Rules (of Football Club Ownership) & How to Break Them, by S Kroenke

Friday’s blog post on KSE buying two Arsenal shares got a fair bit of interest. You will recall that Stan Kroenke, under the guise of Kroenke Sports Enterprises, bought two shares in Arsenal on 11 July, but this wasn’t announced until four weeks later. This is despite Mr K being a Director of Arsenal, which means that any share trades have to be announced ‘as soon as possible’. In stockmarket terms ‘as soon as possible’ means the next working day at the latest, but for whatever reason – and naturally no one has given us one – the announcement didn’t happen in anything like a reasonable timescale.

I phoned ISDX on Friday to ask them why this had taken so long, and they took my number and said they’d phone back. Needless to say, they haven’t. I didn’t expect them too. The two people I spoke to on Friday seemed to know as much about shares as my cat, and to have marginally less interest in them. The fact is Stan Kroenke has blatantly broken their rules, but they don’t seem interested in enforcing them.

With the aid of my legal team, I’ve now located the ISDX stockmarket rules that Arsenal and their Directors are supposed to follow.

You can read them all here if you’re so inclined.

http://www.isdx.com/regulation/primarymktrules.aspx

In particular this lot:

http://www.isdx.com/files/pdf/ISDX-Growth-Market-Rules-for-Issuers-2013-07.p
df

of which my legal department tell me rules 43 and 72 are the most pertinent.

Here’s rule 43:

ISDX rule 43And here’s 72:

ISDX rule 72You could argue that as it’s only two shares involved, it’s not a serious matter. I’d argue that the owner of Arsenal should really be following rules a little more closely, as a professional person should, not to mention the spirit of openness and honesty that we expect. If you don’t follow rules it tends to look as though you are either incompetent or underhand, neither of which is a positive trait for Arsenal owner in my book.

Of course the big question is still Why has Stan Kroenke decided to buy two shares now, fully two years after his last purchase? What good is an extra two shares going to do him? I didn’t know on Friday and I’m none the wiser now. However, I will be watching any Arsenal share movements doubly closely from now on.

Twitter: @AngryOfN5

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14 thoughts on “Rules (of Football Club Ownership) & How to Break Them, by S Kroenke

  1. I would assume this was simply to stop Mr Usmanov from purchasing them and then being entitled to a seat on the Board

  2. Thank God you are on the case, imagine if it had been 4 shares!!!!!
    I really doubt that this is a big issue and I am sure Kroenke has his own legal and corporate advisors to ensure his trades will respect, if not the letter, then the spirit of the law.

  3. Maybe I’m missing something but what is this blog post about? KSE bought two shares and as Kroenke is a director KSE would be a ‘connected person’ and so must announce his interest as soon as possible. But what says that as soon as possible is the same as the next day? If it is why doesn’t the rule just say ‘next day’. The fact that it is non specific clearly accepts that it can take longer and presumably if they do not feel the need to pursue it then they accept that one month can be as soon as possible. In any event what does it matter? Who risks being harmed or disadvantaged in anyway? Much ado about nothing very much it seems to me.

    • I would say it matterscos this guy has bought our club, has shown no ambition to push the club forward and now is buying more shares whuch he doesnt need unless he’s looking to cash out even bigger than he currently can, but he also seems (note I say seems) to be trying to buy them on the quiet. Now as he owns controlling stock why should he feel the need to buy on the quiet.??????

      • How exactly does it matter whether he has 2 more or 2 fewer shares – other than to Kroenke? What do you mean by buying on the quiet? It can only not be on the quiet if it is a public sale but as all the shares are held by private individuals or private corporations it isn’t really possible for the sale to be anything other than private and therefore quiet.

      • At what point is Kronke obliged to make a formal offer for all shares. This would be based on the price of shares recently traded. Therefore what he payed and when, could be very relevant.

        Sent from my iPad

      • Kroenke passed that point when he took control of the club once he acquired more than 30% of the shares. There is now no obligation for him to make an offer to buy the shares he doesn’t currently hold. He can simply buy what he wants if he wants as and when they become available to him

  4. The longer stan hangs around the more I fear him. I simply cannot figure out why he wants to own our club other than he’s gonna make a shed load of money out of it. Now I wouldnt mind that in principle if the club was going to be sucessful and secure as he made hid money. The problem is we are not sucessful and I fear not secure at least not financially either. In fact I would argue that we have become notably weaker since his arrival. Its gotten to the stage now over the last 2 or 3 years not only have we not won a trophy but we seem to have become a much less attractive potential club for even moderately skilled players, we simply just dont seem to be able to attract players to join our club.

  5. Whatever the reasons for Kroenke’s interest in Arsenal he certainly won’t disclose them to us. We’re mere supporters. My outstanding worry now is what AW is going to do with the transfer loot. Perez was denied a work permit and has gone back to Colombia, the Suarez saga has become a joke ( with LFC at the but of it ) while rumour has it that we have come up short with the Gustavo transfer money. With respect to you all, to hell with Kroenke for now. we have bigger fish to fry starting with Villa on Saturday. How we start may dictate how we intend to go on.

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