Kroenke Buys More Arsenal Shares

Kroenke Sports Entertainment, formerly Kroenke Sports Enterprises, aka KSE, has bought 43 more shares in Arsenal, taking the Kroenke total to 41,639 out of the 62,219 there are altogether.

The shares were bought on October 2nd – a block of 36 publicly traded on ISDX and another seven that only showed up on the ISDX site on October 6th. KSE share purchase 3Oct14

The announcement was only made on October 3rd though, after Arsenal had done their regular weekly update on the website (apparently) confirming that neither KSE nor Red & White had bought any shares this week. So it seems Stan didn’t bother to tell anyone at Arsenal the transaction had gone through until today. But I’m sure he and young Josh are both working very closely with the rest of the Arsenal Board at all times . . .Arsenal shares page as at 3Oct14

Here’s a quick Q&A:

Does this purchase change the dynamic with Usmanov?

No. Usmanov (R&W) has just over 30%. Unless he wants to sell then there’s no difference in his relationship with Kroenke. Usmanov can still block certain changes to the club constitution for example, as he has over 25%. If Usmanov ever decides to sell to Kroenke, or vice versa, then whoever buys has all the power, not just most of it as Kroenke has now.

What does Kroenke want more shares for?

The obvious answer is to get rid of more small shareholders, who are an irritant to him. They have to be invited to AGMs. Usmanov was hoovering up all the small shareholders for him in order to get to 30%, but since he’s stopped maybe Stan will start again. There’s no financial benefit for Kroenke though. It won’t make the share price higher or Arsenal worth more, or give him any more rights than he’s got now.

Who did Kroenke buy these 43 shares from?

I don’t know, but there are only about 4 people other than KSE, R&W and Fanshare who currently have (or had) more than 40 shares, so the options are limited. Two are brothers who have 80 each, one is a little old lady with 115. Another individual has (or possibly had) 40.

I’m bored with shares, what does all this matter to the team?

The best ownership model for football clubs – that’s clubs – is to have fans involved. If you don’t believe that then kindly remove yourself from here and do not bother returning. I’ve written several times on why this ownership model is best.,so I won’t go into it all again, but surely you can at least see that money raised from supporters should not be siphoned off by an owner who has not invested a penny into the club itself, all he has done is buy shares from other people? He has now started taking money out. He is reducing the number of small shareholders, thereby reducing the accountability. If you don’t think this kind of thing is important then I envy you and your simple life. Enjoy it. It must be great not to realise that you don’t understand things.

If you (not the people bored with shares, the other people) have any more questions let me know in the comments or on Twitter: @AngryOfN5

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10 thoughts on “Kroenke Buys More Arsenal Shares

  1. What does this matter?

    Accountability and fan involvement in the club was gone when Dein. Fisman and co all cashed out – without so much as even a cursory nod to the fans who make the club.

    From that point on, the rest is pure theatre.

    Enjoy what’s left while you can and dont worry about the rest. The die is cast and the path is set. It wont be long before this game looks about as authentic and appealing as “Pro Wrestling”. At that point you’ll look back and realise that 2014 was not bad because at least the beast called greed had not been completely unleashed – yet.

  2. Good post. I fear the worst with Kronke. He has a ‘Glazier mindset’ and sees Arsenal as a ‘cash cow’, to be milked when ever the mood takes him.

  3. Hey does anyone know where I can buy 1 arsenal share ?? I’m being serious this isn’t a joke, I would like to purchase 1 share just to be an annoyance to Stan. Please let me know

  4. Interesting. Do we know what price he paid for the shares?

    That is important as that price determines the level at which he can make a full bid in the future…as laid out by stock exchange rules.

    >

    • It says in the first statement how much he paid. This won’t affect the price he pays for any future shares. Take a look through Phil’s previous articles to see why,

  5. @Phil I had a question to ask you regarding this. Isn’t there something in the rules that states that anyone who has more than 97% of the shares gets some special powers compared to someone below 97%? In the context of takeover rules, I guess it was that the person with more than 97% can compulsarily buy the rest of the shares or something of that sort. But there were something else with regards to more powers regarding disclosing finances or management control that a person with more than 97% has.

    Why I think it’s relevant here is that with 66.92% of the shares now, if Kroenke buys out Usmanov’s 30.04%, he will be near the magic 97% figure. I’m just speculating that the magic 97% is his target by all these moves.

  6. There’s no real significance in this other than that the shares were made available to Kroenke rather than Usmanov. To get rid of small shareholders, if that’s his aim, then he needs a 90% shareholding which isn’t possible picking up a few shares here and there. He’d need to buy out Usmanov. Speculating (or is it just fantasising?) on what he might do if Usmanov ever sold to him (or vice versa) seems pretty pointless given that there seems little genuine prospect of that happening in the foreseeable future. The small shareholders are of no significance, only Usmanov has a brake and he’ll only use it in his own interests. Ultimately the fans as shareholders don’t have any more power than any other fan. The power fans have is contained completely in their purchasing power. If they choose not to exercise, it free of any concerns about the value of their shareholding, then it’s the shareholders who will feel the impact. There’s a much greater purity of purpose in simply being a supporter than a shareholder.

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