- Apr 1, 2005
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Yes it is. They are separate budgets though and I remember Levy saying that the stadium budget wouldn't affect our transfer budget.
The point is that if you are always balancing the 'transfer budget' every window then you might find it harder to improve the quality of players at your club. Arsenal had to take on that strategy and stagnated for a long time. Recently they've begun to spend some money and have improved as a result.
Then we had a credit crunch and the banks scrambled to get their money back. Seizing Liverpool and selling them from under their owners noses for a debt of £200m. Levy then came out and said the stadium wasn't financially viable and looked to Stratford. Then Haringey said they'd pay for the 106 agreements so it was viable.
How does this affect our transfer budget? We don't know. It might have been the budget all along to have a £0 net spend, we don't know.
Arsenal have had money to buy players for a while. They lost a bit of money on the housing as the credit crunch happened but they still had money. It's just that Wenger didn't want to spend as he didn't see any good deals for players that were better than he already had. Arsenals payments were £20m a year for the new stadium, their increased revenue was about £60m. So they were immediately £40m a year better off. They still haven't paid it all off as the interest they have on the debt is very low so it's not worth it.