American sports tycoon bids for full ownership of Arsenal
US sports mogul Stan Kroenke on Tuesday made a 615 million euro bid to take full ownership of Arsenal football club. The deal with Russian billionaire Alisher Usmanov for his 30 per cent stake in the London club would see Kroenke take full control of the Premier League team, valuing it around 2 billion euros.
Issued on:
Kroenke Sports and Entertainment (KSE) already owns 67.09 per cent of the club, according to a filing with the London Stock Exchange. The conclusion of the deal “will result in the opening of a new chapter in the history of the Club”, a statement said.
“KSE believes that taking Arsenal under private ownership will bring the flexibility necessary to drive greater success of the Club and intends to continue to develop the Club as a leading football club on both the domestic and global stage.”
Kroenke originally bought into the club in 2007 and has gradually increased his stake. He is also owner of the Los Angeles Rams American football team.
Usmanov, who made his fortune in the steel industry, bought a 14.5 per cent stake in Arsenal in 2007 for approximately 110 million euros through a company called Red and White Securities.
Arsenal finished in sixth-place last season and long-standing manager Arsene Wenger left the club, replaced by Unai Emery, former coach of Paris Saint-Germain.
Supporters of the club described the bid by Kroenke to take full ownership as “dreadful” in part because fans will no longer be able to hold shares in the business.
“Stan Kroenke taking the Club private will see the end of supporters owning shares in Arsenal and their role upholding custodianship values,” said a statement from Arsenal Supporters Trust (AST), a group which boasts some 1,000 paying members.
If the offer is accepted by Usmanov, it would result in the automatic sale of the remaining minority shareholders.
The deal is being funded by Kroenke through 50 million euros in cash and a bridge loan facility with Deutsche Bank.
“The most dreadful part of this announcement is the news that Kroenke plans to forcibly purchase the shares held by Arsenal fans,” said AST.
“The AST is also extremely concerned to note that this purchase is being funded by a loan,” the supporters group added.
Former Arsenal player Ian Wright reacted to the deal in a tweet writing, “Oh God Noooooooooooooooo.”
Oh God Noooooooooooooooo. ???????? https://t.co/ip3TRAdWBs
Ian Wright (@IanWright0) August 7, 2018
The deal is expected to close on 28 August following acceptances of the offer.
Daily newsletterReceive essential international news every morning
Subscribe