Whew!!!! Arsenal let out one giant sigh of relief
In the end, they did it. After 38 games and a...
The issue of a Rights Issue
By Phil
Updated: June 6, 2012
Ed Note: This week I wanted to focus the site on things Arsenal could do to ‘compete’ off the pitch against the growing behemoths of City, Chelsea and the established giants in Madrid, Bayern and Barcelona. I was in the midst of doing research on the whole right’s issue, and had a great conversation with the likes of Tim Payton and Phil Wall of the AST, Swiss Ramble of you guessed it Swiss Ramble and Darren the tweeter behind @DarrenArsenal1 on twitter. I guess the discussion prompted Phil to write a piece and after reading it here - I reached out to Phil to see if he would mind us publishng it here. Thankfully he agreed and here it is in full glory.
You can follow Phil on twitter as @AngryofN5 and his site is angryofislington.com. I hope you enjoy this piece as much as I did. - DAG
This subject has been discussed before, but may well be raised again at the supporters’ Q&A with Ivan Gazidis, given the refusal of Stan Kroenke to put money into the club’s coffers, and the apparent desire of Alisher Usmanov to do so.
I’m taking some of the general info and definitions from this web page: http://www.investopedia.com/articles/stocks/05/062905.asp#axzz1woxuRhFG
but adapting it to Arsenal’s circumstances. Football clubs in general don’t always follow standard business models, so standard definitions don’t always work. Plus this is an Arsenal blog, and Arsenal are in the fairly uncommon position of having two shareholders owning nearly 97% of the shares, with both wanting control. Their motivations, as well as those of the remaining small shareholders who are largely also fans, are very different from most business situations.
What is a rights issue?
A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. More specifically, this type of issue gives existing shareholders securities called “rights”, which give the shareholders the right to purchase new shares at a discount to the market price on a stated future date. The company is giving shareholders a chance to increase their exposure to the stock at a discount price.
So in plain language, a company issues more shares to get cash, and the existing shareholders have first call on purchasing them, with the incentive of some discount. In Arsenal’s circumstances, where two shareholders between them own 97% of the company, there is no real need to discount the shares. However, small shareholders may not be keen on stumping up upwards of £14k a share; they may not be keen on stumping up anything.
The key point in the definition is that it’s new shares, so the company gets new money. That’s the purpose. Arsenal could save £20m a year in interest and capital repayments if they got rid of their debt, or just have a huge pile of extra cash to spend now.
Until the date at which the new shares can be purchased, shareholders may trade the rights on the market the same way they would trade ordinary shares. The rights issued to a shareholder have a value, thus compensating current shareholders for the future dilution of their existing shares’ value.
Trading the rights would cause complications in the case of Arsenal – see below.
Troubled companies typically use rights issues to pay down debt, especially when they are unable to borrow more money. But not all companies that pursue rights offerings are shaky. Some with clean balance sheets use them to fund acquisitions and growth strategies.
Arsenal is not ‘troubled’ in a financial sense – well, not unless you’re comparing to Man City, but in the sense of running a sound business, not. So I repeat, the idea of a rights issue would be either to pay off the debt and free up the £20m-odd per annum in interest and repayments, or keep the debt and just go on a player spending spree.
For reassurance that it will raise the finances, a company will usually, but not always, have its rights issue underwritten by an investment bank.
This means that if some, or even all, shareholders don’t want to take up the rights issue, the underwriter guarantees to buy them so the company still gets the money it was expecting. In Arsenal’s case, Usmanov has apparently offered to underwrite, but that wouldn’t suit Stan (read on for explanation).
So, how do rights issues work?
Let’s do this in Arsenal terms, but keep the figures simple for the example. In reality they wouldn’t try to double the value of the company in one go.
Arsenal want to raise cash, so suppose they announce that they’re going to issue one new share for every current share, at a price of £10k per new share. So everyone who owns any share or shares can buy the same number of shares for £10k each.
As a shareholder, you normally have three options when considering what to do in response to a rights issue. You can:
- subscribe to the rights issue in full, and buy all the new shares offered to you
- ignore your rights, or
- sell the rights to someone else.
This is what happens in each case:
Option 1 – Take up the rights to purchase in full
To take advantage of the rights issue in full, you would need to spend £10k for every Arsenal share that you are entitled to under the issue. If you hold one share you can buy one new one at £10k, and if you’re Usmanov and hold (approx.) 18,500 shares then you have to spend £185 million. If you’re Kroenke and hold about 42,000 shares, then you have to pay £420 million. As I say, Arsenal (or indeed pretty much any business) aren’t going to try and double the size of the company in a single rights issue, and the amounts involved are one reason why.
There’s no legal reason why they couldn’t issue as many new shares as they wanted at any price, if both billionaires were equally desperate to pump money in, but in practice in Arsenal’s case it would be more sensible to issue, say, one new share for every five currently held, with a price of £10k. That would mean about 12,000 new shares times £10k, raising £120 million. The particular difficulty here is the number of small shareholders with only one, two or even four shares – they would be issued no new shares. They might not want them anyway, but the point is that the percentages held by the two big players would change unless every single shareholder bought shares in exactly the percentages they already held. Alternatively, if shareholders with one share each were allowed to purchase another share while the big shareholders could only purchase one for every five, the percentages held by the bigger shareholders would be diluted (admittedly only very slightly, given how few shares remain outside the hands of the big two). Either way the answer to the problem is a share split before the rights issue – see below.
