Investor questions rejection of Usmanov's proposal

London-based investor Farhad Moshiri has questioned the decision taken by the Arsenal board to reject a rights issue proposal by billionaire and shareholder Alisher Usmanov.

Usmanov had proposed to the board that £150 million worth of funds could be made available through a rights issue that would be underwritten by Usmanov himself.

The money would also go some way towards reducing the long-term debt of the club, undertaken for the Emirates Stadium project.

Moshiri is questioning why the board would reject the potential cash, saying that it is obvious manager Arsène Wenger has his hands tied with regards to who he can recruit into the club.

I am led to understand that should the board have accepted the proposal from Usmanov, it would put the Uzbek tycoon in prime position to purchase additional shares within the club and thus gain control of the club.

Moshiri, who has close ties to Usmanov, said: "There is no question that it is a talented squad but there have been very limited additions and you cannot help but feel that there is still not enough depth to that squad.

"Based on our analysis any money is very limited and possibly spent already and I don't think there are any spare funds with the exception of Adebayor's proceeds.

"Arsenal are the only club in the land that rejects an offer to pay their huge debts in these troubled times, I'm truly mystified.

"It wasn't just about today, it was about making sure the club was well placed to compete at the highest level of European football for the future."

User Comments

Michael

Posted on 27 Jul, 2009 at 02:18 PM - Reply

Members of the board are a collective embodiment. Very intelligent people mind you. They know what is best for the Club. I have to admit, at first I was puzzled why they didn't take the money, but as I sat an dwelled on it, I knew that Usmanov had to have something coming on the back end that would jeorpardize our Club. I say well done board. Keep up the good work

FletcherNYC

Posted on 27 Jul, 2009 at 05:46 AM - Reply

I wouldn't take anything Moshiri says as anything other than a tactic to push Usmanov's agenda. The fact that this article's title seems to indicate an unbiased investor's input is frankly misleading and irresponsible.
Arsenal rejected this offer for the same reason that one decides not to become a prostitute. Usmanov's generous offer to underwrite the offer is his way of trying to dilute the working structure of the club. Frankly, I would prefer Arsenal remain a sustainable business and remain trophyless than sel out to an Oligarch who will abandon the club when he gets bored or has made his profit at our expense.

Gooner4life&beyond

Posted on 27 Jul, 2009 at 02:23 AM - Reply

Too right they rejected it, I do not want Usmanov in charge. His dealings with the club have been much less than straightforward. I'd rather Arsenal lose some of the higher profile players and finish 6th or something than become like Chlesea or Man City. Supporting Arsenal is about more than what we are winning, it should be like that for any team.

Anurag

Posted on 27 Jul, 2009 at 01:21 AM - Reply

Um..I think it is important to realize that 'Farhad Moshiri' isn't your everyday economist. He is actually co-owner of Red and White Holdings, the group that USMANOV owns. Therefore, any increase in Usmanov's shares corresponds to an increase in his own so of course he is going to support the rights issue.

His daughter goes to my school and that's how I first heard of his name, but if you do a quick search, you can see where he comes from yourself.
I'm not saying that what he said was wrong. I'm just saying we should not listen to it blindly because some 'expert economist' had an opinion about the club.

RobM

Posted on 26 Jul, 2009 at 11:26 PM - Reply

DeadGoodSoup
Have you considered that maybe the board place the long term prosperity of the club over next season's starting 11? And that they are right to do so?

What evidence do you actually have that the board are not thinking of the quality of the team? You think they'd have funded the purchase of Arshavin if that were the case?

supergonner

Posted on 26 Jul, 2009 at 11:04 PM - Reply

yes he right they are charging top 4 money to the fans and not adding to the team we sell at least one or 2 of our best players every season now and know matter what we think of the club its getting weaker every year

Beet

Posted on 26 Jul, 2009 at 10:32 PM - Reply

If Usmanov wants to buy Arsenal why does he not make the shareholders and offer they cannot refuse?

deadgoodsoup

Posted on 26 Jul, 2009 at 10:15 PM - Reply

He is absolutely right: the board are not thinking about the quality of the team and are merely relying on the blind allegiance of 60,000 idiots who turn up every game for extortionate ticket prices.
They forget the days when arsenal averaged 29,000 for more than a decade! And prices were much cheaper and there was standing too!
If they lose their lofty position they will lose their best players too. They will sink and they will not easily recover - unless they do a Man City!

User Comments

• Got something to say?
• Read comments

Vs chelsea