Sky Exclusive: U.S. tycoon Stan Kroenke in advanced talks to take control of Arsenal

[Calum]

Kroenke vows to deliver trophies after taking control at Arsenal​

Published 11:40 11/04/11 By MirrorFootball

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American businessman Stan Kroenke has vowed to bring silverware back to Arsenal's dusty trophy cabinet after taking a controlling stake in the club.
Kroenke Sports Enterprises, who first bought a 9.9% share in the club in 2007, will now seek to complete a takeover of the club after today increasing their stake to 62.89%.
KSE have reached undertakings with major shareholders Danny Fiszman and Lady Nina Bracewell-Smith and must now bid to buy up the remaining shares. Terms have been agreed with Arsenal shares priced at £11,750 and the club's value set at £731million.
Arsenal have not won a trophy since the FA Cup in 2005 but Kroenke has backed Arsene Wenger as manager and vowed to bring success to the Emirates Stadium.​

"We are excited about the opportunity to increase our involvement with and commitment to Arsenal," he said.
"Arsenal is a fantastic club with a special history and tradition and a wonderful manager in Arsene Wenger.
"We intend to build on this rich heritage and take the club to new success."
Kroenke has asked the existing board at Arsenal to remain in place.
"I am delighted that Peter Hill-Wood has agreed to support us by continuing as chairman," Kroenke added.
"We especially wish to acknowledge and thank the board, Danny Fiszman and the Fiszman family as well as Lady Nina Bracewell-Smith and her family for the confidence they have had in me over the past years and in allowing us to move forward in this more prominent role."
KSE already own the St Louis Rams NFL team, NBA basketball franchise the Denver Nuggets, the Colorado Avalanche NHL ice hockey team and Major League Soccer side the Colorado Rapids.​

As a director of Arsenal, Kroenke has already been through the Premier League's 'owners and directors test'.
KSE will have to provide the Premier League with a projected financial position to prove they can sustain running the club for the next 12 months before any takeover can be completed.​

Liverpool and Blackburn have already been through that process since the Premier League's new financial rules were introduced at the start of this season.
Kroenke has committed to continue to operate the club in line with its existing "self-sustaining business model" and he will not be funding his offer with debt finance secured against the club.
Kroenke's main focus will now be on purchasing the stake of Russian billionaire Alisher Usmanov, who does not have a seat on the board but controls 27% of the club's holding company.​

Arsenal's independent directors - Hill-Wood, Ivan Gazidis, Ken Friar, Sir Chips Keswick and Lord Harris of Peckham - are recommending that shareholders accept Kroenke's offer.
Hill-Wood reacted to KSE's initial share purchase four years ago by saying Arsenal did not want Kroenke's "sort" involved at the club.
But he said today: "The board of directors and I consider it a key responsibility to protect the ethos and spirit of the club.​

"Mr Kroenke, although relatively new to Arsenal, has shown himself to be a man who values and respects the history and traditions of this very special club that we cherish. We are confident that he will be a safe custodian of its future."
Gunners boss Wenger welcomed the news and said: "I have worked with Stan Kroenke at board meetings over the past couple of years and I believe he has the best interests of Arsenal at heart.
"He understands the club's heritage and traditions and our ambition to run the club in a way which protects our long-term future."​

Read more: US tycoon Stan Kroenke vows to deliver trophies after taking control at Arsenal - News - MirrorFootball.co.uk
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[Joss]

Riddling the club with debt is an understandable fear but the real danger is that the financial strait-jacket the club has been working under is not going to be lifted as it's milked for cash in the form of dividends. At least Kroenke is engaging with the AST though.

Financial straight-jacket?

Surely milking the club in the form of dividends would plunge us into debt? Just as the Glazers have done at Utd?

Talking of which: Will Stan Kroenke burden Arsenal like Malcolm Glazer has United? | Football | The Guardian

Interesting time for a takeover though, wonder if he wants it done with a view towards summer outlay?

METRO say he will give £70m to AW, which is bollocks, I imagine.

I doubt it but I agree - it's a very odd time to do it.. Apparently he resisted it a year or two ago at a similar time because of the title-race and the distractions it would cause...

Ah, here we go: I didn't want to mention it because a) it's pretty sad, and b) It would be worse if I was wrong, but the Guardian says:

"Tragically it is Fiszman's ill health that has dictated the timing of Kroenke's takeover. With sons who have scant interest in their father's football club, Fiszman was unable to create a dynasty of his own. So he has sought to manage an orderly succession to a man he views as capable of continuing his own legacy of careful husbandry."

---------- Post added at 01:07 PM ---------- Previous post was at 01:06 PM ----------

The Guardian is also hinting that one of Kroenke's first moves would be to buy the club out the Emirates sponsorship deal.. The £5.5m-a-year shirt sponsorship deal is below market value, and with Kroenke's solid contacts, he could easily negotiate a better deal. (via @YoungGunsBlog)

 

[Frank]

Really don't know what to make of this.