So if everyone takes up their allocation in full, then the percentage holding for each shareholder obviously doesn’t change. In the one-for-one example, everyone has twice as many shares as before, but Usmanov still has just under 30% (his position at time of writing), Kroenke has just under 67%, and the rest have their miniscule proportion. There is no power shift; no one gains an advantage or is disadvantaged. The company has more money, and is worth more, that’s all.
If there are 62,219 shares (the number currently in issue for Arsenal) valued at £14k each and another 62,219 that will be bought at £10k each, then the average value is obviously £12k, so once the rights issue is over, that will be the approximate price, all other things being equal.
However, in football all other things aren’t equal (for one thing, football clubs aren’t generally run with the main purpose of making money for shareholders), and the Arsenal share price is currently affected as much or more by the fight for control as by the actual and potential earnings of the company. So in practice it wouldn’t be easy to predict the ‘new’ price that would be applicable once the dust had settled.
The key point here is that in a standard rights issue the new shares are discounted so the average price is lower than the ‘old’ price, and thus the ‘new’ price, being at or around the average, also ends up lower. For Arsenal there may not be a discount and the price of a share, ‘new’ or ‘old’, has other forces acting on it.
Option 2 – Ignore the rights issue
If you don’t have the cash to buy the shares offered to you as an existing shareholder, you can just let your rights expire. Normally this is not recommended, because your shareholding becomes diluted thanks to the extra shares issued, and the ‘new’ price is almost always lower than the ‘old’ price. So in our example, you had a share worth £14k at the start of the process, and now you have one worth £12k. That doesn’t look wise.
However, in Arsenal’s case this is less relevant, unless you have been very recently buying Arsenal shares as an investment. Small shareholders aren’t usually bothered about how much of Arsenal they own, they just want to keep a little bit of the club because they’re fans. Obviously it’s nice for them if their asset goes up in value, but only relevant if they’re going to sell, and there aren’t many of those people left.
For Usmanov and Kroenke things are different, and they have different motivations. Kroenke doesn’t want to spend more money, but if he didn’t take up a rights issue then he’d end up with a smaller percentage of shares than before. Maybe he wouldn’t be bothered as long as he still had more than 50%, but presumably he doesn’t want to make it too easy for Usmanov to get over 30% and start causing trouble.
Usmanov, of course, does want to increase his percentage shareholding, and seems prepared to pay any reasonable price to achieve that. So a rights issue suits him, because if anyone else doesn’t take up their full allocation of new shares and he takes all his, then his percentage of Arsenal increases. Realistically Kroenke is never going to let him get to a majority shareholding this way, though it is of course mathematically possible. Usmanov could even offer to underwrite the issue, meaning he would get all the shares that weren’t taken up by any shareholder, thus increasing his percentage still further. So ‘generous’ offers from Usmanov to do this kind of thing should be taken with a large pinch of salt.
If I were Kroenke and I wanted a rights issue but didn’t want the risk of Usmanov’s percentage increasing, then the only way I could guarantee that would be an agreement up front with Usmanov that both would take up all their rights (they could both agree to take less than their full allocation, but that would be pointless in practice) and that if others didn’t take up their rights, then all shares not taken by others would be split so as to maintain the current percentages between Kroenke and Usmanov. It would be no good agreeing not to take up anyone else’s rights, because then although the percentages held by Kroenke and Usmanov wouldn’t change in relation to each other, they would both have a slightly larger percentage of the whole – and I’m assuming Kroenke doesn’t want Usmanov to have any larger percentage.
Option 3 – Selling your rights to other investors
In some cases, rights are not transferable (non-renounceable rights). But in most cases, your rights allow you to decide whether you want to take up the option to buy the shares or sell your rights to other investors or to the underwriter.
Again, in Arsenal’s case, with Kroenke and Usmanov in the positions they are, it’s unlikely there’d be the chance to sell rights: if either of them were going to sell rights, there wouldn’t be much point in having the rights issue, and if small shareholders were allowed to sell then Kroenke wouldn’t want Usmanov to get someone else’s rights and change their relative percentages that way.
In summary:
- a rights issue would be a good way of raising cash for Arsenal to invest in players or pay off debt
- it’s largely a one-off exercise, not something that can be repeated year on year
- there would be complications for small shareholders, but these could be got around with a share split
- in practice it’s not going to happen because Kroenke doesn’t want to spend any more than he already has; that’s the number one thing preventing it. Thus if Ivan Gazidis is questioned about it, his response as Stan’s employee is that it’s unnecessary. I doubt he believes this, but we’ll have to wait for his memoirs to get a different story.
It should be noted that FFP sets limits on what clubs can raise this way, so £120m may fall foul of that.
When I was three quarters of the way through writing this, I remembered that the AST had done a paper about three years ago (to which I contributed) outlining their position on a rights issue. This goes into how it could work for Arsenal, including the share split mentioned above. Some things have changed since it was written: we now have a single majority owner, the share price has doubled in the last three years and the property development eventually broke even. So some of the references have dated, but the principles still largely stand. As this was written three years ago, please do not take this word for word as official current AST policy!
