Arsenal’s new era What Kroenke’s takeover means for the club and their fans
Usmanov agrees to sell his stake to American Supporters’ Trust calls it ‘dreadful day’ for club
Alisher Usmanov delivered a parting shot to Stan Kroenke yesterday after finally conceding defeat in the 11-year battle for Arsenal, claiming that a club now heading for sole private ownership for the first time in their modern history “could be the best in the world”.
Kroenke has described his planned £602 million outlay on buying the remaining Arsenal shares as a “new chapter” for the Emirates team, but concerns were raised last night by prominent former shareholder and honorary vice-president Lady Bracewellsmith. She previously sold her own shares to Kroenke but called it a “truly sad day for Arsenal Football Club”. The Arsenal Supporters’ Trust also insisted that it was a “dreadful day” for the club.
Many fans are upset at how Kroenke, who will pay £550million for Usmanov’s 30 per cent stake, then intends to exercise a legal option to complete the compulsory acquisition of the remaining shares. That will mean individual supporters being obliged to sell their stake and the club no longer being a public limited company.
The deal values Arsenal at £1.8billion, compared to £731million when Kroenke last made a takeover offer in 2011.
In the offer statement, Kroenke confirmed that he would then re-register Arsenal as a private company and argued that it would allow the club to move more quickly in pursuing their strategy. He pointed to how 18 out of the 20 Premier League clubs were now privately owned.
Arsenal were once known as the “Bank of England” club amid a postwar ownership history that largely passed through the Bracewellsmith and Hill-wood families.
Many supporters are concerned that it will mean less transparency and accountability, with the annual general meeting expected to cease and accounts to be published less frequently.
The absence of another sizeable shareholder would also mean that Kroenke could make structural changes to the company, but he has stressed that he wants to keep the current board, continue to channel heavy investment in the team and infrastructure and consistently challenge to win the biggest trophies in football.
Arsenal are close to agreement with Aaron Ramsey on a new contract, although tomorrow’s transfer deadline day will be more about who leaves, with the club open to selling striker Danny Welbeck and goalkeeper David Ospina.
It is understood that Kroenke and Usmanov have been in discreet dialogue since around February this year.
Usmanov has always wanted to buy out Kroenke and assume full control but reconsidered his position this year once it became evident that the American would not sell.
With no power or influence for what had grown to a £550million investment, as well as deep frustration at the direction of the club under Kroenke, Usmanov will now explore alternative investment opportunities in European football.
“I have decided to sell my shares in Arsenal Football Club which could be the best football club in the world,” said Russian billionaire businessman Usmanov.
Kroenke began his Arsenal investment in 2007 and did initially build relationships with supporters. The AST tried to promote a fan share scheme to encourage plural ownership, but they were deeply disappointed by their lack of direct contact after Kroenke became majority owner seven years ago and now the plans to exercise an option to purchase fans’ remaining shares.
“Kroenke taking the club private will see the end of supporters owning shares in Arsenal and their role upholding custodianship values,” said an AST statement. “The most dreadful part of this announcement is the news that Kroenke plans to forcibly purchase the shares held by Arsenal fans.
“Many of these fans are AST members and hold their shares not for value as custodians who care for the future of the club. Kroenke’s actions will neuter their voice and involvement. It is in effect legalised theft to remove a brake on how Arsenal is managed.”
Kroenke owns various sports teams in the United States, including the Los Angeles Rams in American football, basketball’s Denver Nuggets, ice hockey’s Colorado Avalanche, and MLS side the Colorado Rapids. Stan’s son, Josh Kroenke, has been taking an increasingly hands-on role at Arsenal in recent months and, with chief executive Ivan Gazidis expected to take up a new role with AC Milan, that is likely to continue.
“We at KSE [Kroenke Sports & Entertainment] are moving forward with this offer leading to 100 per cent ownership of the club,” said Kroenke.
The offer statement adds: “Private ownership is the most common form of ownership amongst the clubs of the Premier League. KSE believes moving to that model will bring the benefits of a single owner better able to move quickly in furtherance of the club’s strategy and ambitions.
“Mr Kroenke’s commitment to Arsenal remains unwavering.”
It will cost just over £600 million to complete a full takeover, with
£45.4 million coming from Kroenke and a bridge facility agreement with Deutsche Bank to cover the remaining £557 million. The offer document says this is not being funded by way of any debt finance for which the payment or liability will depend on Arsenal.
The departure of Usmanov and potentially also Gazidis continues the upheaval at Arsenal following Arsene Wenger’s exit as manager. New head coach Unai Emery will face Pep Guardiola’s Manchester City in his first Premier League match on Sunday.