Stan Kroenke finalized what was reported for much of Sunday by taking a controlling stake in Arsenal with 62.89% of the shares. The American businessman will pay £11,750 a share and that valuation, plus the club's £147 million of debt put the club's value near £900 million. Kroenke first bought into the club in 2007 when he bought 9.9% of the club and is now obligated to offer to buy out the remaining shares in the club.
Stan Kroenke Finalizes Deal To Take Controlling Stake In Arsenal
“We are excited about the opportunity to increase our involvement with and commitment to Arsenal,” Kroenke said in a statement. “Arsenal is a fantastic club with a special history and tradition and a wonderful manager in Arsène Wenger. We intend to build on this rich heritage and take the club to new success.”
“I am delighted that Peter Hill-Wood has agreed to support us by continuing as chairman. We especially wish to acknowledge and thank the board, Danny Fiszman and the Fiszman family as well as Lady Nina Bracewell-Smith and her family for the confidence they have had in me over the past years and in allowing us to move forward in this more prominent role.”
Hill-Wood has agreed to stay on as the club's chairman, a decision that is somewhat surprising considering that when Kroenke first bought into the club Hill-Wood said that he didn't want Kroenke's "sort" in the club. Nevertheless, Hill-Wood will continue to serve as the club's chairmain and expressed support for Kroenke's takeover.
“The board of directors and I consider it a key responsibility to protect the ethos and spirit of the club. Mr Kroenke, although relatively new to Arsenal, has shown himself to be a man who values and respects the history and traditions of this very special club that we cherish. We are confident that he will be a safe custodian of its future.”
Now that Kroenke has bought out Danny Fiszman and Lady Nina Bracewell-Smith, the question now is whether Russian Alisher Usmanov will sell his 27% of the club. He controls just about the all of the remaining shares of the club, but he is not on the board and has not commented on Kroenke’s takover.
Kroenke will become the 10th foreign owner in the English Premier League, but he will not saddle the club with the same debt that led to tenuous American ownership at Liverpool under Tom Hicks and George Gillett or Manchester United’s controversial ownership with the Glazer family. A statement to the stock exchange made clear that the club would not be put in any financial uncertainty with the takeover.
“The offer will not be funded by way of any debt finance (banks loans, payment in kind loans or other debt or quasi-debt interest bearing obligations) for which the payment of interest on, repayment of or security for any liability (contingent or otherwise) will depend on the business of Arsenal.”
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