Josh Kroenke has already said exactly where Arsenal are at with £500m plan to supercharge transfer budget
10/22/2024 11:30 AM
When it comes to the very biggest decisions at Arsenal, Josh Kroenke is now arguably as influential as his father, Stan Kroenke.
Whether a conscious choice or not, Stan Kroenke has taken a less supporter-facing role since the cataclysmic backlash that followed his attempts to steer Arsenal into the European Super League.
And while he and his son both hold the title of co-chairman at the Emirates, it is Josh Kroenke who has become the public face of the ownership regime.
The venom that built up in the fanbase following the star-crossed Super League breakaway project has now largely dissipated thanks to the Mikel Arteta-inspired renaissance on the pitch in recent years.
Until recently, Arsenal’s lack of sporting success – and particularly their seven-season absence from the Champions League – had begun to be reflected on the balance sheet.
The Gunners have fallen behind their peers in the so-called ‘Big Six’ in revenue terms, generating £467m in total in 2022-23, their last published financial year.
Chelsea, whose revenue was the fifth highest in the Premier League, generated £512m over the same period. Revenue leaders Man City’s turnover was nearly £713m.
The gap will narrow thanks to Arsenal’s participation in the Champions League last season, where they reached the quarter-finals.
Tonight, Arsenal face Shakhtar Donetsk at the Emirates on the third matchday of the 2024-25 Champions League, which is the debut season of a new format that will be more lucrative than its predecessor.
But while new competitions and TV deals are big revenue streams, Arsenal’s bricks-and-mortar facilities are perhaps still the most significant element of the club as a business.
Arsenal plotting Emirates Stadium Expansion; Josh Kroenke confirms progress
With a capacity of just over 60,000, the Emirates Stadium is the fifth largest in the Premier League.
The stadium opened in 2006 and generates around £100m in matchday income each season. In fact, the Arsenal Supporters’ Trust project that cash through the turnstiles for 2023-24 will surpass £120m.
But with Man United plotting a sweeping redevelopment of Old Trafford and Arsenal’s North London rivals Spurs targeting £150m in matchday income, Arsenal know they cannot afford to stand still.
The Times are now reporting that Arsenal are currently exploring opportunities to expand the stadium in order to compete with their rivals on the pitch and in the transfer market.
Significantly, football finance expert Kieran Maguire has previously told TBR Football that Arsenal’s expansion plan will almost certainly cost £500m-plus.
However, any redevelopment will take years to complete. And Josh Kroenke has already signalled that Arsenal are only in the very earliest stages of the stadium project.
Speaking in the summer, the KSE supremo said: “It would be premature to talk about any plans in depth, but the internal conversations are starting to occur about [the stadium].
"It is not an easy renovation, but we see the possibilities of what's there.“
PSR, sponsorship and cash flow: The value of a stadium revamp to Arsenal
Any revamp of the Emirates would likely have a strong emphasis on corporate hospitality, which is enormously lucrative to clubs and makes them a magnate for sponsors.
Bayern Munich, for example, make as much income from their corporate hospitality seats as they do from the every other seat in the stadium combined.
It is not known how big Arsenal want to go with their expansion, but it would likely need to take capacity to 70,000 for the project to be commercially viable.
It is likely that upgrades could take baseline matchday income north of £150m.
An expansion would also give Arsenal leverage to renegotiate with naming rights partner Emirates.