Arsenal Supporters’ Trust: Rights Issue information, 2009
The possibility of a rights issue for Arsenal has been in the news this year (2009), as a formal proposal was put forward by Red & White Holdings as a way to raise capital for the club in the light of a shortfall in expected revenue from Highbury Square. The club rejected the idea on the grounds that a rights issue does not fit with the sustainable model that Arsenal hold dear.
A rights issue is a very common way for companies to raise money and does not mean relying on gifts or a “sugar daddy”. We believe that seeking investment from willing shareholders does not go against the self-sustaining model. The value of the company is increased by a rights issue. It is a proper investment decision and not an Abramovich-style ‘loan’ or gift. Listed companies frequently issue shares to fund growth and to make acquisitions, and this activity is regarded as self-sustaining.
A one-off rights issue could be used to retire expensive debt, for example that at Highbury Square, and could also be used to invest in the playing squad and the club’s facilities generally. Reduced debt cost means more money available to spend from future turnover. Proceeds could even be used to buy Arsenal Bonds in the open market. These are currently available at heavily discounted prices (circa 60% of par).
The AST has raised the subject of a rights issue with the club in past years, but we were advised by the club that they saw no need for one and no need for the capital it would raise. We could understand this sentiment two years ago when property development was proceeding well and the property market was buoyant. Current conditions in the economy and at Highbury Square have changed the situation. A one-off rights issue now could put Arsenal back on the business plan envisaged when the new stadium was constructed.
The AST would only support a rights issue that was built on the principle that its outcome was ‘ownership neutral’, and that the involvement of small shareholders would not decrease. This would mean that small shareholders must have the right to purchase shares equally with the major shareholders. We are firmly against the idea of one shareholder becoming too powerful.
How would it work?
To make a rights issue easier to manage we would advocate a share split being undertaken at the same time. This would also make our sharesave scheme easier to operate. This affects only the mechanics of the scheme rather than the principle, but we are keen on a share split as a lower share price allows all smaller shareholders to buy more shares.
Our rough calculations show that a 1-for-5 rights issue at £6,000 per share (more than a 25% discount on the recent mid-price) would raise £75m. However, without a share split the scheme would have to be skewed so that shareholders holding fewer than 5 shares (around 2% of current shares in issue and 1,300 shareholders) would be entitled to take up 1 share; shareholders holding between 5 and 10 would be entitled to take up 2, and so on. In other words the general principle of 1-for-5 applies, but larger shareholders may need to take a pro rata reduction in their allocation to ensure small shareholders are fairly treated.
As an alternative, a 1-for-3 rights issue at £7,000 per share would raise £147m. Again, without a share split the scheme would have to be skewed so that shareholders holding fewer than 3 shares would be entitled to take up 1 share; shareholders holding between 3 and 6 would be entitled to take up 2, and so on. So the general principle of 1-for-3 applies, but again larger shareholders may need to take a slight pro rata reduction in their allocation to ensure small shareholders are fairly treated.
It’s unlikely that all shareholders would take up their full allocation under the rights issue, so the underwriting of such a scheme needs to be carefully considered. To maintain plurality, no single shareholder (or group of shareholders acting in concert) must reach a holding of 30% of issued shares, as stock market rules would force a mandatory bid for all shares at this point. Thus any shares not taken up by current shareholders should not be available to major shareholders – ‘major’ in this case being, say, any individual or company with more than 5% before the rights issue. But there would be a need for the rights issue to be fully subscribed, to prevent changes in percentages held by major shareholders. This raises the possibility of underwriting by an outside party, for example a financial institution (or even an individual) who was prepared to purchase shares and perhaps hold them to be available for buyers in the sharesave scheme or make them available to any other non-shareholder.
The underwriter would buy shares at the rights issue discount price, but be able to sell them at market price. A profit is appropriate in such circumstances to compensate for the risk involved in such a deal. It’s important to note that sharesave purchasers would not lose out: they would be buying shares at market value, exactly as though they were buying from any other shareholder. The difference with this scheme is that money has already gone directly to the club at the time of the rights issue.
Clearly there are many factors to consider to ensure that all shareholders are treated fairly and plurality is maintained. Terms of the rights issue (ratio and price) can be set in numerous ways and the above examples are purely indicative.
Further, the self-sustaining argument could be reinforced by issue of redeemable preference shares under the rights issue; that is shares the club can buy back in the future as funds allow and once other debts are repaid. Such preference shares could even attract a modest coupon of perhaps 1%, albeit rolled up and paid at redemption, but still demonstrating self-sustainability. Having said that, the AST is not generally in favour of dividends being paid. We believe all monies earned by the club should be reinvested in the club.
Summary
Depending on the price and terms, a rights issue could easily raise £100m. This could provide a significant boost to funds for squad strengthening, or an equally significant reduction in debt.
We would like to state clearly that there is a need to make sure small shareholders are not disenfranchised by this. All shareholders must have the right to subscribe to a rights issue. Of course they could also sell any rights in the market if they are unwilling or unable to take them up.
If a rights issue was promoted alongside a sharesave scheme then a very powerful PR message of custodianship is given, whilst not significantly denting the big shareholding blocks. If the value of the club increased in line with expectations as a result of a rights issue, then all those taking up rights with a discounted rights price would be getting clear benefit for their investment.
