Stan Kroenke Targets Arsenal
American Tycoon Buys More Shares in North London Football Club
The Arsenal Board of Directors are facing testing times as they attempt to keep control of the club in the face of a strong challenge from American tycoon, Stan Kroenke.
The pressure on Arsenal continues as American billionaire Stan Kroenke increases his holding in the club by buying further shares. If Arsenal Chairman thought that his robust attack and comments against a possible foreign takeover would deter the American tycoon, he was very much mistaken.
This story first came to light with the departure of Vice-chairman, David Dein, who was reportedly in support of possible investment by Kroenke. Dein favoured such investment as a way of addressing the problem of the millions of pounds that Chelsea owner, Roman Abramovich has been able to invest in the club to ensure that Chelsea are able to attract top class players who are capable of bringing lasting success to the west London club. To date it has worked with Chelsea winning the last two Premiership titles, winning the Carling Cup in 2005 and again this season. They are also in serious contention to add three more trophies to this year’s haul – Premiership, FA Cup and the Champions League trophy. Dein had always favoured Arsenal going public on the Stock Exchange as their neighbours Tottenham Hotspur first did in 1982 and Manchester United and other clubs have done since. He saw this as a way of increasing the finances available to the football club.
Peter Hill-Wood attacked any possible American takeover but Kroenke has added to his holding since Dein’s departure from the club and he now holds 12.19% and with Dein having another 14.6% share holding, Kroenke is almost in apposition to make a hostile takeover bid. Whenever, he has control of 30% of Arsenal’s shares, Kroenke must make public his buying intentions. His next target will probably be small share-holders who individually have no say in the running of the club but amalgamated in the hands of someone like Kroenke can become very useful and powerful.
Having invested a reported £73 million, Kroenke is not going to let the situation sit and the Arsenal Board can expect difficult times ahead.
The talk of such a move providing additional funds for transfer fees to sign new players and finance their massive salaries is bound to be supported by the fans and will go a long way to ensure that they are happy. However, traditionalists will see it as another English club falling into of the hands of foreign investors rather than remaining in the control of families and people who have been in charge of the club going back generations.
Arsenal could become the fourth Premiership club to come into the control of American tycoons. Manchester United, Liverpool and Aston Villa have already gone down that route.
