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Anorak | Arsenal want to be like Chelsea but with the history and without the debt

Arsenal want to be like Chelsea but with the history and without the debt

by | 20th, May 2017

On the BBC website, you can read Gunners’ “legend”, BBC pundit and financial wizard Ian Wright’s views that Arsenal “need a billionaire like Alisher Usmanov to move forward”. What business doesn’t need a billionaire investor to progress? Such people are undoubtedly handy.

Usmanov, described by the BBC as “Metal magnate Alisher Usmanov” – the metal perhaps being Teflon-coated gold –  owns 30% of Arsenal shares. Wright has heard that Usmanov wants to buy-out Arsenal’s majority shareholder Stan Kroenke – a man nicknamed ‘Silent Stan’ presumably on account of him boasting a profile lower than a steamrolled spoon and not because his favourite chant is “Can you hear the Arsenal sing? No-oo. No-oo.”

Wright tells BBC Radio 5 live: “Something has to change, whether it is the manager Arsene Wenger or whether it is the board upstairs… They may be out of the Champions League – something they are not used to – and they have to beat one of the best Chelsea sides I have seen for a long time in the FA Cup final to try and get something from the season.”

Don’t fans accept that their team’s fortunes fluctuate?

“Abramovich is a winner,” adds Wright of the Chelsea owner who bought the Blues in 2003. “Stan Kroenke sees it as another asset. If you look at all his other franchises, they are doing the same. They are mediocre, with poor attendances and aren’t achieving anything as a team. That is where Arsenal are at the moment. We need an owner like Abramovich, who wants to win. I would swap Arsenal’s last 10 years for what Chelsea have done.”

It might be worth looking at what people said when Abramovich arrived at Chelsea. As of May 2014, Abramovich’s interest-free loan to Chelsea stood at £1,041,243,000. These quotes are from 2003:

Chelsea fan to the BBC: “I think it’s disgraceful because I always thought that Ken Bates was Mr Chelsea.”

Former sports minister Tony Banks: “I want to know whether this individual is a fit and proper person to be taking over a club like Chelsea. Until that question is answered, then I’m afraid the jury is out. A sale has been arranged to an individual we know nothing about.”

David Pottinger on BBC Radio 606: “I fear for the future of Chelsea, especially with all the debts.”

Ramon Min on Voetel Int:

This is good news for Chelsea, but I don’t know about the rest of Europe. Dutch clubs are used to letting their players move on to ‘bigger’ clubs when they are ready, but if more teams like Chelsea are going to have the same financial clout as, for example, Real Madrid and Manchester United, then players will go abroad at an earlier age. That’s obviously not good for Dutch football or its fans as the standard of our own league will drop. And while money is often good news, it can also create a lot of problems. You have to be very careful when you have so much. Chelsea could go for someone like the Ajax player Rafael van der Vaart, who is young and exciting, but then the fans are going to demand success when so much has been spent. My guess is that they will go for experienced players who will win things quickly.

The Guardian: “Roman Abramovich’s buyout of Chelsea almost certainly rescued the club from having to default on a £75m loan that would have plunged it into financial crisis.”

And Arsenal today – are they like Chelsea before Abramovich arrived?

Newsweek (April 2017):

Arsenal’s cash reserves are pretty high and of course Arsene Wenger has got this reputation of being quite frugal when it comes to player investment. What people forget is of all the costs associated with running a football club like Arsenal. They have to budget for around £30 million worth of debt servicing. That comes out of those cash balances. So when people talk about a £100 million war chest, you’re immediately saying well that’s £100 million minus £30 [million]. But that doesn’t get reported enough, basically. [In Arsenal’s Annual Report from 2015-16, Keswick noted cash reserves of £226.5 million, reduced to £149 million. Arsenal’s debt service reserve balance, the cash it stores to ensure it will not default on interest payments of around £15 million per season for Emirates Stadium until 2031, stood at £35.4 million].

Arsenal have still got £232.6 million worth of debt on their balance sheet [according to 2015-16 accounts].

The numbers are huge in football’s arms race.



Posted: 20th, May 2017 | In: Back pages, Chelsea, Sports Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink