks to the internet and the work of many talented bloggers such as our own @SwissRamble (Get well soon mate.) we all are now very much up to date as to how much money the club generates every year and how it’s being spent. And like any other part of life, with information comes more questions. The key to getting answers though is by asking the right people, and in protesting against the Arsenal board, I believe that the BSM are asking the wrong people.

It’s easy to assume that it’s Arsenal’s fault that Arsenal tickets are as high as they are, but ask yourself this, why do they need to be this high? Is it because the board are looking to make exorbitant profits, or are they looking to maximise revenue in order to keep up with the likes of Man City and Chelsea who are throwing money away like confetti? And whilst ticket prices are high, it’s hard to dispute that it’s not representative of market value when there are 38,000 people paying it and more joining a waiting list for an opportunity to pay it.

The problem isn’t that Arsenal’s tickets are expensive, it’s that in order to be competitive today, they HAVE to be that expensive. And even at the rate that they’re at today, our highest paid player is earning around half, HALF, as much as some of those playing in Manchester. The spending power of an elite few clubs today has completely skewed the odds of winning in their favour and everyone, including Arsenal, is struggling to keep up. And the worrying thing is this; it’s only going to get worse.

The Los Angeles Dodgers baseball team just signed a TV deal with FOX. It’s a 25 year deal that will net the Dodgers $240 million per year. PER YEAR. That single deal is higher than what 26 of the other 29 teams in baseball manage to make in total. In one move, the Dodgers have managed to propel themselves to the top of the list of teams who can spend money on players, ahead even of the money printing machine that is the New York Yankees, who make a fortune themselves from having their own TV network.

If FOX are willing to spend $240million a year to show the Dodgers on TV, then how much do you reckon SKY, who are owned by the same man who owns FOX, would pay for worldwide exclusive rights to Manchester United games if given the opportunity to do so? Real Madrid got one billion euros for seven years just for domestic TV rights, United would easily command double that fee for worldwide rights, if not more. All Premier League clubs currently receive around £50million a year from TV rights. If Man Utd suddenly started getting an extra £150 million a year, we’d only fall further behind them in terms of generating revenue, no matter how much we raised ticket prices by.

And if your rebuttal to this is, “Don’t worry, Financial Fair Play will save us.”, then you’re right, but only to a point. If FFP works, then everyone will be only allowed to spend what they can generate without a benefactor handing over hundreds of millions of pounds, which will stop clubs from losing gigantic sums of money. But it won’t stop clubs from continuing to exploit all possible revenue streams to gain an advantage over rivals. There will still be the need to keep up with the Joneses so to speak, and once all possible commercial avenues have been exploited, then the fans will again be asked to dig a little deeper in their pockets in order to help the club either keep up with their rivals or stay ahead of them.

Now that this genie has been let out of the bottle, there’s no way of putting it back in without implementing a world-wide salary cap that no club could breach. And whilst that’s a good idea in theory, no top club is going to give up an advantage as large as being able to out-spend others for “the good of the game”. This isn’t American sport, where franchises are as much as business as they are a sports team and owners implement rules that will benefit everyone so that everyone will make money. The only thing that football clubs were ever designed to do is try to win. Being financially superior wasn’t ever supposed to matter in whether a club can win or not, but it is now. And unless clubs unilaterally decide to even the playing field, then that’s how it will stay.

I don’t like that football has become as much about how many goals you can score as opposed to how many shirts you can sell. I don’t like that because football clubs can raise huge amounts of money every year, millions upon millions of pounds will be wasted on players that end up being of little or no use to us. I especially don’t like the prospect of someone owning our club and trying to keep us successful solely in order to make a profit for themselves. But this isn’t an Arsenal problem, this is a problem with football at large. And whilst I sympathise with those who feel like they need to organise a walk to raise their concerns, I can’t help but feel that they are targeting their grievances towards the wrong people.

It’s not a case of “Where has our Arsenal gone?”, but more like “Where has our football gone?”. And I know the answer to that. It’s gone to the bank. What I don’t know, is that it will ever come back.

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About Stephen Bradley

Gooner and below-average blogger who writes what he thinks, but sometimes doesn't think as he writes. Very occasionally makes a sensible point though, so watch out for that. Can be found on Twitter rambling away under the username @bradley08.
  • http://www.facebook.com/alan.ringer Alan Escobar

    Should the board be entitled to draw dividends from the club?

    At the end of the day Arsenal is a business and businesses pay dividends to their shareholders. If a business is performing well (i.e. – if a business is making healthy profit) then the shareholders are entitled to a dividend pay out. A bone of contention would be what the fans feel is a lack of investment in the playing staff, or the lack of reinvestment of funds raised from player sales.

