Fans United Say No Further Sale of Shares Conn Concerns
Picking Pockets?
By Boris Mellor
April 12 2011
A standing room only meeting of the Arsenal Supporters Trust was united in calling on all shareholders to hold onto their shares in the best interest of the club. The trigger for Kroenke’s sudden, but not unexpected, takeover was the fact that he was able to acquire Danny Fiszman’s and Nina Bracewell Smith’s shares taken his holdings up to 62%.
According to the Guardian Fiszman is seriously ill, and his sons are not interested in the guardianship of the club. Allegedly, Usamanov (Red and White Holding) offered Lady Nina £13,000 a share but she preferred silent Stan’s £11,750. Whether this was out of loyalty or due to a binding agreement is not clear.
It is expected that a whole host of Arsenal names will be selling shares to Stan; Friar, Carr, PHW, Chips Whatshisname, Lord Harris of Carpets. However, AST believe that Red and White Holdings will keep their holdings for the present. The so called Russian has a fortune of $18 billion, and probably has more money down the back of his sofa than the £240 million he would get if he sold up.
AST finds itself in the strange position of hoping that Red and White, and, not so strangely, small share holders will not sell up. Those worried about if this is the last time they could sell their shares shouldn’t worry said one member from the floor, the AST will always buy them.
Clarification Kroenke is the owner
There has been a lot of rubbish talked in the media, firstly the shares are not quoted on the LSE, they are on PLUS. Secondly yes Stan has to make an offer to all shareholders to buy their shares, but if no one sells it doesn’t change the fact that he will be the majority holder and will appoint the board and run the club from top to bottom. Even if his holding stays at 62% he will be the new majority owner, albeit with minority shareholders who he can involve or ignore at will.
All Change and No Change
Kroenke has stated he will keep the present board and manager, and that he has no intention of changing them. That may be the case in the short term the long term could prove very different. He has also expressed his confidence in Arsene Wenger. Unlike the member who compared the great man to Hosni Mubarak, saying he was out of touch with ordinary fans. This was greeted with giggling, but fans wanted to discuss ownership not the manager. It is also likely that Gazides and Tom Fox are really Kroenke’s men, so he has a good deal of commercial control already.
Contrary to press reports Kroenke has, according to the AST, signed an agreement that he will not pay for the shares by taking out loans against the club. Apparently this promise is in a 90 page document outlining the offer. Gazides has intimated that he still wants to work with AST and still supports shared ownership.
The AST welcomed the opportunity to continue working with the club, but the key value of the AST remains, shared ownership, and that is why the vote to call on shareholders not to sell was passed unanimously.
Kroenke cannot buy out everyone unless he has 90% of all shares, it is unlikely that he wants to, or can achieve, that figure. Ironically we could all be dependent on Red and White Holdings to keep their shares or we could end up with a middle eastern mixed grill. One chicken and one camel, I am told it’s hard to taste the chicken.
David Conn The Guardian Disagrees on Funding Guarantee and Custodianship
David Conn disagrees that Kroenke's promises are a real guarantee, he doesn’t believe there are any guarantees that debt finance could not happen.
“Kroenke stated that the £239m he is paying Fiszman, Bracewell-Smith, Hill-Wood and the other Arsenal directors will not be funded "by way of any debt finance … which will depend on the business of Arsenal". Tom Hicks and George Gillett made a very similar claim in their 2007 offer to buy Liverpool but then, in Gillett's words, "circumstances changed". The pair took millions out of the club in order to pay the interest on their own borrowings.
There are no guarantees. Nor does it appear Kroenke intends to put money into Arsenal itself, only to pay his millions to the outgoing shareholders. That is what all yesterday's talk of the "self-sustaining business model" means – that Arsenal will run on what the fans pay over, for the £100 seats and other pricy tickets. Kroenke himself will not be contributing.”
Conn is a highly respected Football and Financial Journalist, his view on this needs consideration. He concludes “The American may indeed turn out to be a long-term, competent owner of this club of grand tradition. He may not turn a quick fortune for his Delaware holding company. But the word "custodian" is being debased and its principles need to be reclaimed.” The full article is here .
It’s ironic that Hill Wood will pick
up £4.7 million for his family shareholding, which is almost the same amount a 6%
season ticket price hike will raise. should we pass a vote of thanks to the board for selling out to Kroenke? Perhaps the money they have made is thanks enough?
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Edited 2 time(s). Last edit at 2011:04:16:14:58:26 by Padre Pio.
I have no great confidence that it will necessarily lead to any improvement on the transfers/players front either. Kroenke is a ruthless billionaire first, second and third and an Arsenal supporter way further down the list.
Surely there must be some other demands we can make on the Board ? Lobby for greater support involvement and say in running the club. Increasingly there are clubs in Leagues 1 & 2 where supporters have significant influence. Isn't this period of transition to new ownership the right time to start talking about this ?