The AST stands for custodianship and plurality of ownership, including small shareholders having a significant (ie greater than 10%) shareholding in Arsenal. We will urge all major shareholders to commit to preserving this position through the sharesave. As detailed here, we believe a rights issue can greatly assist in this aim.
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caribkid says:
Agreeing 100% with Joshuad. This season only ...
Whew!!!! Arsenal let out one giant sigh of relief
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DaAdminGooner says:
Agreed...
Whew!!!! Arsenal let out one giant sigh of relief
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joshuad says:
the reality is there are no superstars on thi...
Whew!!!! Arsenal let out one giant sigh of relief
stag133
14 June, 12 at 14:57
DAG.
You OK?
or on a Summer Hiatus?
DaAdminGooner
14 June, 12 at 21:14
@stag133,
Took a week off – some new stuff coming out tonight and tomorrow.
stag133
15 June, 12 at 03:15
@DaAdminGooner, no worries. just checking on ya!
you get holiday from us!
:)
Caribkid
13 June, 12 at 19:43
Does anyone realize if Giroud is signed we would have 3 left footed strikers? That doesn’t make sense tactically or from a team organization point of view. Add Joel Campbell to the mix and he is also left footed.
Just doesn’t make any sense whatsoever.
PS: Arsene, instead of providing TV analysis for the Euros and maybe spend more time learning new tactics and preparing for next season we would be more successful. Arsene, is a 7.2 M salary not enough?
HighburyTerraceSteve
13 June, 12 at 20:05
@Caribkid, Personally I did realize this and,
though I hate to agree with him, it makes Stag’s pronouncement about RVP
being gone seem all the more likely….
As always however I have a more positive take on all the left footers….
Like in baseball, the predominance of Right-handed players means that right-
sideness is the ingrained “default” setting which players revert to….in
other words, without thinking, defenders play their opponents’ right foot,
midfielders pass to their forwards’ right feet (all things being equal, of
course), etc., etc. Having a bunch of left footers playing together or
stepping in for one another, could be a good thing for building a certain
instinctual understanding between players…..Right footers (including Theo,
Ox–and right foot ONLY players like Rosicky and Ramsey) are a dime a dozen
(as we say…..)
So (as I’m sure some will conclude I’m saying….) Wenger is a genius who
must never be questioned….(And, since his influence is pervasive in the
game….we should get more money for RVP when, inevitably, we sell him)….
(Winky faces all around, eh, for those who cannot recognize sarcasm…..)
stag133
13 June, 12 at 14:09
Add Rosicky as another one NOT to be counted on for next season… he had his best Arsnal season by far, last year… got injured in the last match, and just got back for the opening game in Euro 2012.
He injured his achilles and came off at the half of yesterday’s match.
Achilles injuries aren’t a few weeks… they are season enders.
It’s too bad for Rosicky, he started to show signs of life …
but he is “THE GLASS MAN”… and glass breaks.
HighburyTerraceSteve
13 June, 12 at 17:55
@stag133, Always so positive about our players….
On that same note (and in honor of your love of stats….) Nicky B. just
scored for Denmark, following a play for the easiest of tap ins…. That
would make the tally (thus far) of former players including loanees (Arsh,
Bendtner) with 3 goals (Cesc, Nasri, Bendy) and 3 assists (Arshavin) vs the
bagel (zero) for current players…. And “future players” (Giroud, M’vila)
didn’t even take the pitch for France last time out, though I guess Mar-van
Mar-Tan did (though he’s off to Lille, no Park-like hijacking of that deal at
the final hour, it seems….)
Maybe Poldoski (a future player) or RVP (a current or former player….) will
get on the board in the afternoon match…..
Fun times….I know the DAG must be working on a Euro thread….. No hurries, no
worries….
HighburyTerraceSteve
13 June, 12 at 18:41
@HighburyTerraceSteve, Whoa….
I can’t really comment to Bendtner > Giroud, but, on current
evidence you could argue he’s better than Ronaldo….
Maybe we can sell him for 80 million pounds…..(you know, just
trying to think like my club….)
stag133
13 June, 12 at 21:51
@HighburyTerraceSteve, I’d say what a player does in this tournament, has very little to do with how he’ll perform at the club level.
In the National team, his position can be different, the teams formation can be different, and the level of your team-mates can be different… opposition quality level, very very different…
There are players that will score goals here, that don’t at club level, and vice-versa.
I PRAY this enhances the view of Bendtner, and we can get him SOLD, for a nice profit.
That way, we can all say… “nice piece of business for the club”.
Yes, Giroud is a “lefty”… but RVP is going to be sold.
No worries.
stag133
13 June, 12 at 21:52
@HighburyTerraceSteve, oh, and how’s Mertsacker been for Germany?
Can’t get on the pitch?
well, they’ve qualified for the next round… so maybe he’ll start against Denmark.
If so, I’m betting the OVER in that one!
HighburyTerraceSteve
13 June, 12 at 22:00
@stag133, heh, heh…. And why
not let him while “playing” for a draw with the Danes….
a result which, I think, would eliminate any pesky chance for a
comeback from the Dutch (who can only
advance if they beat Portugal by 2+ goals while Germany beats
Denmark in round 3)….
At least RVP got his goal…..
stag133
14 June, 12 at 02:41
@HighburyTerraceSteve, yes. we want him to score 3 or 4 against Portugal… that way his value will increase… and we can sell him for 35 Million… and we can all say…
“nice piece of business for the club”… and “Arsenal will go on without him”…
stag133
12 June, 12 at 13:50
Arsenal to sign Giroud from Montpellier.