Would prefer us to stay how we are run atm, but if it means no Usmanov, then i'm all for Kroenke

 

[Mike.]

Financial straight-jacket?

Surely milking the club in the form of dividends would plunge us into debt? Just as the Glazers have done at Utd?

Talking of which: Will Stan Kroenke burden Arsenal like Malcolm Glazer has United? | Football | The Guardian



METRO say he will give £70m to AW, which is bollocks, I imagine.

I doubt it but I agree - it's a very odd time to do it.. Apparently he resisted it a year or two ago at a similar time because of the title-race and the distractions it would cause...

Ah, here we go: I didn't want to mention it because a) it's pretty sad, and b) It would be worse if I was wrong, but the Guardian says:

"Tragically it is Fiszman's ill health that has dictated the timing of Kroenke's takeover. With sons who have scant interest in their father's football club, Fiszman was unable to create a dynasty of his own. So he has sought to manage an orderly succession to a man he views as capable of continuing his own legacy of careful husbandry."

---------- Post added at 01:07 PM ---------- Previous post was at 01:06 PM ----------

The Guardian is also hinting that one of Kroenke's first moves would be to buy the club out the Emirates sponsorship deal.. The £5.5m-a-year shirt sponsorship deal is below market value, and with Kroenke's solid contacts, he could easily negotiate a better deal. (via @YoungGunsBlog)

yeah i read that about Fiszman, apparently he is gravely ill, as in likely not to even see in next season, sadly.

 

[Joss]

yeah i read that about Fiszman, apparently he is gravely ill, as in likely not to even see in next season, sadly.

Very sad. He has cancer. When he passes away, only then will Kroenke have access to his shares and increase his stake to 62%

 

[Grenwald]

I think, from what Ive read, this is a good deal for the club. It seems Kroenke will be a sensible owner, and has similar financial ideals to Wenger! Also, he is not purchasing his shares with debt secured on the club (like the Glazers did) so if Arsenal were to have a bad season in terms of revenue made, it wouldnt risk loan companies trying to administrate the club to get money back! Also, he has a proven track record at not messing up sports teams, and a quick bit of research leads me to believe that he invests sensibly and slowly, but his teams are more succesfull now than when he took over...
time will tell really how good the deal actually will be for Arsenal, but Im hopeful of a good, secure, trophy winning Arsenal long into the future!

 

[Joss]

I think, from what Ive read, this is a good deal for the club. It seems Kroenke will be a sensible owner, and has similar financial ideals to Wenger! Also, he is not purchasing his shares with debt secured on the club (like the Glazers did) so if Arsenal were to have a bad season in terms of revenue made, it wouldnt risk loan companies trying to administrate the club to get money back! Also, he has a proven track record at not messing up sports teams, and a quick bit of research leads me to believe that he invests sensibly and slowly, but his teams are more succesfull now than when he took over...
time will tell really how good the deal actually will be for Arsenal, but Im hopeful of a good, secure, trophy winning Arsenal long into the future!

To be honest, winning trophies should have nothing to do with who does or doesn't own the club, but I agree. Only time will tell...

 

[Grenwald]

To be honest, winning trophies should have nothing to do with who does or doesn't own the club, but I agree. Only time will tell...

The owner will affect an ability to win trophies, if as some1 mentioned above, the owners want profit, not trophies, they will draw out higher dividends, and leave less money available for transfers, just leave enough there to maintain position in the league, and maintain revenue. where as an owner who will take less dividends short term, to allow more money to be spent on players and facilities, could allow him to get more money in the long run. Owners business policy will make a massive difference to ability to win trophies...

 

[Mike.]

I think, from what Ive read, this is a good deal for the club. It seems Kroenke will be a sensible owner, and has similar financial ideals to Wenger! Also, he is not purchasing his shares with debt secured on the club (like the Glazers did) so if Arsenal were to have a bad season in terms of revenue made, it wouldnt risk loan companies trying to administrate the club to get money back! Also, he has a proven track record at not messing up sports teams, and a quick bit of research leads me to believe that he invests sensibly and slowly, but his teams are more succesfull now than when he took over...
time will tell really how good the deal actually will be for Arsenal, but Im hopeful of a good, secure, trophy winning Arsenal long into the future!

to be honest, Malcolm Glazer said exactly what Kroenke when they made their move in 2005, so only time till tell if he speaks the truth

 

[Grenwald]

to be honest, Malcolm Glazer said exactly what Kroenke when they made their move in 2005, so only time till tell if he speaks the truth

which bit did Glazer say? because the bit about not buying the club with debt came out of the stock exchange, not from silent stan.

 

[Mike.]

which bit did Glazer say? because the bit about not buying the club with debt came out of the stock exchange, not from silent stan.

"Kroenke Sports Enterprises [the purchasing vehicle] has stated that the offer will not be funded by debt finance secured against the club."

Fine words that any fan would want to hear, but that could be disingenious, it doesn't matter where any debt finance might be secured, once he owns Arsenal outright Kroenke could be taking £25m+ in dividends to pay for a leveraged buyout, with nothing to stop him.

