London, England (CNN) -- English Premier League club Arsenal have posted record pre-tax profits of $88 million.
The north London team, of whom American businessman Stan Kroenke is a major shareholder, announced they had paid off their debt on former stadium Highbury, which was turned into a development of apartments.
With an increased capacity at their new Emirates Stadium, and money received from high-profile transfers, the Gunners' financial figures up to May 2010 revealed pre-tax profits had increased by $16 million on the previous year.
Ivan Gazidis, Arsenal chief executive, told the club's website: "It is important that we continue to develop a vibrant and robust business with sufficient revenues to sustain success.
"The group has made good progress over the last year and I am excited by the opportunities which we have in front of us."
Arsenal's accounts show they have sold 362 apartments at the Highbury Square site -- the club's home between 1913 and 2006.
The sale of apartments, combined with a social housing site nearby, made the club $247.6 million and allowed them to repay $204.5 million of bank loans.
The club's turnover increased from $493 million to $599.4 million as a result of successful property sales while operating profit before depreciation and player trading in the football business was down $9.3 million to $89.6 million due to increased wage costs.
Arsenal's profit from transfers -- including the sale of Emmanuel Adebayor and Kolo Toure to rivals Manchester City -- was $21.4 million up from $4.5 million the year before.
Peter Hill-Wood, Arsenal's non-executive chairman, told the club's website: "The most pleasing aspect of these results is that the returns generated in the property business during the year, particularly at Highbury Square, have allowed us to repay £130 million ($205 million) of bank loans and significantly reduce the group's overall net debt.
"We now have a debt free property business which is accumulating surplus cash as further unit sales are made at Highbury Square and which has three further property assets to realize over the next few years."