(there goes that theory about waiting until the Euros are over!)
We’ve already signed Podlolski.
I’d say this is a pretty good indicator that we are selling RVP.
How many strikers can a team have?
Especially since SCORING was not our problem.
DEFENSE is the biggest issue in the team, and we’ve yet to do ANYTHING in that area.
Maybe Wenger wants to outscore his opponents 4-3?
seattle gooner
12 June, 12 at 17:51
@stag133, You think it means RvP is gone, or isthere a possibility that Podolski will be put on the wing? That wouldn’t surprise me the way Wenger shifts people out of position. I certainly hope that’s the case, but I am pessimistic that RvP is staying.
Giroud won’t be going anywhere until after Euros – or so I’ve read – so nothing is a done deal yet. It would be classic Wenger though – buying a bunch of forwards when a real DM is what is drasitcally needed. I think that would solve a lot of the defensive problems the team has if there was a DM that would actually stay home instead of running forward all the time. It was really obvious – particularly in games like Norwich at home – that the defense was left really exposed without a midfielder in sight.
stag133
12 June, 12 at 18:57
@seattle gooner, SeattleG.
I totally agree a stay at home DM, would help the back 4, but I also believe we need a big strong stay at home CB as well…
I do think RVP is gone. That’s just my feeling.
He won’t sign a new contract, unless we really do some business, and even if we do, I think Arsenal might ca$h him in now… when his value is at its highest.
I don’t want to see players out of position again…
We have wingers in Ox and Theo… with good speed.
But I watched a good amount of Ligue 1, and Giroud had an excellent season.
seattle gooner
14 June, 12 at 00:41
@stag133, Good to hear about Giroud. I don’t really watch Ligue1 o all I have to go on is Youtube highlights.
Watching a little of the Euros, it seems like Podolski tends to drift to the left wing anyway, so I’m not really sure it would be out of position for him.
I have a bad feeling about RvP too, but if they cash him in it will at least be to another league and not Man City. And, if they are going to sell him, at least they are making an attempt to bring in new talent. It could have very well been Chamakh and Park next year. Ugh.
Caribkid
12 June, 12 at 17:56
@stag133,
Don’t think you can make that conclusion from this move if it goes through. Both Manchester teams have 4 strikers as do Juventus. Chamakh will be on his way out, probably in a partial swap for Giroud, Park is non-existent in Wenger’s eyes and Both Poldi and RVP can play as a 9 or a 10 with Poldi also being mainly used on the wing.
stag133
12 June, 12 at 19:01
@Caribkid, Carib.
I draw that conclusion!
We aren’t both Manchester teams or Juventus. They are all more interested in winning, than making profit, or even balancing the books.
I HOPE Chamakh goes in partial return for Giroud, it would be good for him, and for Arsenal.
I can’t see RVP signing, without us bringing in serious players.
If he doesn’t sign, we’ll sell him.
No choice in the matter. And we won’t turn down the massive fee.
We’ve already had Hill-Wood say that we can’t pay him a really high salary.
That’s the club’s out…
joshuad
12 June, 12 at 19:28
giroud is not a good player and won’t make arsenal better. i prefer bendtner.
stag133
12 June, 12 at 20:58
@joshuad, LoL!
that’s pretty funny Josh.
Keep them coming. We could use some comedy relief.
Giroud hat 21 GOAL and 9 ASSISTS for a team who came from nowhere to win League 1.
Bendtner has never done a damned thing of note…
8 goals for Sunderland, and he didn’t want to be there, he doesn’t want to earn his place at Arsenal, and he just wants to be given the No.1 Striker moniker at a top team.
You can have Bendtner. For Free. I hope he’s sold and he’ll ride off into oblivion.
joshuad
13 June, 12 at 02:46
@stag133, you tend to look too hard at stats when making judgements, like theo being second on the team in scoring. theo scored 4 goals, stag. my assessment is simple; it’s based on what i’ve seen him do. old on whatn’t think he’s that good and bendtner is a better soccer player. gervinho and chamakh scored a similar number of goals. france isn’t the bpl.
joshuad
13 June, 12 at 02:53
@joshuad, sorry, trying to type on my phone. what i meant to say is i don’t think giraud is a better footballer than bendtner and he won’t compete with van persie so why waste money on him? arsenal need a playmaker.
stag133
13 June, 12 at 03:08
@joshuad, I DEFINITELY know Giroud is a better footballer than Bendtner.
Not sure how you can rate Bendtner at all. What has he ever done.
Giroud’s season speaks for itself. It was fantastic.
Why waste money on him? Because we are SELLING Robin Van Persie.
That’s my opinion.
He’s going to be sold, as we aren’t paying him anything close to the salary he can command at numerous other teams.
So, without RVP, we need Strikers… Podolski, Giroud, and Theo will be put up top as well.
I absolutely agree we need a playmaker, but believe we need a DM as much if not more…
and a strong, big, stay at home CB, more than anything.
We have more money than we know what to do with… and we’ll have a big bunch to spend after RVP
is sold… as always with this club, the question is, what will we do… the answer is always, not enough.
We’ll make a profit on selling players. That much is for sure.
stag133
13 June, 12 at 02:57
@joshuad, Josh.
you need to check YOUR stats. Theo scored 8 goals, had 8 assists.
Definitely improved his crossing, and linked up well with RVP regularly.
You don’t have to like him, but he’s our 2nd best offensive player.
In regard to Giroud. I watch the French Ligue 1 … more than any other league besides the EPL.
If you watched Montpellier this season at all, you can’t possibly argue that Giroud had an absolutely outstanding season.
its not even debatable.
So, please don’t compare Bendtner. He was SHIT for Arsenal… and he wasn’t spectacular starting for Sunderland either.
If we can send Chamakh back in a part exchange for Giroud, AND SELL BENDTNER for whatever we can get, its a massive positive for the Arsenal on and off the pitch.
Caribkid
11 June, 12 at 14:06
The Ox is starting for England while Theo remains on the bench. Let’s see if Theo still thinks he should get a raise.
HighburyTerraceSteve
11 June, 12 at 16:55
@Caribkid, Yeah, interesting…..
I think Hodgson is desperate for some direct contribution and the Ox is maybe
better than Theo (already) in this category. Wenger, on the other hand, seems
to like the threat and “pitch expanding” that Theo’s presence off the ball
(maybe) brings so his midfielders (I’m thinking Sicky and Ramsey) can have
room for their (right-footed) circles…..
All told, my lasting impression of the Euros thus far is that I wish Cesc
still played for us…..
HighburyTerraceSteve
11 June, 12 at 17:29
@HighburyTerraceSteve, 25 mins into
the match and it’s awfully slow….Anybody care to join me in
the GDC?…..
Theo might get a start (next time) after Milner rounds Lloris
but misses the open net. Ox already the best looking English
player, but Wellback can’t stay onside….
Seems to me that the French could really use Sagna and Diaby
(injured, of course….) and Koscielny, too unknown to get the
start…..
stag133
11 June, 12 at 21:03
@HighburyTerraceSteve, yes. if the French want an own goal, bring on Koscielny, definitely.
The 8-1-1 English formation was quite effective!
HighburyTerraceSteve
11 June, 12 at 21:40
@stag133, For a guy who
appreciates defense (defence) as much as you do, I’m surprised
that you can’t see past Koscielny’s own goals…..
I salute your contrarian spirit! No matter how many pundits
say Kos was among the very best defenders in England this
past year, you will insist that he is absolute shit….
Sometimes, I wonder, however if you’re just blinded by the
color of his shirt……
(Winky, winky, eh, my friend….)
On another note, is now the time to make a bid for Sheva?
Maybe if only to induce Roman A to outbid us and bring him
back to London…. After all, pound for pound, he did no
worse than Torres…..
stag133
11 June, 12 at 23:41
@HighburyTerraceSteve, I watched every Arsenal match, though more on tape than I ever have before…. and I don’t care what you, or any pundit says, Koscielny is not a great defender. The team allowed 49 GOALS, and he is a CENTRAL DEFENDER.
How can he be so good, and the defense be so woeful.
He is part of the problem, that’s why…
The numbers simply don’t lie.
Arsenal don’t have any really good defenders, besides Sagna… NONE.
They are very much prone to mistakes… take penalties, own goals, give free headers, and are highly susceptible to set-pieces.
Koscielny would be a good choice as a 3rd or 4th defender.
Unfortunately for us, he’s allegedly our best CB?!
and no.
apparently you don’t bid on players during the Euro’s or World Cup… because nobody will sell to you.
?
so, you have to wait until the end of the Summer, when there is a few days before the new season, then sell your Captain, and not have any time to replace him.
stag133
11 June, 12 at 21:05
@Caribkid, not sure what that matters… what does Hodgsen know about either of them!
Theo stats speak for themselves. I hope Ox can tally the point totals and goals Theo has.
stag133
10 June, 12 at 15:25
Peter Hill-Wood, basically laying the groundwork for RVP’s exit/sale…
saying if a team offers RVP crazy money, that Arsenal can’t compete with that… they won’t pay his salary.
He’s outta here.
HighburyTerraceSteve
9 June, 12 at 15:39
I think we need a new thread, one on the Euros….
Tough times for Sneezy, but at least it’s not while playing for us, and an experience that will either kill him or make him stronger. And Arsh, in an open match (against poor competition) looked to be having fun, which was really nice to see. Sicky, I think, might tell you that Theo and RVP are more inviting targets/teammates than Milan Baros, and that a world class keeper cannot make up for (very) average defenders…..
On the rights issue….mixed in with a bit of gaz from the gaz-man…..I think the idea for Arsenal is that we’re gonna nickel and dime our way to success which will require something many “supporters” simply do not possess: patience. A few extra pounds (or millions of pounds) really makes no difference at all, if there are teams ALWAYS prepared to pay more….
It is quite clear that there is zero intent to compete with the City and Chelsea projects. If there was, Usmanov would be our guy rather than Kroenke. CK is correct that the latter is making money on the side with the (US) television stuff, but compared to the wheelings/dealings of the Glazers or the Scouse Texans it’s all pretty mild and could be seen more as brand marketing. Silent Stan obviously likes investing in sports and, now that he’s backed off from the (insane) price of the LA Dodgers, Arsenal is his big one. There’s still a chance he (and his buddy Phil Anschutz) may flip our little club and go all-in with an NFL stadium project with the Rams going back to LA, but there are a few wrinkles yet to be ironed out….At that point (maybe) we’ll see what Red and White is really all about. In the meantime, it’s the Devil we (sorta) know…..