    • Gary

      Unless AFC has declared dividends, or indicated that they plan to, this is not even an issue. Why raise this? Smoke and mirrors, nothing else.

    • Gary

      My previous response has disappeared. If Arsenal has not declared a dividend, and no indication has been given that they are contemplating a dividend, why is this being raised? Smoke and mirrors. It makes one wonder about the motives of the people raising this issue.

      • ladyarse

        None of your responses have been removed.

        • Gary

          touchy touchy. I did not immediately see it and the reference was there just to explain why I am repeating my post.

  • mushr00m

    That Dodgers contract isn’t worldwide rights. It’s just the right to air on local TV.

  • Pete The First

    All sensible points.
    The ticket prices are still too high. The club is able to get away with these prices while the team scrape by. If the fans get fed up with the performances expect spaces to appear in the crowd. It’s happening already. Does the club then drop prices to fill the stadium? Maybe.
    The strange thing is the club holding on to £70 million while not spending on players. What is this for? Kroenke? If not then surely this could be used to underpin reduced ticket prices. Wishful thinking, i know….

  • MarkJFine

    All valid points, and as you say, this is just the beginning. Sport is a business and it is owned by international corporations that provide entertainment as a service. Television and radio rights are just more marketing of that entertainment. Anyone that thinks otherwise is perhaps made unintentionally naive by the way it has slowly changed over the years… as it has been on this side of “the pond” for several decades now. The latter is a point you make in baseball, but can also be made in American football and basketball; at the professional as well as the university level (as much as the NCAA would like to regulate it).

    • MarkJFine

      Almost forgot the point: So, is this the Board’s fault? Wenger’s fault? Or are they just struggling to deal with their version of the “new normal”? I think it’s the latter.

  • Gary

    You are as crazy as the BSM. I’ll just focus on one issue. They “want action from the club to stop poor allocation of our money”. Did I read that correctly. Yes it says “our money”. I don’t know whether to laugh or cry. You mention Squillaci, Chamakh, Fabianski, Arshavin and Andre Santos. Sorry pal, but just who the f*** are you? Do you know for a fact how much they are being paid? Do you know for a fact whether the club has tried to sell any or all of them? Is your opinion of any of them more important than the manager’s (other than in your own mind) – and before you answer that one, tell me what did you think of Theo a year ago, Jenkinson when AW signed him, LK when AW signed him. If you still think you are qualified to make that statement – please explain to me what or who you have bought for more than £1m ever in your life and I am not talking about FIFA. Just because you watch Arsenal at the Emirates, and did at Highbury, play FIFA and fantasy league – your are not qualified to make the stupid statements you do, just like the BSM. FFS. And this is not in defence of PHW or AW or IG or anyone else at the club. But the most stupid person employed by AFC knows more than you will learn in your whole life. So put your little keyboard or bb away – you are making a mug of yourself.

    • ladyarse

      Wow….just wow….so basically your entire rant was ‘unless you have done the same thing you can’t have an opinion’ would this be correct?

      In that case, please point me towards your blog because if you don’t write one you aren’t qualified to give your opinion on this one by your own logic.

      Only person making a mug of themselves is you ranting like a loon and making assumptions about the writer of this piece.

      • Gary

        Pathetic response. Do you, or your blogger, know for a fact what these players are being paid, whether the club has tried to sell them, what AW’s opinion of each one is. No he does not, nor do you. So to sympathise with people saying their money is being mismanaged because of the wages paid to them is a joke, only many ignorant idiots will repeat it and then it becomes fact. To presume that you or writer know better than AW who to keep and who to sell is also beyond funny.

        I stand by my statement:- having an opinion and a keyboard qualifies you for nothing. Making stupid statements only confirm the faulty grey cells.

        • ladyarse

          I don’t really feel the need to engage in a defence of either myself of the writer of this post with someone who has been and continues to be aggressive. I’m sure you will take this as some sort of proof that you are right etc. Feel free to do so.

          • Gary

            Let me ask you another question. Has Arsenal PLC ever declared a dividend? If not, and you want to be taken seriously, should you not have pointed this out in your response to BSM? Why is this even part of the debate. Is there any reason to suggest that the board is considering a dividend declaration? If not, the line of reasoning by your writer is ridiculous, not so? Why does this matter need addressing?

            So if I am aggressive and because of that you do not want to defend yourself, I suggest your read the article again and ask yourself whether this was a lot of crap or not.

            BSM belongs in the looney bin. Don’t try and tell them they have valid arguments.

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