Usmanov and Everton

by **Hobart** » Thu May 17, 2018 3:05 pm

Seems that the Dutch press are suggesting that Usmanov is going to sell up his Arsenal shares and join Moshiri at Everton.

Its come out on the back of Everton appointing Marcel Brands as Director of Football today.

All I can say is that I quite like Usmanov holdig the 30% at Arsenal as it keeps the finances public. I also worry what will happen if Usmanovs wallet appears at another club as it will push us further down the pecking order.

by **potter** » Thu May 17, 2018 3:41 pm

This has been on the cards for some time. As long as Kroenke ignores him the more likely it is. If the whole lot were to fall into one ownership it would be a sad day for the club. Apparently there is an African magnate that has tried to buy in perhaps he will buy them and keep Kroenke out.

by **Rainham Red** » Thu May 17, 2018 4:42 pm

potter wrote:This has been on the cards for some time. As long as Kroenke ignores him the more likely it is. If the whole lot were to fall into one ownership it would be a sad day for the club. Apparently there is an African magnate that has tried to buy in perhaps he will buy them and keep Kroenke out.

Usmanov has just over 30% while the Kronk has 67%. Even if the African bought Usmanov`s shares he wouldn`t even get a seat on the Board.

by **potter** » Thu May 17, 2018 7:40 pm

But he would stop Kroenke having total control and removing us from the markets where he is obliged to publicise accounts and the like.

by **Rainham Red** » Fri May 18, 2018 8:48 am

potter wrote:But he would stop Kroenke having total control and removing us from the markets where he is obliged to publicise accounts and the like.

Kronk has total control that is the reason Usmanov may move to Everton. I do not quite understand about "removing us from markets where he is obliged to publicise accounts" ?

by **Hobart** » Fri May 18, 2018 10:07 am

If Kroenke buys Usmanovs stake he could compulsory purchase all other shares as well. Once he has them all he can de list the club from the stock market. Once we are off the market the level of detail required when publishing accounts and suchlike decreases massively.

For example we wouldn’t see any payments he could make to himself or other companies. He could take loans out on the club and we’d never know, etc etc. In effect one sole owner is not good for public oversight.

by **Rainham Red** » Fri May 18, 2018 11:01 am

Hobart wrote:If Kroenke buys Usmanovs stake he could compulsory purchase all other shares as well. Once he has them all he can de list the club from the stock market. Once we are off the market the level of detail required when publishing accounts and suchlike decreases massively.

For example we wouldn’t see any payments he could make to himself or other companies. He could take loans out on the club and we’d never know, etc etc. In effect one sole owner is not good for public oversight.

Thanks for the clarification Hobart. I thought potter was referring to the African chap buying the shares. I agree it would be a disaster if 100% of the shares were held by Kronk.

by **potter** » Tue Aug 07, 2018 11:21 am

I agree it would be a disaster if 100% of the shares were held by Kronk.

And so it comes to pass. Now we know why the rumours of Gazidis' exit have been rife . 100% Stan and Josh as CEO , the rest of the nodding dogs put out to pasture all we need now is Trump to do our negotiations.
I suppose the Arsenal I grew up with along with most of the few posters here went when we changed stadiums . We are now just another all American club with no say in affairs , no AGMs and only told what they want us to know.
Mushrooms come to mind.

by **Rainham Red** » Tue Aug 07, 2018 11:56 am

Bit of a worry to say the least.

by **Hobart** » Tue Aug 07, 2018 6:46 pm

What worries me is that reports are that Kroenke is buying out Usmanov with a bank loan. Once he has delisted us there will be nothing to stop him dumping that debt, or the repayments onto the club.

There goes £20-£30million of transfer budget a season.

Of course I could be wrong.......

by **Rainham Red** » Wed Aug 08, 2018 10:02 am

Hobart wrote:What worries me is that reports are that Kroenke is buying out Usmanov with a bank loan. Once he has delisted us there will be nothing to stop him dumping that debt, or the repayments onto the club.

There goes £20-£30million of transfer budget a season.

Of course I could be wrong.......

You can relax Hobart it`s been confirmed that the loan has not been dumped on the Club

by **Red Snapper** » Wed Aug 08, 2018 2:38 pm

Rainham Red wrote:
Hobart wrote:What worries me is that reports are that Kroenke is buying out Usmanov with a bank loan. Once he has delisted us there will be nothing to stop him dumping that debt, or the repayments onto the club.

There goes £20-£30million of transfer budget a season.

Of course I could be wrong.......

You can relax Hobart it`s been confirmed that the loan has not been dumped on the Club

Yet.........

by **potter** » Wed Aug 08, 2018 9:20 pm

What about the interest payments though... He can set a dividend to cover them and nobody would know. it's a can of unsavoury worms

by **Rainham Red** » Thu Aug 09, 2018 10:05 am

I have just read that the probable reason debt wasn`t dumped on the club by Kroenke was because of the way the Glazers hit United with debt when they took them over. The late Danny Fiszman and former Managing Director Keith Edelman didn`t want this to happen to Arsenal so they put covenants in place to prevent it happening.

by **potter** » Thu Aug 09, 2018 6:07 pm

Very wise if they did ,but if he decides to overide it , who will stop him. Certainly noit the board members who may or may not be around should it happen.

by **Hobart** » Thu Aug 09, 2018 7:43 pm

Rainham Red wrote:I have just read that the probable reason debt wasn`t dumped on the club by Kroenke was because of the way the Glazers hit United with debt when they took them over. The late Danny Fiszman and former Managing Director Keith Edelman didn`t want this to happen to Arsenal so they put covenants in place to prevent it happening.

Unfortunately those covenants aren’t cast in stone. I believe that public desires and statements like that are enforceable for 6 months under stock market rules.

Of course if he delists us all bets are off. He could drop the debt on us if he wants, he could take a dividend equivalent to the loan repayments every year. He could do all sorts.

He might even leave us ticking over and bring self sufficient.

Either way it’ll be difficult as Delaware (where most of his companies are based) have legendary lax rules regarding company accounts and the details inside.

by **Hobart** » Thu Aug 09, 2018 7:50 pm

For example, if we take this excerpt from Kroenkes statement.

Mr Kroenke has used £45,398,000 cash from his own resources. In addition, Mr Kroenke entered into a bridge facility agreement with Deutsche Bank AG, New York Branch as lender on 2 August 2018, under which Deutsche Bank AG, New York Branch has agreed to make available to Mr Kroenke a £557 million bridge term loan facility.

The Offer is not being funded by way of any debt finance (bank loans, payment in kind loans or other debt or quasi‑debt interest bearing obligations) for which the payment of interest on, repayment of, or security for any liability (contingent or otherwise) will depend on the business of Arsenal.

This can be translated as

The £557 million needs to be paid off in two years so the money has to come from somewhere.....

And

Payment of the finance of this offer will not depend on the business of Arsenal for the next 6 months or until the club is delisted.