For me, it’s all very interesting….I have less background in the old days of English football and I’m most keen on seeing the game played at it’s highest possible level (and I feel BLESSED that my Club will, eventually, I hope, be right there). Obviously, it’s a twisty road but I think even the Sheiks and the Oligarchs know that it’s not good (long-term) to hoard the best talent and that (global) fans need to see actual competition on the pitch. Short term it IS good for City to have a second 11 whose average pay equals our top earner (and beat us with regularity) but it will eventually alienate the global AND local audience. The traditions (hard core support/tribalism) of the game IS big a selling point but it’s morphing into global brand support, or something. Arsenal need to do better (enhance their brand) sooner than later (I think) but management seems to believe (and recent results would bear out) the idea that we can simply float our way to the top while others sink around us. I dunno. How long can Arsenal being the underdog team that plays pretty football?….
It’s no longer about trophies. Only the most sarcastic and hyperbolic sort (and I’m sure he will–rolly eyes….And I don’t think King Kenny reads the YAMA…..) can seriously argue that winning the domestic cups is more important than competing against the best teams–domestically and on the continent. (Yes, Portsmouth will ALWAYS have their–more recent than our own–FA cup….but I only know one fan who wishes that Pompey, not Arsenal, was “his” club….. Sadly Portsmith, if they continue to exist, will only play against the various B teams….)
So, if you support Arsenal you better be in it for the long-haul. A week ago, Don Draper said “happiness is the feeling you have right before you want more happiness” and I think that might describe a lot of the Disgruntled/Screamer/Dreamer (i.e., all we need is a new manager….) types. Those with a longer, more realistic, view might choose to dig into the classic rock archives. Optimists might choose Bob Dylan (“The Times they are a Changing”–”the loser now will be later to win”), while the angry/bitter might go with the Who (Won’t get Fooled again—”meet the new boss, same as the old boss”)….It’s all about perspective and the best of them all might be the Beatles: “Long and winding Road.”
Thanks for reading…..
stag133
9 June, 12 at 23:05
@HighburyTerraceSteve, The fact that its no longer about trophies, is all that really matters. Until is is about winning trophies again… its about fleecing the fans for as much as they can, for as long as they can.
If that is something to hang your hat on, and is somehow honorable… I want no part of honorable.
I won’t get fooled again, that’s for sure… and I know quite a few long time, season-ticket holders, who won’t get fooled again as well… you can fool some of the people some of the time, and some of the people all of the time… but you can’t fool all of the people, all of the time… that’s for sure.
so for those of you who still believe the club is admirable in doing business the way it does, and that we play some sort of pretty football still (which we do NOT)… then the new kits are out, so go buy a bunch, and some scarves and DVDs of the highlights of an amazing 2011-2012 season in which we rose from the ashes to WIN the BIG TROPHY… CL Football.
yay Arsenal.
DaAdminGooner
9 June, 12 at 12:47
Robin Van Persie’s father on potential moves for his son –
“He’d never go to Manchester City as it’s impossible he would play for another Premier League side that wasn’t Arsenal,” Bob van Persie told El Mundo Deportivo.
“It would make no sense to go to Barcelona when they’ve already got Leo Messi.
“Real Madrid would be a good option, but they are not so much a team as a collection of star names, so he wouldn’t really fit in there either.”
stag133
9 June, 12 at 23:08
@DaAdminGooner, yes.
that’s all good and well. I believe he wants to stay at Arsenal as well.
But if ARSENAL are doing the selling, and RVP isn’t choosing who we sell him to… he has what say in the matter?
City offer 40 Million, United Offer 40 Million, Juventus offer 30 Million, Madrid offer 25 Million.
Guess where he’s going.
nagabis
8 June, 12 at 20:51
Да простит меня Величайший Админ за мои Ашибки и Пригрешения.
stag133
8 June, 12 at 21:32
@nagabis, what’s that stay?
“Arshavin, why the feck can’t you play with this much passion for Arsenal?”
stag133
8 June, 12 at 05:30
Looks like Dennis Bergkamp will be taking over as manager of Swansea!
We could have the likes of Vieira as a coach in some capacity… and perhaps Bergkamp as well… I would imagine they have something to offer young players, as they have not only played and won at Arsenal, but at the international level, etc…
Of course, the only way this would occur, is if we get Wenger OUT… he is rigid, stubborn, and unyielding.
But the club CAN’T POSSIBLY GO ON WITHOUT HIM!
RIght?
I mean, what would we possibly do without Wenger as manager?
;)
DaAdminGooner
9 June, 12 at 12:53
@stag133,
Dennis is not going to Swansea. He still has rather large fear of flying Michael Laudrup is the reported front runner for Swansea.
stag133
9 June, 12 at 23:10
@DaAdminGooner, Hey, its being reported…
just throwing it out there for digestion. He’d be a good addition to Arsenal’s coaching staff, as he could travel by coach or train to all EPL matches, if necessary….
Swansea do NOT play out of the country by the way… they’ve got no matches in Europe.
So, he wouldn’t need to fly.
