Arsene Wenger and the board via Ken Friar and Peter Hill Wood played nearly all the questions like Geoff Boycott in his prime.
It was reassuring in these difficult times to have someone so quintessentially old school English as Peter Hill Wood.
But as things in many ways looked the same, things were different. This was the first time in the seven years of Arsenal Holdings AGM that the R word (recession) was being mentioned.
And next to Arsene Wenger on the board for the first time, the quiet American Stan Kroenke, who could usher in quiet revolution.
The message was positive. Arsenal are aiming for financial self sufficiency and the signs are they are getting there. Property is currently taking a major role. The cynics would say they’d paint a rosy picture anyway.
But as chance would have it – at an afternoon event in Lincolns Inn Fields, I chatted to lawyer heavily involved in the Emirates project – a non-Arsenal supporter, who said objectively Arsenal are in a relatively good position.
Although not selling the development to the design/build contractor or another developer, post-planning permission, and although the timing of the release of the units is not the best, they did renegotiate very good terms. He also sung the praises of Ken Friar and Danny Fiszman, as people to work with.
At an evening function – the North London Property Forum, at Plaisterers Hall the Emirates was mentioned – Buro Happold – involved in the Emirates was sponsoring the event. And the NLPF used the Emirates as a venue to promote Enfield’s regeneration policy.
The head of Housing Policy at the Greater London Authority also mentioned the Emirates flats. And said that London second hand house prices hadn’t gone up or down – they are static over the last three months. New build is slightly down on the quarter, which supports Peter Hill Wood’s view that getting to the £350m target is still a reasonable target, but will take longer.
The latest monthly land prices show inner London down 5% and outer London down 10%. Some parts of the country are down over 50% on the year. The obvious mistake is to take national averages and apply them locally.
With large infrastructure projects like the Olympics, Crossrail and the DLR extension, a big shortage of houses and flats in London, and the gigantic sovereign wealth funds waiting in the wings to pounce on London property assets there is no doubt property prices will recover sooner in London at least than the current gloomy predictions.
As for the flats – of the 680 units, 655 had been marketed and 598 sold. Of the 65 released in July, 54 had been sold for £21.3m; and of the 71 released in October, 46 had been sold for £18.1m. One hundred and thirteen were released last week.
Peter Hill Wood welcomed Stan Kroenke, saying he had a wealth of experience of sports marketing in the US. Danny Fiszman was indisposed, and Hill Wood wished him well.
Ken Friar gave the financial low down, saying group turnover was up £22.2m to £223m. TV revenue was up £24.1m to £68.4m. Matchday revenue was £94.6m -41% of the total and the lead component.
But wages had risen to £101.3m.
Mr Friar put up the relative turnover/wage costs of the other big three: Man U £212m/ £92m; Chelsea £190m/ £133m and Liverpool £134m/£78m and concluded that “we won’t talk about Tottenham”.
On asked about getting to £350m for the properties before 2010 (ASTs Nigel Phillips), Hill Wood said the £350m was still reasonable, although will take longer to get there. Hill Wood said Arsenal are continually talking to their bankers, as re-affirmed that the property side was ringfenced from the footballing side.
On being accused of spending more money on brick walls than back fours, Hill Wood said that the wage bill had risen to £101m and that expenditure on players is a top priority.
On being potentially vulnerable to recession given the high number of corporate and club class revenue bearing seats, Hill Wood said that the business model was robust and that Arsenal had a broad basis of revenue streams and although the economy was heading for difficult times, costs were under control.
On the ‘annoying’ digital advertising signs, Hill Wood agreed they were annoying, but brought in much needed income from advertisers. He said they were regulated and it is a question of balance.
On the circumstances of Keith Edelman’s departure, Hill Wood said there was a mutual vow of silence but “we are grateful for the work he did and wish him well.”
On keeping the custodianship of Arsenal, Hill Wood said the lockdown agreement lasted until 2012 and the board would strive to maintain the current set up “so long as you don’t get too fed up with us.” He added: “we are not going to sell out to the first man that comes along.”
On the wide number of qualities needed by the md including developing revenue streams and have power and influence in football circles and whether the board had considered splitting the role, Hill Wood said that had not been considered. He added that it was better to get the right person rather than rushing the appointment. And if the sucessful candidate wanted to add someone, then the board will consider that.
On the relationship with Red & White Holdings, Hill Wood said that the same information is given to you [the shareholders] as Red & White Holdings. He added that the relationship will evolve over the years.
On going on the AIM market and splitting the shares (10 x10p for every pound) enabling more supporters to own shares, given the prohibitive price of the current shares (£7650), Hill Wood said that the shares do trade surprisingly often on the PLUS Market (in ones and twos) and that he saw no advantage to splitting the shares.
On being questioned on the lack of trophies over the last three years, Hill Wood said that over the last ten Arsenal had won two doubles and been to two European finals and since the move to the Emirates, had only lost twice in 60 matches. He said that Arsenal have a fantastic young squad and he had every confidence of future success.