---------- Post added at 01:48 PM ---------- Previous post was at 01:44 PM ----------

not saying it will happen, just saying you cant necessarily take everything at face value

 

[AdamArsenal]

Kroenke has been in a senior position at Colorado Rapids in the near past, and as I am sure most of you will agree with me, that we would rather have Kroenke than Alisher Usmanov?

 

[Grenwald]

"Kroenke Sports Enterprises [the purchasing vehicle] has stated that the offer will not be funded by debt finance secured against the club."

Fine words, but that could be disingenious, it doesn't matter where any debt finance might be secured, once he owns Arsenal outright Kroenke could be taking £25m+ in dividends to pay for a leveraged buyout, with nothing to stop him.

Ahh with you now. Explained that well! Well lets just hope he doesnt become a Glazer-esque type owner!
Looking at his other sports teams, Im hoping it wont happen! but we will see

---------- Post added at 01:48 PM ---------- Previous post was at 01:44 PM ----------

not saying it will happen, just saying you cant necessarily take everything at face value

 

[Joss]

Kroenke has been in a senior position at Colorado Rapids in the near past, and as I am sure most of you will agree with me, that we would rather have Kroenke than Alisher Usmanov?

Yes.

Ironically, Usmanov now has a key role to play in all of this in stopping Kroenke reaching both the 75% and 90% thresholds for more power in Arsenal:

"Once the shareholders have received the offer, they can either accept or decline it. In order for the Arsenal shares to be de-listed from Plus Markets - the junior stock exchange on which they are traded - KSE will need to control more than 75% of the shares. Even if the company got above 75%, that does not necessarily mean that the shares will be de-listed - for example if there are substantial numbers of independent shareholders who still want to hold their shares in a public company there could be a case where these shares are still traded on the stock market. However, even if the shares remained traded on Plus, KSE would have control of the company - and therefore the club."

"KSE says that if it acquires more than 90% of Arsenal shares (which would mean it had bought Alisher Usmanov's 27% stake) it might consider a compulsory purchase of any remaining shares - meaning that Arsenal shareholders who had refused to sell will have no choice but to cash in their holding."

Stan Kroenke's Arsenal takeover - live updates| Steve Busfield | Football | guardian.co.uk

In terms of comparing him to Malcolm Glazer, Matt Scott of the Guardian assesses that here, with the conclusion that basically time will tell:

Will Stan Kroenke burden Arsenal like Malcolm Glazer has United? | Football | The Guardian

 

[AdamArsenal]

Yes.

Ironically, Usmanov now has a key role to play in all of this in stopping Kroenke reaching both the 75% and 90% thresholds for more power in Arsenal.

Ya, this is going to make for a interesting few weeks I think, what do you think Usmanov will do? I reckon he'll come in with a big offer.

---------- Post added at 01:55 PM ---------- Previous post was at 01:53 PM ----------

Update on Usmanov:

This is what his close friend Ally says:

"Usmanov is in no mood to sell his Arsenal stake to Kroenke, says ally. He is livid, feels AFC stitched him up."

 

[Mike.]

Ya, this is going to make for a interesting few weeks I think, what do you think Usmanov will do? I reckon he'll come in with a big offer.

---------- Post added at 01:55 PM ---------- Previous post was at 01:53 PM ----------

Update on Usmanov:

This is what his close friend Ally says:

"Usmanov is in no mood to sell his Arsenal stake to Kroenke, says ally. He is livid, feels AFC stitched him up."

hardly stitched up, they made it clear that they didnt want him, if there had to be a takeover they'd rather have Kroenke

 

[Joss]

Ya, this is going to make for a interesting few weeks I think, what do you think Usmanov will do? I reckon he'll come in with a big offer.

---------- Post added at 01:55 PM ---------- Previous post was at 01:53 PM ----------

Update on Usmanov:

This is what his close friend Ally says:

"Usmanov is in no mood to sell his Arsenal stake to Kroenke, says ally. He is livid, feels AFC stitched him up."

Your good friend has taken someone else's words

He's not been stitched up at all, unless he means by Nina Bracewell-Smith and Danny Fiszman. I'm sure they (despite flogging their shares as soon as they can for as much money as possible) want what's best for the club and know Usmanov isn't.

Usmanov is a ******, but if he doesn't sell his shares (and doesn't launch a counter offer) then as fans, we can resist complete ownership from Kroenke, particularly if he's willing to work with AST and the Fanshare scheme.

 

[AdamArsenal]

Ya, if he doesn't sell his shares for the better of our club, then no fan is going to want him in charge, the ignorant *******.

 

[slbenficacoach]

Those entrepreneurs are dangerous, we gotta stop these things in football and keep the clubs were they belong with their fans, not some sugar daddy half-wits that appear from nowhere to use the clubs for money laundering, like Abramovich per example, sorry Chelsea fans, but it's true.

 

[Joss]

Usmanov has made counter offers to Nina-Bracewell Smith @ £13,000 a share.... REBUFFED