Previous names: Dial Square, Royal Arsenal, Woolwich Arsenal
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Wednesday, February 06, 2019

When will Kroenke sell?

By 1970's Gooner

Arsenal's self sustaining financial model requires that a large proportion of any surpluses created can be reinvested back into the club. It therefore minimises the chances of injection of capital by the owner unless of course he opts to do so. Which of course does not look likely.

This would have been less of a worry in past times, when the large benefactors, pumping enormous financial resources into a team irrespective of its financial status, did not exist. It was then a much more level playing field.

It isn't now and therefore under the current owner our expectations for winning titles must be tethered somewhat otherwise our stress and anxiety levels will reach breaking points.

However if Kroenke decides to sell then I believe Arsenal will be ready to attract a major benefactor who will make available the significant resources to allow us to compete on an equal footing.

And I say this by looking at the financial position Arsenal is at right now. Kroenke is an investor and not a benefactor. He is not likely to keep his shares in Arsenal for longer than necessary. When no more significant financial growth can be squeezed out of Arsenal he will sell and move on.

And this moment will arrive sooner than we think because if you analyse Arsenal's accounts any profits that have been made in the last few years have come mainly from selling of players and not so much from internal recurring operational generation of funds (gate receipts, commercial revenues, TV money).

In fact the major substantial increase in the value of Arsenal and its shares has come from the creation of the Emirates and the subsequent paying off of the related debt.

So how much more can Kroenke make out of Arsenal? Not a lot more I say.










4 comments:

dharmaboy said...
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dharmaboy said...
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Unknown said...

we kindly request kareonke to sell the club to some one who can manage it. otherwise we are likely to stop buying tickets and leave supporting the club. it is hurting, we are filling heart pain that he doesn't know. we beg him since he is the lord to sell it off. may almighty God listen to our prayer and we get ride of him.

Unknown said...

i only submit my prayer to God because mr kareonke has proved that he is a self styled man that no one can manage him, only God that can change him and remove out from his hands. the other thing i request fellow supporters to stop buying arsenal tickets and stop watching the games till this man leaves the club. it is my request kindly to all arsenal fans in this world. please funs support me and we move together. otherwise it is unbecoming to our lives.look here we have good strikers but no good midfielder to supply them