Of the Premier League’s top clubs Arsenal have an ownership structure that stands out as relatively unusual. Two major shareholders hold around 97 per cent of Arsenal Holdings Plc. For now at least…
American billionaire Stan Kroenke owns 67.05 per cent of the company through his company Kroenke Sports Entertainment UK Inc.
Kroenke first invested in the club in 2007, taking a 9.9 per cent stake from ITV plc, before joining the board a year later.
The 70-year-old further increased his stake in the following years by buying up the shares of directors Richard Carr, Danny Fiszman and Lady Nina Bracewell-Smith.
It was ultimately the decision of Fiszman, who had fallen ill, and Lady Bracewell-Smith to sell to Kroenke over Alisher Usmanov in 2011 that set the scene for the battle for control of Arsenal ever since.
Red and White Securities LTD have a 30.04 per cent stake of Arsenal Holdings, the majority of which came from the purchase of former vice-chairman David Dein’s shares in 2007.
This shareholding entirely belongs to Uzbek-born Russian billionaire Usmanov, who does not have a seat on the club board.
Usmanov’s stake had been split equally with Iranian businessman Farhad Moshiri until February 2016, when the latter sold his stake to invest in a 49.9 per cent holding in Everton.
The remainder of Arsenal Holdings’ ownership is made up of minor shareholders.
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Relations between the two largest shareholders at Arsenal have been cool for a number of years, with Usmanov not afforded a say in the running of the club, on whose board Kroenke and his son Josh serve.
Kroenke has run the club on a self-financing model and has not invested any of his own wealth into the running of the club. Usmanov has been a critical voice from the sidelines, for instance in 2012 blaming the board for failing to back manager Arsene Wenger in the transfer market.
Usmanov has never called for Wenger to be moved on – indeed one thing the two ownership rivals share is an enduring respect for the club’s 21-year incumbent in the dugout – but has suggested the manager needs greater support around him.
Just over a week before May’s FA Cup Final it was revealed that Usmanov had launched a £1billion takeover bid for Kroenke’s shares. KSE UK would subsequently insist that the club “are not, and never have been, for sale”, having rejected the offer.
A counter-offer of £525m for Usmanov’s shares has since been circulated. Were it to be successful Kroenke would be able to squeeze out the remaining minority shareholders and do with Arsenal as he wishes.
It should, however, be noted that a year ago speculation abounded that Usmanov could be set to sell up, to which his spokesperson responded: “Mr. Usmanov continues to be committed to Arsenal and considers his stake in the club as a long-term investment for his family and future generations.”