Arsenal have announced that their annual revenues have crossed £400m for the first time in the club's history.

However, club's cash reserves have taken a hit after heavy spending on player recruitment.

The North London club saw an increase in income from TV and commercial activities leading to an increase in the revenue from £350.6m the previous year to £422.8m.

The Gunners also witnessed an increase in wages to nearly £200m and a net spend of £102.5m on signings. This expenditure led to a decrease in Gunners' cash reserves from £191.1m to £144.3m.