Arsenal has been counting the cost of living outside the Champions League with the latest club accounts showing a loss of £ 27.1 million.

The Gunners suffered an astonishing exit from the Europa League from this season’s competition Thursday night when Olympiacos secured a goal win away from home in the knockout match.

If he does not progress in the second level tournament, Arsenal, which reached the final of last season, will face a greater loss of money in potential prizes and additional income from transmission, as well as a reimbursement payment to the owners of season tickets for less cup matches.

On Friday, the parent company of Arsenal published accounts covering the year ending May 31, 2019, reporting the loss of the group for the after-tax period at £ 27.1 million, which was reduced from a gain of £ 56.5 million as of 2018.

While football revenues in general increased to £ 394.7 million from £ 388.2 million, benefiting from the increase in business income, the club said that overall operating profits were affected by the “continued investment in player salaries”, which increased to £ 231.7 million.

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The changes in the training team of the first team, the support staff and the “transaction advisory costs incurred by the company in relation to KSE UK Inc becoming the sole shareholder of the group” incurred an additional £ 3.9m.

The results showed that the player exchange activity for the period was “quite limited”, compared to the total sales benefit of some 120 million pounds in 2018 after the departure of players like Alex Oxlade-Chamberlain, Olivier Giroud and Theo Walcott.

Arsenal said that, along with other operating profits “negatively affected by participation in the UEFA Europa League compared to the more lucrative UEFA Champions League,” had “a significant impact on overall profitability.”

The registration of players during the period, which does not include the signing of Nicolas Pepe’s last summer club record, cost £ 99m.

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Arsenal reported a “robust” total year-end cash balance of £ 167m, below £ 231.3m in 2018, but a new kit agreement is expected to generate around £ 60m a year onwards.

Commenting on the accounts, Arsenal President Sir Chips Keswick said in a statement through the club’s website: “Our commercial player profit for this financial year was limited and this, combined with a second consecutive football season of the Europa League, has meant that the club recorded its first overall loss since 2002.

“For 2019/20 we will see greater commercial revenue from Adidas and our renewed agreement with Emirates, but another season outside the Champions League will continue to put pressure on our financial results.”

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