Caribkid
7 June, 12 at 21:22
Kroenke does take money out of the club in a rather smart manner. He owns the rights to Arsenal Internet content and uses that content as a marketing tool to sell through his media company along with all of his other sport franchises.
For instance, when we see arsenal content on the YES network in NY, it’s purchased through Kroenke because he owns that content in the US. Sales of that content does not go back into Arsenal’s coffers.
He also uses that content to enhance his retail and entertainment complexes in Colorado. Once again, that does not go back to Arsenal.
Kroenke may look like an idiot, but he is no dummy when it comes to business. He is not a sport fan like Henry from Liverpool, instead, he is a very calculating business man looking to solidify and expand his business empire and using one of the basic recession proof outlets, sports.
DaAdminGooner
9 June, 12 at 14:58
@Caribkid,
Are you sure of this. As best I can tell KSE UK only owns a 50% stake in Arsenal broadband. If you’ve got any more on this I’d love to see it.
Does KSE media sell the rights in the US? If so where are you getting that from?
Thanks DAG
Caribkid
9 June, 12 at 23:13
@DaAdminGooner, You are correct DAG in that Kroenke Sport Enterprises only holds 50% of Arsenal Broadband, which in turn, is also the majority holder of Arsenal Media.
Kroenke Enterprises also represents both Arsenal Broadband and Arsenal Media in the Americas.
in the Americas. That is a significant amount of money being hauled in by Kroenke through subscriptions to Arsenal player, Arsenal 360, Arsenal world, Kit sales (direct), etc.
Most of this is public knowledge DAG but I do know someone who works for Kroenke.
Kiwi
7 June, 12 at 01:23
http://www.thefootballnetwork.net/main/s378/st177894.htm
superb
stag133
7 June, 12 at 05:01
@Kiwi, that is 1000% what Arsenal are about now.
saying little to nothing… while fleecing the fans… fooling the fools…
Action is the only thing that matters. What this nitwit Gaz-man says or doesn’t say about our future, making moves, Cesc, etc… irrelevant…
we’re f*cked this off-season… again.
we’re going to do very little, and sell RVP at the end of the Summer, so we have no time to spend the money.
George
7 June, 12 at 09:21
@stag133,
The players were strongly linked with (Giroud/M’Vila) are at the Euros, why on earth would a club sell before the euros when they know they can get more money afterwards?
stag133
7 June, 12 at 14:04
@George, are those the only players we are interested in? Only players in the Euros?
What if the player gets injured or has a bad Euro tourney, his value goes down.
I am pretty sure Chelsea signed Eden Hazard… and
United signed Kagawa. There are other players out there beside Europeans.
What would we do with Giroud? Montpellier say he is valued at about 50 Million… and we have VanPersie, Chamakh, just signed Podolski…
We also have balked at the asking price of M’Vila, and were inquiring about a cut rate deal for DeJohng… (not that City would be dumb enough to sell to a rival)
But hey, what do I know.
ClockEndRider
6 June, 12 at 11:58
“……given the refusal of Stan Kroenke to put money into the club’s coffers, and the apparent desire of Alisher Usmanov to do so.”
Where does the evidence for this statement come from, Phil? The danger here is one of wish fulfilment. Actually, Usmanov has not at any stateg, to my knowledge, said that he will put money into the club. He has played around with PR but always come up short of saying he will invest. Further, at the time of his purchase of Dein’s shares he actually went as far as saying that the fiurst thing he would do on gaining a seat on the board woyukld be to institute a shareholders diviudend policy. So let’s be clear: Having not put a bean into the club, he is on record as saying that he would like to take money out.
And you wonder why the current incumbents are not keen on having him on the board…..
DaAdminGooner
6 June, 12 at 12:17
@ClockEndRider,
Actually it is Stan who is on record for advocating taking money out of the club. He cited his fellow NFL owners and NBA who do so. Saying it would be unheard of for them not to take money out of their franchises.
Also Alisher has stated he would invest in the club I believe and I will find it he is on record saying he would personally fund the Rights Issue 2 years ago.
ClockEndRider
6 June, 12 at 13:31
Actually,no it isn’t. Kroenke has now been major shareholder for a couple of years. He has not, as per the official accounts, taken a dividend. Of course he might well as majority owner do this at some stage of the future. However, Usmanov is the only party to have explicitly stated that he would introduce dividends. Something which the previous and current boards have not done for over 30years.
Usmanov has stated that he would underwrite the rights issue. At a time when it was never going to be taken u by the board. Hence effectively it was a promise which was never going to come to fruition. Therefore he is still in the position of not having put a penny into the club and having a stated objective of taking money out.
Sorry if this is not convenient to the argument but I believe it’s more important to look at what is rather than what we might like it to be…..
Mike
6 June, 12 at 14:13
@ClockEndRider, Thanks for this comment. I agree. Although I don’t have any insider knowledge of the club’s finances, there’s no indication that Kroenke plans to suck money out of the club. He may not be flooding it with cash for player acquisitions, but I think Arsenal supporters should prefer they devil they know (Kroenke) over the one they don’t. At least until evidence otherwise.
stag133
7 June, 12 at 15:21
@Mike, Why would supporters PREFER that we continue on this path of DOING NOTHING to improve the team? (while charging the fans among the highest ticket prices in Europe).
I’d rather roll the dice with someone or something new.