In my college days me and my friends did an economic profit analysis of Arsenal FC from 2004-2014.

We used Regression Analysis for doing that.

Data used from Emirates and Arsenal FC financial reports.
Small Glimpse of What Arsenal stands for

*These may be inaccurate now since we did this in 2015
Basic outlay/ layman of statistical methods we employed to get statistical inference from the available data.
What we wanted to analyse from the financial reports and why was this important this period imp.

The switch from Highbury to Emirates is the infliction point that lies in this decade of analysis.
At little background , these were the key sponsors and the other sponsors generated revenue mitigated the errors so it ultimately balanced out.

So only considerable Sponsors we were left with were Puma and Emirates.
This is the regression model that we used , the variables Xnt is explained in the next tweet
This is self explanatory
All these statistical tests here suggests that
1) There is direct correlation between profits / revenue generated/ net sales
2) These data sets giving out indications that X3 ie player sale and purchase will be the worst hit.
After above analysis we found out wages / Net transfer were insignificant

That's obvious , also it directly indicates the budget strains.

So we came up with another model to show that.
THIS IS THE INFLICTION POINT that rendered player sale , and other profits null and void.

We introduced this variable with operable values. Earlier we just took D = 0
In these tests we were able to capture that the revenue generated were most definitely diverted to mitigation of costs of construction of The Emirates Stadium.

Also it affected wage operations + Margins to buy new players at the behest of sone big big names.
These could be true or may not be but the assumptions are within the statistical parameters.

Also £ 260M debt (2006) and with inflation adjusted + interests comes out around £340M + £50M.

That has been going away from wage cuts + players sale + lack of investment
This is telling

Those big player's sale barely broke even for the wage structure to sustain.

Even with sponsor ship money and revenues ARSENAL were making 14 M pounds in losses.

How would they have signed big players?

As yourself.
End of thread.

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