OK, according to the boys in the city, Arsenal Football Club is 'in-play', so expect more takeover and scaremongering in the next few weeks. The full picture is yet to emerge but I’ll try and paint as much as I can now, the main players being Dein/Kroenke, Wenger, and the rest of the board.
Kroenke, Dein & the Board
Chairman of AFC, David Dein who is responsible for signing Platt, Bergkamp and Arsene Wenger has left Arsenal with the club stating:
“On behalf of the Board I would like to express our gratitude to David Dein for the many years of loyal service he has given to the Club. We sincerely regret that irreconcilable differences between Mr. Dein and the rest of the board have necessitated a parting of the ways.”
Only yesterday, Hill Wood said that he, Danny Fiszman and Lady Bracewell Smith would not sell their shares, but did not mention Dein. The club have issued a statement saying that the three main shareholders pledge not to sell any shares for a year.
Dein has always wanted Arsenal to float (on the stock exchange), like Manchester United did, but the rest of the board members, including chairman Peter Hill-Wood and major shareholder Danny Fiszman, don't want that. It is rumoured that Dein has felt increasingly marginalised; he was not involved in the new stadium project. Some say this was because he objected to the debt and the effect on the ability to buy players. It is possible that he believes that Kroenke should be encouraged to buy into Arsenal so that players can be brought in.
So what are Dein’s plans with his 14% and Kroenke's (KSE, Kroenke Sports Enterprises) 11% would make 25%, still 5% off the 30% required to issue a takeover bid. Seemingly antagonised by the threat of a takeover it seems unlikely we will see either Fiszman or Bracewell-Smith sell for now. This raises an interesting question regarding the initial sale of the Fiszman’s shares. Did he not know that they were being sold to Kroenke? An unlikely prospect, considering the hype at the time surrounding the American billionaire. Could Dein have gone behind his back? Again I find this highly unlikely.
So who are the minor share holders, and could KSE buy the 5% before the shareholder pledge expires? Further shares could come his way from Lansdowne Partners, the hedge fund which owns around 3% of the club. This would bring his total to around 28%, very close indeed to the required takeover threshold. If this transpired, what scenario’s could unfold? Could Dein’s exit be followed by a Kroenke takeover and the re-installation of Dein in the Arsenal boardroom?
Stan Kroenke, known as “Silent Stan”, He owns Major League Soccer team, the Colorado Rapids, who recently signed a collaboration with Arsenal. Kroenke also owns franchises in the NFL (St Louis Rams), NBA (Denver Nuggets), NHL (Colorado Avalanche), America’s indoor football league (Colorado Crush) and the National Lacrosse League (Colorado Mammoth). He also owns Altitude, a sports and entertainment TV channel, and Denver’s Pepsi Center.
He is reputed to have assets totalling 1.02 billion, not that much considering Arsenal would lay him back around 600 million. However his wife is heiress to the Wall-Mart empire, is listed by Forbes 400 richest people in America as having a net worth of 3 billion.
Arsene WengerAlthough Dein was primarily responsible for the arrival of Arsene Wenger, and they are known to be close friends, some other facts are pertinent to these two individuals. Dein was against New Stadium and Wenger for it. We also now know Dein for American takeover – and by numerous statements made by Wenger, we know he was against it. So Dein’s departure does not necessarily mean Wenger will follow, as we know the Frenchman was “building a squad for the future”.
I anticipate a “stabilising” statement from will be issued by Arsene sometime today, however, understandingly the information coming out of Arsenal presently is meagre.