Arsenal's majority owner Stan Kroenke is committed to the 13-time English champion for the long term and would not consider a sale, the Premier League soccer club said in a statement today.
A Gulf-based group is planning a record £1.5 billion bid for the Gunners, according to reports in the Sunday Telegraph and the Sun.
The unidentified group comprises investors from Qatar and the United Arab Emirates and is poised to begin negotiations, the newspaper reported, citing an unidentified source. It would be the biggest takeover of a sports team, and double the £790 million the US-based Glazer family paid for Manchester United in 2005.
In a statement, an Arsenal spokesman said the club had not had any contact from any consortium and that Mr Kroenke is committed to AFC for the long term and has no intention of selling.
Arsenal’s board and team manager Arsene Wenger have come under pressure from supporters following the sale of last season’s top scorer Robin van Persie to Manchester United and poor performances this season. Van Persie refused to sign a new contract, saying he did not agree with the Arsenal board’s strategy.
Some fans have accused the club of not spending enough on top talent to compete with rivals such as Premier League leader United and Manchester City and Chelsea, teams all backed by billionaire owners. Arsenal has also faced protests for charging the highest priced tickets in the league without restoring success. The newspaper reports said the Middle East investment group would cut ticket prices.
Mr Kroenke, an American sports mogul who also owns the National Football League’s St Louis Rams and the Denver Nuggets basketball franchise, took control of Arsenal in 2011 after acquiring stakes owned by two former board members. Those purchases valued the club at £731m, less than half the amount the Gulf-based group would reportedly offer.
The Middle East group plans to make a cash offer that is worth more than twice what the club was valued at two years ago, according to the reports. The offer would be for all of the 62,217 issued shares would include about £830m for Kroenke, the Telegraph said.
Mr Kroenke had been vying for control with metals billionaire Alisher Usmanov, who retains a 29.96 per cent stake. Mr Usmanov has been critical of the way the club is run. The Russian in July wrote an open letter criticising the club for failing to keep van Persie and lack of investment.
* Bloomberg News
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
