Arsenal owner Stan Kroenke angers fans by taking £3m out of club

[Power n Glory]

Arsenal owner Stan Kroenke angers fans by taking £3m out of clubPayment matches 3% rise in season ticket prices
• Kroenke has dodged issue of receiving dividends

News of the £3m payment for Stan Kroenke came as Arsenal tickets were capped at £10 against Southampton. Photograph: Michael Zemanek/BPI/Rex
Arsenal’s majority shareholder, Stan Kroenke, has taken a payment of £3m out of the club according to the latest company accounts.
Having never taken dividends from his American sports franchises, which include NBA basketball’s Denver Nuggets and the NFL side St Louis Rams, this is a move that has gone down badly with Arsenal supporters. Coincidentally, the £3m figure tallies with the amount the club raised from a 3% rise on season-ticket prices for this season.
The money has been paid to Kroenke’s company, KSE LLC, for strategic and advisory services which relate to Arsenal’s broadband division, the media department which raises funds by selling a three-hour block of weekly content to the lucrative international market.

Kroenke has been asked repeatedly at the club’s annual meeting whether he would take dividends from Arsenal but has always dodged the issue. He has, though, outlined his admiration for the model the Glazer family have at Manchester United, which was a leveraged buyout that loaded debt on to the club.
In a rare interview in November 2011, Kroenke expanded on how he feels this American system works. “Since they took over they have won and they have increased revenues by a huge amount. If I was a fan of that club, I would go there and go ‘Wow!’ because how could you do it any better?
“We have a whole different philosophy I think in the States, maybe, but I think it’s time for everybody to think a little bit. I think they ought to think about who invests in these clubs. ‘He [Glazer] took money out of the club. So what? [LA Lakers owner] Jerry Buss takes money out of his club. A lot of owners in the US do. No one ever says anything about it.”
News of the £3m payment felt all the more of a touchy subject on a night when Arsenal tickets were capped at £10 for the Capital One Cup tie against Southampton, a gesture of goodwill at a club with notoriously expensive tickets in the Premier League.

No doubt the Kroenke payment will be a subject on the agenda at Arsenal’s AGM on 16 October.

http://www.theguardian.com/football/2014/sep/23/stan-kroenke-arsenal-dividend-fans-anger

[Niall_Quinn]

Uh oh...

As usual, the timing with these rich guys - unbelievable.

[I am invisible]

Maybe he's being drafted in as a an emergency CB? £60k/week would be about standard for us...

[She Wore A Yellow Ribbon]

Go into a 50 game season with 6 defenders and Stan takes £3m for himself.

You couldn't make this up!

[Penguin]

He's probably brought double that in revenue to the club. :shrug:

[Power n Glory]

He's probably brought double that in revenue to the club. :shrug:

True. But why the 3% rise in season ticket prices? It sounds like he's taken the fans money instead of the sponsors. The price hikes have been justified by Wenger by saying we need it to compete with the bigger clubs. Sounds like bullshit to me.

[Fist of Lehmann]

Attempting to make sense of this as a layman.

The article goes on about dividends, but this is a payment for 'strategic and advisory services'. £3m seems like a fuckton of money for consultancy fees but it might be legit. Maybe he's taking a %age cut of the overseas broadband coverage cash, which is 'lucrative' apparently (couldn't find separate internet broadcasting revenues). How he might have earned this cut, who knows?

Or it could be a way of taking dividends without declaring it as such so that Usmanov and the small shareholders don't take a cut, and the supporters groups don't kick up so much of a fuss.

Either way, it's a disgustingly rich man getting disgustingly richer by pissing on everybody and telling them it's rain. Just business in other words.

[Niall_Quinn]

For me the intent is more important than the amount. Not that it was ever likely to be otherwise, but now we know why he's attached to Arsenal. Precedent set, main event to come.

[Kano]

The first set of shares he purchased from ITV included a 50% share of Arsenal Broadband.

Given the respect he seems to give other owners who take money out of the club I think we should expect more to be going out in the future too.

Man U could do it because they have a shitload coming in through success on the pitch and selling every conceivable piece of advertising space across a huge spread of sponsors. Their commercial team is far more aggressive than ours, so we either up our game, sell out more of soul and identity, or prepare for a return to sparser pots of money to spend.

[Globalgunner]

We are a cash cow. Right now he`s only tickling our udders while the milking machine is being warmed up. Wenger is the resident production technician

[Ollie the Optimist]

owner taking money out of a business isn't that shocking really. it happens everywhere, however what is shocking is the way it seems to be done. If he just took a 3 million pound dividend, most probably would be that angry, its the fact that the 3% rise in prices will roughly be 3 million pounds extra and thats what he has been paid.

however his taking money out of the club is nothing compared to what podolski does. fucking hell, he makes kronke look like a saint in taking 3 million out of the club. 100k a week and he does fuck all

[Bumble]

I believe this was for consultancy services... but wow that's a lot. Although what difference is £3m going to make to a billionaire, like someone giving us a tenner. it is nice but not exactly going to change our lives.

but considering how much it has cost Kroenke to buy arsenal, you do wonder why as the only way he is going to get his money back is if he sells the club on... although perhaps that is the plan as after spending over £400m on buying arsenal. you don't get that money back with a football club. Football clubs aren't there to make a profit, they should be there to break even.

[She Wore A Yellow Ribbon]

owner taking money out of a business isn't that shocking really. it happens everywhere, however what is shocking is the way it seems to be done. If he just took a 3 million pound dividend, most probably would be that angry, its the fact that the 3% rise in prices will roughly be 3 million pounds extra and thats what he has been paid.

however his taking money out of the club is nothing compared to what podolski does. fucking hell, he makes kronke look like a saint in taking 3 million out of the club. 100k a week and he does fuck all

Angry Ollie :bow:

[AFC Leveller]

Owners taking money out of their club is nothing new but THIS owner has not put a single penny of his dosh innto the club.

