AST Letter to the Board of Arsenal Football Club

The Arsenal Supporter's Trust has today sent this letter to the Board of Arsenal Football Club. We first raised our concerns about this issue in February. In last year's AST membership survey only 1% of our members supported raising ticket prices. We will keep all members informed of developments on this issue.

28 April 2011

Dear Ivan

The Arsenal Supporters’ Trust (AST) is writing to reiterate the concern we have already expressed to you regarding the proposed rise in the cost of season tickets and general admission tickets by approximately 6.5% for season 2011/2012. This is an increase that we estimate will generate approximately £4.5million in additional net revenue.

We wholly oppose this move and believe that the club should give serious consideration to cancelling it in favour of a thorough review of ticketing prices for the following season (we do understand that VAT has risen by 2.5% and appreciate that the club will need to factor this to ticket prices but do not see the case for any inflationary increase).

Our reasons are set out below and we would request a response from you ahead of any final decision being communicated to supporters. We are copying this letter to all members of the Board as it is important that all of them consider the views of supporters and the many reasons why we counsel against an increase.

The AST will be communicating with its members and the wider Arsenal family on this matter should the club decide to impose this increase and would therefore very much welcome input from you so we can correctly report and comment on the decision-making process.

As you will recall, the AST first raised this issue with you in February when we became aware of the plans to raise ticket prices. Our objection has nothing to do with recent results and everything to do with our concern that loyal Arsenal fans are being priced out of attending matches. The wider economic climate means that many fans are suffering. They can no longer afford the high cost of tickets, and we have been approached by many concerned members who tell us that accepting a price rise is no longer a matter of choice, but will force their exclusion as their finances just can’t stretch to meet it.

You will be aware of Arsenal’s status in charging some of the most expensive ticket prices in world football. With the added fact that seven cup ties have to be compulsorily purchased, along with the very limited concessions available for seniors and juniors, it makes the club’s ethos of ‘belonging’ look extremely remote for many.

A further reason to postpone the rise is the uncertainty caused by the takeover by Kroenke Sports Enterprises (KSE). The initial offer announcement by KSE is silent on whether dividends or management fees will be drawn from the club. The AST has welcomed the commitment not to load debt onto the club, but to date our questions about whether monies will be extracted from the club have not been addressed.

While we are hopeful that the KSE commitment to ‘self-sustainability’ and respecting Arsenal’s traditions and how it operates means they will not, I am sure you appreciate the perception that there will be if the price increase is implemented without the guarantee that it is not for the benefit of shareholders.

A simple application of supply and demand economics might indicate a rise can be ‘toughed out’ and it may be that the season ticket waiting list is robust. But we urge you not to take the loyalty of Arsenal’s fans for granted and to act as a custodian – for the long-term. We are pleased and impressed that you have established and cultivated a good relationship with supporters and worked on initiatives such as ‘Arsenalisation’ and the Arsenal Fanshare scheme. To us, this demonstrates that you value custodianship and recognise the importance of fans’ loyalty. We hope you will continue to show foresight in this area.

The AST’s independent analysis of Arsenal’s finances (widely judged to be accurate and fair both within and outside the club) demonstrates that the club has a healthy financial position despite the continued chronic shortfall in commercial revenues compared to our rivals. We know funds are available in the transfer proceeds account for squad investment, and that the wages to income ratio is one of the lowest in the Premier League. We are also aware of the delicate balance between football costs and income. However, the AST has for many years asked questions around the unaccounted for ‘other operating costs’. We understand commercial confidentiality but cannot understand why more analysis of these costs cannot be provided and further downward pressure applied to them.

If a further £4.5m is needed then we advocate other measures including:

• More efficient management of the current footballing squad, particularly in squad size and wage management
• Greater emphasis on securing income from overseas tours and through other secondary commercial deals, replicating the success that Manchester United have had in this area
• Using the final stage of the property sales at Highbury Square, Queensland Rd and other local sites

Effective action in all of these areas should secure enough additional revenue to more than offset postponing or cancelling the proposed increase and allow for significant investment in the playing squad which the AST has called for several times in the last eighteen months.

In conclusion, we ask that you postpone the increase for at least a year and commit to a full review of all ticket prices during that time. Many good ideas have been put forward by AISA and other supporter groups for a new and fairer approach to ticketing and these would tie in with the club’s own work.

Arsenal’s ethos and the importance of custodianship were much trumpeted in the recent takeover announcement. If custodianship means anything it is to look after the long-term interests of the club and demonstrate the same loyalty and appreciation of supporters as those same supporters show to the club throughout their lives. We urge you to reflect and look forward to your considered response.

Yours sincerely

Arsenal Supporters’ Trust