According to Ken Friar the profits generated from the Highbury Square development project are separate from Arsenal’s usual accounts and as such are free for the club to use to reduce debt, buy a superstar (or 10 potential superstars) and pay for school tuition for Wenger’s young ducklings all in one go.
The question is, what will Arsene Wenger do? It’s not as easy as answering the original WWJD type of questions – Wenger isn’t about to go out and distribute the money to the poor and the needy, nor is he going to lock himself up with the money in his basement and romp through it naked.
My best guess is that while the board has the final say they will ask Wenger and he will ask them to put all the money into reducing the principal debt owed by the club. The club’s profits allow for reinvesting in the squad (if and when Wenger chooses to do so) and they are performing well in the league and in Europe so there’s no cause for concern.
On the other hand, spending some of that money to bring in experience and reinforcements into the squad (and especially the starting lineup) will put Arsenal and Wenger in a better position to keep their star players at the Emirates in the coming years, which is worth more than the debt owed by the club.