Arsenal have revealed their losses have risen to £47.8million in their latest financial results for the 2019-20 season.
The Premier League side confirmed their finances had taken a severe blow due to the outbreak of the coronavirus pandemic, which brought last season to a halt in March 2020 and did not restart until the financial year had concluded.
The north London outfit's accounts also showed £10.4m had been spent in exceptional costs due to 'changes to the first team management, coaching and support staff', which involved the sacking of Unai Emery in December 2019 and the appointment of Mikel Arteta later that month.
The pre-tax losses of £35million owing to Covid-19 consist of a £14m hit in matchday revenue, a £34m deferral of broadcasting revenues into the following financial year, and £6m worth of other broadcasting and commercial losses.
The overall wage cost finished at £234.5m, but the 12.5 per cent pay cuts that were taken by Arsenal's playing staff as well as their executives helped to save the club £19m.
The Gunners also recorded an increase on fees raised from selling players, up from £12.2m to £60.1m, largely due to the £35m sale of Alex Iwobi to Everton and Krystian Bielik's departure for Derby.
However, spend on players came in at £182.2m, which included the £72m paid to Lille for Nicolas Pepe, the £27m paid to Saint-Etienne for William Saliba and the £25m acquisition of Kieran Tierney from Celtic.
'Throughout the pandemic, the Group has moved rapidly in making the decisions required to proactively manage and mitigate risk across all areas of its operations and, where possible, to provide appropriate support to its community and stakeholders,' a club statement read.
'Since the year end the Group has refinanced its stadium finance bonds and undertaken a range of cost cutting measures.
'These steps will ensure the club is well placed to respond once the situation starts to improve.
'The financial challenge remains significant, but the club continues to have options available to it alongside the unwavering support and commitment of its ownership, Kroenke Sports & Entertainment.'
Source: m.allfootballapp.com