Arsenal turned down Kroenke transfer founds

Despite Stan Kroenke's offer to support English Arsenal by supplying a multimillion pound transfer budget, the club has turned down his help.

That move is keeping in line with the club's policy of shunning Kroenke's attempts to takeover Arsenal. The U.S,-born sports magnate tried to buy into the club, but has run into a block with current board members.

"It seems that the anxiety about Stan Kroenke and his intentions has been well documented," said a source close to Kroenke. "But he'd like to support Arsenal."

Kroenke, who was stopped with 12 percent of the club in hand, apparently put forth the offer in a meeting with managing director Keith Edelman and chairman Peter Hill-Wood, who issued a stunning rebuke during Kroenke's early tries at the club, saying the club does not "need his money and we don't want his sort."

Hill-Wood has eased his attitude toward Kroenke, but will not give in on the transfer fund issue. There has been no backing down from board members in regards to the pact they entered not to sell for at least a year.

"It went perfectly well," said Hill-Wood this week. "I hope we will be able to work with him in the future, just as we would with any interested people."

Kroenke would not sign on with Hill-Wood in an agreement to cease buying interest in the club for a year. There are approximately 12 percent of club shares in the hands of hedge funds and nominee companies. If Kroenke raised the stakes, he could have close to 25 percent of the club in hand.

Danny Fiszman, the club's leading shareholder, warned Kroenke not to try to force a takeover because more than half the club was in the hands of individuals who would not sell.

Despite Kroenke's pleas that he never has had to lean on mass borrowing when he purchased teams in the U.S., directors are shying from a takeover similar to what the Glazer family did at Manchester United, where debt payments of up to GBP 60 million have eaten into club profits.

The Arsenal Supporters Trust has urged the board to consider using a rights issue, whereby new shares are sold to raise capital for a company.

"The AST has previously raised the proposal for a limited rights issue with the Arsenal board," said a spokesman. "This would see extra money going into the club, rather than to shareholders, as currently happens when new investors buy a stake in Arsenal.

"The huge increase in the value of the club's shares in recent years would mean that no shareholder need suffer any financial loss from this approach."

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.