ESPN article foresees tough times for Arsenal

[KingsX]

Even in this megabucks football era, the character and intention of club owners are still as important as the money they bring.  Points from a new article about Stan Kroenke’s takeover of Arsenal:

•         Kroenke’s KSE sports empire is entirely debt-financed.  The only assets are those of the clubs.
•         Some shareholders (notably the Arsenal Supporters Trust) don’t want to sell, but will be compelled to, at a below-market price.  Kroenke will have absolute control.
•         Arsenal had begun to outspend profits even before missing out on Champions League football last year.  The wage bill has ballooned past 60 percent of turnover.  They are trying to unload high-earning players, even at significant loss.
•         Bottom line: AFC will need CL payouts and near-zero interest rates to keep spending.  If they don’t get both, assets may have to be sold to cover Kroenke’s debt.

Their conclusion:

It could mean an extended period of financial frugality, while others in England who are unconstrained by the limits of a self-sustaining model, such as Everton, Wolves or Leicester, perhaps, burst past them.

Kroenke is a self-declared "investor," for whom football is a financial, not emotional activity. Most investors have an eye for a return, a yield in the form of dividends, and Kroenke is no different. A full takeover means there are no other shareholders to vote against that happening.

Kroenke has demonstrated from his debt-geared share purchases that he has no taste for spending his own money. His acquisition of Arsenal has been conducted through loans raised in a zero-interest-rate world. That paradigm is now changing, though, with interest rates rising.

Kroenke out?  He’s only just getting all the way in. #thearse

http://www.espn.com/soccer/club/arsenal/359/blog/post/3599768/arsenal-spending-beyond-their-means-will-stan-kroenkes-takeover-help-or-hinder

 

 

 

 

[ozleicester]

After watching Manu last night, and thinking about Arsenal this year... i can see them both missing the top 6 

[st albans fox]

Not really an LCFC topic Oz but I’m intrigued by what kroenke does with all the shares ....... I’m still smelling a sale or part sale to a us conglomerate or media giant. 

[Duncan_K]

9 minutes ago, ozleicester said:

After watching Manu last night, and thinking about Arsenal this year... i can see them both missing the top 6 

Unlikely as that may be it would be brilliant for English football and the premier league. 

[Wolfox]

Arenene out…. Arsene went

mmmmhhh…. Who next???

[La-li-lu-le-lo]

53 minutes ago, ozleicester said:

After watching Manu last night, and thinking about Arsenal this year... i can see them both missing the top 6 

I think this too, they both look so far off the pace it’s unreal, Chelsea aren’t much better either... the race for the champions league will be very interesting. A couple of teams have a golden opportunity to sneak in I think.

[Shane]

Top 6 is up for grabs imo, Arsenal look very poor

[coolhandfox]

They have played Man City and Chelsea, let she how they get on against the rest before writing them off.

[kingcarr21]

Arsenal could easily have scored 5 in the first half against Chelsea. They will be fine. Once they get their first win under their belts they will get a run together.

Only thing I would be worried about is that ridiculous high line. Vardy will have a field day if they continue with it.

[StriderHiryu]

1 hour ago, Shane said:

Top 6 is up for grabs imo, Arsenal look very poor

I agree. I think the most surprising thing is I look at their team and think who of their team would I have in ours? And honestly only Aubemayang and Mhiki would IMO. They’ve signed so many crocks of shit over the last 5 years it’s unreal. 

But to get top 6 you need consistency and I’m not sure we’re at that level just yet. 

[Shane]

1 minute ago, StriderHiryu said:

I agree. I think the most surprising thing is I look at their team and think who of their team would I have in ours? And honestly only Aubemayang and Mhiki would IMO. They’ve signed so many crocks of shit over the last 5 years it’s unreal. 

But to get top 6 you need consistency and I’m not sure we’re at that level just yet. 

Schmeichel

Pereira, Maguire, Evans, Lichtsteiner

Ramsey, Ndidi

Mhiki, Maddison, Ozil

Vardy

Vardy or Auba is debatable. To me Auba looks like a poacher whereas Vardy has more to his game but that’s just my opinion. Soyuncu would probs replace Evans, but haven’t seen enough of him to judge.

[BenTheFox]

I think if there's any team that will break the top six this season it will be Everton. 

[Detroit Blues]

Kroenke belongs in the Absolute cvnts of our time Pt.MXXVI post on FT.

 

 

[urban.spaceman]

We have a moral duty to finish above them this year. They've been on the decline for years and we should be taking their place. If Kroenke could just ruin them for a decade or two that would be wonderful.

[Corky]

I don't think we are unconstrained in our spending now. I don't want to go all net spend about it but we brought in around £80 million this summer and we've made profits each season since promotion haven't we?

Arsenal should still beat us to most signings if we're competing.