Arsenal's wrong turn

Friday, 10 July 09, 04:01 PM · Comments(1)

By Michael Sinnerton

Arsenal's unique take on ownership took another twist this week when the board, and its financial advisors, Rothschild, turned down an offer to underwrite a ‘rights issue' proposed by Alisher Usmanov. Days later Stan Kroenke, Arsenal's largest stake-holder, purchased 160 shares at £8,500 each, to his stake to 28.58%.

For those who don't know, if and when Kroenke reaches 30% he is obliged to make an offer for the remaining shares. The Uzbek must be frustrated at the board's seeming favouritism particularly when his ‘rights issue' seemed a relatively sensible proposal. The chief shareholder, and anyone else, would be able to buy ‘new' shares creating cash. The issue would mean Usmanov and other shareholders reaching into their piggybanks rather than plunging the club into debt. It was hoped around £150m could be raised, £60m of which would be made available to Arsene Wenger and the rest put towards the clubs reported £416m debts.

As David Conn points out in the Guardian care could have been taken to protect the stakes of smaller shareholders whilst providing an example to owners of the other big clubs whereby the benefactors invest real cash with no strings attached and no borrowing. As many of Arsenal's largest shareholders have made huge money selling shares, to Kroenke in particular, I think they should have been willing to give something back.

Ivan Gazidis claimed that Arsenal don't need the money, i.e. they are paying off the debt comfortably a bit at a time and don't want to overpay in the current inflated transfer market. But I'm not sure that's true, are Arsenal fans really happy to continue to invest in youth and, more than likely, end up 4^th? Wouldn't they prefer a big investment to give them the possibility of a real title challenge, particularly given the positive news announced this week?

With Van Persie signing a new deal and Eduardo and Rosicky potentially back as first team players Arsene has a hugely dangerous and talented bunch of attackers to choose from. Defensively (and I include the midfield in this) the team are miles short of Liverpool, Chelsea and Manchester United. Two or three top quality signings could see this Arsenal team really succeed (not necessarily to the detriment of the youngsters).

Do the fans want the club to push on or are they really happy being ‘just' great to watch but ultimately trophyless?

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