Something to Think About

Stan Kroenke increases Arsenal stake yet again - Barclays Premier League - ESPN Soccernet

I'm not really a conspiracy theorist and I'm usually not one to give much credibility to one + one = three "Journalism" but here's something for you all to ponder as we head back into Premier League matches after the International Break. 

Fact 1: The link above shows that Stan Kroenke - owner of the Colorado Rapids (MLS, where current Arsenal CEO Ivan Gazidis was Deputy Commissioner before moving across the pond) among other US-based sports franchises - has been steadily increasing his stake in the club.  He is very close to the 30% threshold that will require him to make a takeover bid.

Fact 2: The St. Louis Rams of the National Football League are up for sale and Kroenke owns 40% of that club.  That club is valued in the neighborhood of $500 Million.  I read that as Stan Kroenke coming into about $220 Million in free cash in the not too distant future. 

Fact 3: Kroenke's recent purchase of .2% (or 90 shares) of the club cost him $1.2 Million.  That would value the entire club at approximately $600 Million. That puts the cost of the remaining 70% that Kroenke doesn't currently own at $420 Million.  I don't know too much about Kroenke's personal fortune but the fact that more than half of the cost to buy the balance of the club is coming free leads me to the conclusion that he is at the very least in a position to make it happen despite the difficult economic times.  This wouldn't necessarily be the highly-leveraged type of transaction that we saw at ManYoo or Liverpool.

Like I said, I'm not saying that this IS going to happen (per the article, Kroenke says it isn't his intention) just that the facts line up in such a way that you can't help but think that there's a good chance that it will happen.

Just something to ponder on a chilly, rainy Friday evening (at least here in DC).

See you tomorrow for the Live Chat


  1. Anonymous4:09 PM

    For those of you who care about American Football (Throwball), the word on the street is that Rush Limbaugh may make a bid for the St. Louis Rams.

  2. Neal - to quote the great band Styx, "too much time on your hands." It makes sense. I was just surprised when you brought math into the equation.

    Anon - That ship has sailed. The NFL and the Players Union demanded that Limbaugh be excluded from the Rams' bid. And so, the fat man is gone. He can down some of his prescription drugs to get over it.

  3. Dead Leg United6:06 PM

    Here's all you need to know about the Kroenke fortune - it's tied to the Walton fortune. As in Sam "Wal-Mart" Walton. So we're talking about more money than God, really.

  4. Limbaugh has been removed as a minority partner in one of the Rams takeover packages. Too much heat and too many players saying that they would never play for a Limbaugh owned team.

    As for chilly and rainy, what's that? I biked around the lake and swam in the pool today on a well-deserved day off. ;-)

    Good luck everyone. For the record, unless I get too scared or too drunk tonight, my team will be:

    Given, Verm, Heit, Sonk, Geo, KPB, BFAR, Dunn, RVP, Drogs, Saha

  5. Have Rooney at 16.37. Worth dropping for 1 week to pick up Saha or Kuyt?

  6. i would pick up kuyt

  7. DC weather sucks tonight and is supposed to suck all day tomorrow for UMD homecoming tailgating....

    Tough call to make on Rooney.... I'd love to pick either 3MP or Defoe but Defoe's hand and Keane-o's automatic selection status (maybe I should just pick him?) are making this difficult.

    Also thinking about bringing in Jenas/THudd for Bily. Pompey lack a spine and this is kind of game where JJ could score and set up another

  8. Fact 3: $600 million may be the implied valuation of that 0.2% stake but a buyout of the entire club would certainly cost more than a valuation of $600 million. Include a control premium of say 25% and $800 million seems more reasonable. Do a calculation on how much free cash Arsenal throws out each year, compare it to the stock market and then figure out if Kroenke has more attractive avenues for investing/spending his money.

  9. Anonymous6:25 AM

    There is a flaw in your logic: I sincerly doubt that Usmanov will roll over and let Kroenke take control. The fight for ownership of Arsenal is far from over, all the ho-ha over the 30% ownership is the biggest load of bull I have ever heard.

  10. of course go with saha!! liverpool will struggle!