[PGFC]

Owners taking money out of their club is nothing new but THIS owner has not put a single penny of his dosh innto the club.

How did you work that one out?

[AFC Leveller]

We are a self sustaining club and our transfer and wage money come from sponsors, TV rights and gate revenues. Has Kroenke invested any money (other than buying shares) direclty into transfers or wages? dont think so.

[Injury Time]

How did you work that one out?

He's bought shares, not added to the operating cash, think that's what he's referring too :unsure:

[PGFC]

We are a self sustaining club and our transfer and wage money come from sponsors, TV rights and gate revenues. Has Kroenke invested any money (other than buying shares) direclty into transfers or wages? dont think so.

Ah, I get you, you want him to pay the ball-boys out of his own pocket too :good:

[AFC Leveller]

Ah, I get you, you want him to pay the ball-boys out of his own pocket too :good:

Why not!

[Niall_Quinn]

I suppose this £3mill might also be connected in some way to FFP. There are a lot of weird and wonderful payments and counter-payments going on now that books have to be cooked balanced in light of the new regulations. £3mill is an odd amount for a guy who probably has that much lost down his sofa.

[The Emirates Gallactico]

FFS, Kroenke out, Usmanov in.

Hope he gets forced and pressured to justify what exactly this £3 million is for. In precise detail, the services he provided so that it can compared to current market rates to check whether it's a fair rate.

It may turn out to be fully legitimate expense but it's always a dangerous path to go down, to use one of your other business interests to provide a "service" to another one - it's rife for exploitation and fraud. The Glazer's have been doing it for years at Man Utd with various, "management fees" billed to the club which are just a way to draw out money for their own private accounts.

Thankfully given the demographics of our club and the location, we do have the personnel among the fanbase to really delve into this issue and to bring the appropriate pressure to the boardroom if need be.

[The Emirates Gallactico]

I suppose this £3mill might also be connected in some way to FFP. There are a lot of weird and wonderful payments and counter-payments going on now that books have to be cooked balanced in light of the new regulations. £3mill is an odd amount for a guy who probably has that much lost down his sofa.

Can't see how that's possible. The trick with FFP is to add spurious in-comings to your accounts to boost them artificially; see the Gypos with their ridiculous stadium naming rights and PSG with their inflated sponsorship deals (thankfully UEFA called them out on it).

Adding more expenses to your accounts and thereby reducing profits gives you less money to spend.

[Bumble]

Can't see how that's possible. The trick with FFP is to add spurious in-comings to your accounts to boost them artificially; see the Gypos with their ridiculous stadium naming rights and PSG with their inflated sponsorship deals (thankfully UEFA called them out on it).

Adding more expenses to your accounts and thereby reducing profits gives you less money to spend.

UEFA called them out on it but only to give them a £50m net spending limit....oooo when most of there team has been done and a suspended fine and smaller CL squads which isn't really much deterant.

although mourinho moaning about it is a bit rich.... he wouldn't even be at Chelsea if they were supported totally by a billionaire... stupid prick.

[Fist of Lehmann]

£3mill is an odd amount for a guy who probably has that much lost down his sofa.

Rich men don't get that way by refusing any opportunity to steal your money.

They don't care whether it's death by a thousand cuts or chopping your balls clean off.

[Dein-machine]

£3mill is an odd amount for a guy who probably has that much lost down his sofa.

Its £5 mill less than Wenger takes out & in relation to what their doing to this club - its a bargain.

[The Emirates Gallactico]

Its £5 mill less than Wenger takes out & in relation to what their doing to this club - its a bargain.

They're completely different situations.

Wenger's actually providing a tangible service (management) and is rightfully getting a salary for it (whether or not it's too high is another debate).

Kroenke sits on his arse all day and doesn't provide anything to the club yet feels content with withdrawing 3 million out of the club for "consulting services". Until this gets cleared up (probably at the AGM) it looks dodgy as hell and just a mask to siphon money out. Kroenke shouldn't be withdrawing money out to get back his return - moreover the increase in value of his shares since purchase (probably already pocketed 200 + million) should account for that.

Now there's no questioning the legality of it, as principal shareholder and a board member he has the influence and power to direct the club to do what he wants, however it isn't a moral or sensible thing to do in the face of an increase in ticket prices and general unhappiness with the squad at the moment.

[Dein-machine]

They're completely different situations.

Wenger's actually providing a tangible service (management) and is rightfully getting a salary for it (whether or not it's too high is another debate).

Kroenke sits on his arse all day and doesn't provide anything to the club yet feels content with withdrawing 3 million out of the club for "consulting services". Until this gets cleared up (probably at the AGM) it looks dodgy as hell and just a mask to siphon money out. Kroenke shouldn't be withdrawing money out to get back his return - moreover the increase in value of his shares since purchase (probably already pocketed 200 + million) should account for that.

Now there's no questioning the legality of it, as principal shareholder and a board member he has the influence and power to direct the club to do what he wants, however it isn't a moral or sensible thing to do in the face of an increase in ticket prices and general unhappiness with the squad at the moment.

I know - it was a bit of a tongue in cheek moment!
However, I would say that it could be argued that Wenger's tangible service to the club over the past few years had been more in line with "mis-management", but hey - I suppose he needs paying.

[mr_brighterside]

£3m? hardly on a scale of the glazers or the phones 4 u owners!

[1_nilto the arsenal]

Looks like Stan has got a Goomar tucked away in a posh apartment in Mayfair!