Learning A Lesson?
May 25th, 2007 by 'holic
If there is one story today that all those in favour of a leveraged buy-out of Arsenal should read it is the Daily Mirror’s exclusive’ that the Glazer’s are looking to offload Manchester United.
The haste with which denials have been issued is designed to pour scorn on the story, but considered opinion is that at very least they are testing the market to establish if a potential buyer is out there somewhere.
The size of the debt they have saddled on the club is very similar to that being considered by Stan Kroenke for Arsenal. If the Glazer’s are not making the returns they expected from Old Trafford are the prospects any better for the man from Colorado?
I think I have a solution. Stan, take your borrowed money and talk to Glazer and buy a club that may actually want to be bought. Then if it does all turn to rat droppings we won’t have to pay the penalty. Thank you.
5 Responses to “Learning A Lesson?”
Doesn’t really surprise me if it’s true. That’s why I was never in favour of a buy-out of Arsenal. These investors are businessmen who are looking to make money. With the need to constantly invest in the team to maintain success there would always be limits on the profits available after making the huge loan payments as well. You have to love football and the club you are investing in to make it worth your while as I think the rewards are more intrinsic than financial.
Absolutely agree with your sentiment. Well said!
I’ll drink to the article, and to both the comments… then I’ll have a few more.
When rumours of a takeover first surfaced I was unsure, then I thought it would be a good thing (based on the fact that DD want’s what’s best for Arsenal). Then when I sat and gace it some thought I realised how terrible it would be. Short term it might be great, money poured into the club…fantastic. But he would have to borrow about 80% of the monies needed to buy Arsenal, and there’s only one place that would go – straight onto the club.
And as ‘Holic said on another site, his exit plan would be the most firghtening thing of all. He would likely strip teh club of it’s major assets and leave us for dead.
Thanks guys, it really isn’t rocket science, and I am not against a takeover per se, but it has to be said that any leveraged buy out will put the future of Arsenal in some doubt.
Add the cost of the acquisition to the existing debt and we would probably find ourselves in deeper mire than the Salford Reds. A year or so hence if we can avoid such a deal we will start seeing the income from the property arm and the existing board will be judged on the amount of money re-invested in the football side of things. This will be the acid test.
I’m still undecided, to be honest, and thats only coz no one knows how Kroenke will financially manage the purchase. If it means an increased debt burden ala ManU, then I dont see the benefit. Plus it will be sweet if we win the Premiership in our current state, coz we are the only club in the top 4 not to have significant funds for transfers.
I do suspect though, that this summer, the Directors will be under pressure to give Wenger more transfer funds, if only to demonstrate their commitment to taking arsenal forward. Thats a pity.