If we had woken up to it 20 years ago we would have a far bigger stake by now.
Kroenke apparently says he will consult the AST, but no doubt it will be wallpaper. But I think fans who care should join AST. Its a pity nothing ahs been heard of Red Action during all this, too busy hating Usmanov
"When we had to suffer the team is a lion because they suffer together." 4 July 2020 at Wolverhampton Wanderers
Arteta on his team's first away victory at a club above them in the Premiership since September 2015 at Leicester.
While I agree with fan ownership should have been idealy the way foward, when a powerfull business tycoon like Kronke has acquired such a domimating sharholding in the club there is little scope for real fan input.
I think back to the strong opposition United fans voiced when Murdoch tried to buy United back in the 1990's, and yet ironicaly the man they all worship (Fergie) was essentialy the catalyst for the Glazer's taking over.
All the banners, marches and Norwich scarves hanvt done sqaut to force the Glazer's out and while United are winning and the stadium full the fickleness of fans will keep the disquiet down.
Time will reveal all but I dont reckon I wont be stiching together a "In Stan We trust" flag just yet.
"When we had to suffer the team is a lion because they suffer together." 4 July 2020 at Wolverhampton Wanderers
Arteta on his team's first away victory at a club above them in the Premiership since September 2015 at Leicester.
"When we had to suffer the team is a lion because they suffer together." 4 July 2020 at Wolverhampton Wanderers
Arteta on his team's first away victory at a club above them in the Premiership since September 2015 at Leicester.
Quote:Padre Pio
I think we should all roll over and let stan tickle our tummy.
Quote:Let's hope so then!!Padre Pio
It is surprising how small groups can affect things, its how they relate to larger numbers that counts.
"When we had to suffer the team is a lion because they suffer together." 4 July 2020 at Wolverhampton Wanderers
Arteta on his team's first away victory at a club above them in the Premiership since September 2015 at Leicester.
"When we had to suffer the team is a lion because they suffer together." 4 July 2020 at Wolverhampton Wanderers
Arteta on his team's first away victory at a club above them in the Premiership since September 2015 at Leicester.
also is there actually an alliance with usmanov or just similar decision not to sell
AST officially support him having a place on the board, its an unofficial unholy alliance.
As I said before if we had started fanshare 10 years ago we might have reached 30%. But no reason to stop now, we still may be able to pick up shares from people who dont want to sell to Kroenke and Usmanov.
I think Red Action are making a mistake keeping quiet - they are blinded by hatred of Usmanov. I hate him too, but needs must when the devil drives
"When we had to suffer the team is a lion because they suffer together." 4 July 2020 at Wolverhampton Wanderers
Arteta on his team's first away victory at a club above them in the Premiership since September 2015 at Leicester.
But joint ownership is the most important thing
"When we had to suffer the team is a lion because they suffer together." 4 July 2020 at Wolverhampton Wanderers
Arteta on his team's first away victory at a club above them in the Premiership since September 2015 at Leicester.
if usmanov got on the board is there not more chance that through working with other stan and usmanov would become friendly and end up one selling up to the other. Is it not better to keep usmanov away from the board as much as possilbe so that the ill feeling he has for them would mean he would refuse to ever sell to stan
Quote:why are AST backing him for a spot on the board, what is the reasoning for that, especially when one of his stated aims is for a dividend to be paid each year
It's laughable that an 18 billion man..who's dynasty is in steel, oil and commodity business is in Arsenal for dividends..I don't know who makes you believe that. Personally, I don't like this battle of the billionaires where the battlefield is too small..if he could think of putting his 200 million to sleep potentially might be for ever..dividends will be the least of his concerns..Eduardo.
"When we had to suffer the team is a lion because they suffer together." 4 July 2020 at Wolverhampton Wanderers
Arteta on his team's first away victory at a club above them in the Premiership since September 2015 at Leicester.
This is what I was talking about..I think this is the reason Usmanov wants to hold on..
Quote:However, in addition to the possibility of using dividends, Kroenke will have access to Arsenal's unrestricted cash reserve, which is approaching £100m. Another £40m cannot be touched due to restrictions under Arsenal's banking agreements.
Personally, I don't think using dividends to financing the loan is an issue..it's a bit of overstatement anyone could just use dividends to finance the loan..the turnover isn't anything close to that big.
"When we had to suffer the team is a lion because they suffer together." 4 July 2020 at Wolverhampton Wanderers
Arteta on his team's first away victory at a club above them in the Premiership since September 2015 at Leicester.
"When we had to suffer the team is a lion because they suffer together." 4 July 2020 at Wolverhampton Wanderers
Arteta on his team's first away victory at a club above them in the Premiership since September 2015 at Leicester.