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Kroenke On Board As Revenues Increase

Kroenke On Board As Revenues Increase

As the club released its financial figures for the year ended 31st May 2008 with pre tax profits up £10m they also announced that Stan Kroenke has joined the board as a non-executive director. Welcoming him to the board Chairman Peter Hill-Wood said "We are delighted to welcome Stan to the Board of Arsenal. He brings with him a wealth of experience through his direct involvement in sports clubs in the US and we expect to benefit from his commercial insights and knowledge."

Kroenke is apparently not a party to the lock down agreement currently in place between the other shareholding directors, which runs until 2012. However in adding his 12.2% shareholding to that of the existing board it now means that the board represents almost 60% of the total shares issued, adding stability to board decisions.

Stan Kroenke said "It is a real honour to be invited to join the Board of Arsenal given its pre-eminent reputation and position in football world-wide. I hope that my background in sports management will be an asset to Arsenal in its commercial dealings going forward."

The statement issued on the club`s website this morning included a statement indicating that Kroenke intends to increase, or at least reserve his right to increase his shareholding in the not too distant future implying that there maybe some movement in shareholdings somewhere on the horizon. The statement reads

Mr Kroenke, and any person who has acted in concert with him or any person who is subsequently acting in concert with him, reserves the right to increase his shareholding beyond 29.9% of Arsenal's issued share capital within twelve months, and to take any other action which would otherwise be precluded under Rule 2.8 of The City Code on Takeovers and Mergers, with the agreement of the Board of Arsenal or following the announcement of an offer or possible offer for Arsenal or if there is a material change of circumstances. Mr. Kroenke is not a party to the lockdown agreement which was signed by the other directors of Arsenal in October 2007.
The financial results reveal that nett debt has increased by £50m but this increase is accounted for by some £70m of extra loans taken on to complete the Highbury Square development. The club has revealed that the first phase of 65 apartments completed in July, which will only show in the current year`s accounts produced sales proceeds of £18.7m. While the club anticipates a 'significant level of property sales activity` in 2008/2009 it is also 'mindful of the current conditions in the property and mortgage markets.`

The financial results also show that wages have increased by almost £12mn over the previous year to £101.3mn. This is apparently as a result of improvement in key player and management contracts. As well as new player contracts Wenger himself extended his own contract last year.

While matchday and broadcasting revenues increased retailing and commercial revenues showed minor upturns and it is this area, with licensing now being handled internally following the ending of an arrangement where this had previously been handled by ITV, that Kroenke`s expertise may help us develop over the coming years.





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Writer:Amos
Date:Friday September 19 2008
Time: 9:54AM

Comments

0
So it seems like some of the board members are contemplating selling out or where on earth would stan be looking to purchase? Any thing to keep usmanov out.
gunnerchi
19/09/2008 10:02:00
0
When are we likely to see Highbury Square being in the balck? It's a great development, but with the current housing market it won't be the cash cow we thought it would be 5 years ago will it?!
navydave
19/09/2008 10:16:00
0
It is still being reported that 90% are sold and will be completed. I heard that there were 50 units still unsold that are going to be difficult to shift. May have to rent them out until the market settles or end up selling them at reduced prices. They'll probably wait until the 90% are paid up first though. Prices aren't yet down to 2003 levels so hopefully the original projections are still valid.
Amos.
19/09/2008 10:42:00
0
If they want to rent it one out to me for a tenner a month i'll take it! lol!! Very positive results for the past financial year and shows we are moving in the right direction and shows we don't need Usmanov or anybody else for that matter, to take over the club. We have a business plan that many other top flight clubs should follow and show it can be done. I'm happy that Kronke is on the board though in terms of a takeover, if it happens. Kronke would keep running it along the lines of how it is now. Unlike Usmanov who would screw it up, buy players without Wengers concent, Arsene would then leave and we would be in a right mess!
itsup4grabsnow
19/09/2008 12:25:00
0
Wealthiest side in London now it seems. :)
united4life
19/09/2008 13:24:00
0
I secretly admire the fact you made a profit, it's how a business should be run but times have changed and you'll one day become a rich mans plaything!
merlin
19/09/2008 20:22:00
0
Anyone familiar with the stand up of Chris Rock will know what I mean when I say, Chelsea are rich, Arsenal are wealthy.
Little Dutch
19/09/2008 20:23:00
0
I am pleased about this news as I always had a good feeling about Kroenke. I feel he will assist the club in it's attempts to grow and expand in a more organic way as opposed to the financially modified teams like Chelsea and Man City. I hope that the money that will be available in a year or so will be used by Wenger. Last summers departures show that the idea of a team growing together is one consigned to the history books.
VanPersie11
19/09/2008 20:46:00
0
And why is that consigned to the history books vp11? We came w4 points behind utd last year and even though Flam and Hlep left we have a side good enough to win the title and if we do that this year to what hights will we clime in the coming years with such a young side and with abundance of youth coming through the ranks? We seem, as fans, to be all to ready and jump on the media bandwagon and write our team off. Many of the pundits last year said that we would fall even further behind when the opposide was true and many of them have written us off already, bring it on and I predict that we will again suprise a lot of people.
Armory
19/09/2008 21:57:00
0
Very good point well made Armory. I made the mistake of underestimating Arsenal last season, I wont do the same tis tiem around. I like your theory about jumping on thebadwagon too, i mean, half the country already think it will be a two horse-race between Chelsea and Liverpool. I mean, ffs. Chill out.
united4life
19/09/2008 22:40:00
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