US tycoon Kroenke takes controlling stake in Arsenal

Arsenal became the latest English football club to fall into foreign hands yesterday when US sports tycoon Stan Kroenke took a controlling stake in the club after a protracted ownership tussle.

The deal announced by the north London club, English champions on 13 occasions, values the outfit at about £731 million (€825 million), according to a statement issued to the London Stock Exchange.

The secretive Kroenke, who has been building up his holding for the last four years, finally took control by acquiring those of two of the largest private shareholders – effectively locking a rival Russian businessman out of the club.

“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 Arsene Wenger. We intend to build on this rich heritage.”

Kroenke first bought 9.9 per cent of shares in the Gunners in 2007 and he increased his stake last month to within 10 shares of the threshold that forces him to make a takeover bid.

A full takeover was triggered after his Kroenke Sports Enterprises (KSE) company bought the stakes of Danny Fiszman (16.1 per cent) and Lady Nina Bracewell-Smith (15.9 per cent).

The majority of the remaining shares are held by Russian businessman Alisher Usmanov, whose holding company currently owns around 27 per cent.

Kroenke’s company also controls basketball’s Denver Nuggets, American football team St Louis Rams, ice hockey franchise Colorado Avalanche and Colorado Rapids Major League Soccer club.

The 63-year-old’s initial involvement was met with hostility by the club’s board with the patrician chairman Peter Hill-Wood famously declaring that Arsenal did not want “his sort” and that the “objective is to keep Arsenal English, albeit with a lot of foreign players.”

Hill-Wood later did a u-turn and welcomed Kroenke onto the board in a move seen as thwarting Usmanov’s ambitions. He is to remain as board chairman, Kroenke announced.

Wenger also welcomed the deal, saying: “I have worked with Stan Kroenke at board meetings over the past couple of years and I believe he has the best interests of Arsenal at heart.”

Arsenal are second in the Premier League, seven points behind leaders Man. United, who are owned by US tycoon Malcolm Glazer.

Chelsea are owned by Russian Roman Abramovich and Manchester City were taken over by Abu Dhabi’s Sheikh Mansour in 2008.

Liverpool were taken over by the owners of baseball’s Boston Red Sox last year having previously been owned by US sports tycoons Tom Hicks and George Gillett.

Fans of Manchester United have been deeply unhappy at the Glazer ownership of United after the sale of key players such as Cristiano Ronaldo while Hicks and Gillett, in particular, became hate figures for Liverpool supporters.

Arsenal are seen as one of the best-run clubs in the English top-flight and completed their move to the Emirates Stadium in 2006, on time and on budget.

Foreign owners have flocked to the Premier League since television deals with Sky Sports helped make it the world’s most lucrative domestic football championship and increased its global appeal.