ARSENAL HOLDINGS PLC 2012 FINANCIAL STATEMENTS IN ACCORDANCE TO FFP RULES ? : THE DEVIL IS ALWAYS IN THE DETAIL.
As everyone would have expected , the last Financial Statements of 2012 , were presented by the board in pompous mode . Healthy cash balances as compared with a lower net group debt are indeed signs of a healthy position. Profitability also rose from 26.1 million last year 2011 to 36.6 million in 2012.
Arsenal Club Chief Financial Officer , Mr. Stuart Wisely stated in the report , I quote “ The Clubs strong financial position means that we are very placed to comply with the UEFA’s requirements and to pass any new tests that may be required”.
Ivan Gazidis , was less direct in his report and stated that “ The revenue growth will provide sustainable funds for future investment in the team whilst keeping with the FFP requirements”.
As the devil is always in the detail , I sat eyes on Deloittes Chartered Accountants statement “ Matters on which we are required to report by exception” on page 36 of the report .
The Senior Statutory Auditor , John Murphy stated the following ,
- Certain disclosures of directors remuneration as specified by law are not made : or
We have not received all the information and explanations we require for our audit
The above leaves much room for further thought in relation to the Financial Fair Play rules Articles 2 and 47 .
Article 2 – Objectives stresses the need for clubs to increase their transparency and credibility and Article 47 states that the annual financial statements must meet the minimum disclosure requirements.
So one has to see exactly whether Arsenal will pass the test or not in the foreseeable future.
Source : Arsenal Holdings PLC 2012 – Financial Report .