$tan Kroenke Becomes Soul Owner

[razörist]

Realistically, Kroenke wasn’t going to loan £100m cash back to the business. Having said that, Would we have got both Aouar and Partey, considering Aouar would’ve been instalments over 4 years.

Still, to actually pay £45m CASH in one hit, implies that Kroenke did in fact loan the business money that they can pay off over a decade (or if there is a liquidity moment for him).

We complain he doesn’t front it, but he has done it two seasons in a row now.

Disclaimer: still don’t like him.

Any source for all this?

 

[rednwhitearmy]

Any source for all this?

No it’s almost entirely anecdotal; aside from the fact that the release clause payment was a lump sum not an instalment-base.

It’d be bad business to use cash reserves (i.e cash flow) to purchase a player of this size, in this market, in this pandemic. Taking a loan from Kroenke with low interest over 5-10 years makes much more sense for both parties.

 

[HairSprayGooners]

No it’s almost entirely anecdotal; aside from the fact that the release clause payment was a lump sum not an instalment-base.

It’d be bad business to use cash reserves (i.e cash flow) to purchase a player of this size, in this market, in this pandemic. Taking a loan from Kroenke with low interest over 5-10 years makes much more sense for both parties.

Partey's

 

[Manberg]

Realistically, Kroenke wasn’t going to loan £100m cash back to the business. Having said that, Would we have got both Aouar and Partey, considering Aouar would’ve been instalments over 4 years.

Still, to actually pay £45m CASH in one hit, implies that Kroenke did in fact loan the business money that they can pay off over a decade (or if there is a liquidity moment for him).

We complain he doesn’t front it, but he has done it two seasons in a row now.

Disclaimer: still don’t like him.

That £45m came from the club’s purse, not from Kroenke.

 

[HairSprayGooners]

That £45m came from the club’s purse, not from Kroenke.

You don't know that. It could've indirectly come from Kroenke through the refinancing of the loan.

 

[Makavelii]

Realistically, Kroenke wasn’t going to loan £100m cash back to the business. Having said that, Would we have got both Aouar and Partey, considering Aouar would’ve been instalments over 4 years.

Still, to actually pay £45m CASH in one hit, implies that Kroenke did in fact loan the business money that they can pay off over a decade (or if there is a liquidity moment for him).

We complain he doesn’t front it, but he has done it two seasons in a row now.

Disclaimer: still don’t like him.

How do you figure it was Kroenke’s money and not just regular debt from the bank?

 

[Manberg]

You don't know that. It could've indirectly come from Kroenke through the refinancing of the loan.

The money that became available through Kroenke’s refinancing of the loan was generated by the club’s old sponsorship deals, not Kroenke’s wallet.

 

[rednwhitearmy]

How do you figure it was Kroenke’s money and not just regular debt from the bank?

Because the club’s CFO is not a complete *****?

This was clearly a loan (of some kind - be it through a restructuring, or a simple deposit) that was beneficial to Kroenke personally, and for the club - all of which is a win-win-win for all...Parteys.

 

[Manberg]

Because the club’s CFO is not a complete *****?

This was clearly a loan (of some kind - be it through a restructuring, or a simple deposit) that was beneficial to Kroenke personally, and for the club - all of which is a win-win-win for all...Parteys.

Kroenke hasn’t put a penny in our transfer business. I’m willing to bet on it.

 

[HairSprayGooners]

Kroenke hasn’t put a penny in our transfer business. I’m willing to bet on it.

So you reckon we just magic'd £45M straight up cash out of thin air?

 

[Manberg]

So you reckon we just magic'd £45M straight up cash out of thin air?

We had a warchest of £150m that became available due to Kroenke restructuring the debt so I think that the board made £50m of that available and the rest is kept as insurance against losses due to covid. It’s not Kroenke’s money we’re spending though, it’s the club’s.

 

[rednwhitearmy]

Kroenke hasn’t put a penny in our transfer business. I’m willing to bet on it.

Well that’s just semantics. I’m more approaching this from a position of how businesses raise capital (without losing or restructuring shareholdings) from their owner. This is usually the way, explicitly if the owner holds such a majority, has the financial capabilities, and it is of benefit to the business (i.e his ultimate investment).

Obviously, this is a far cry from the Abramovich approach - but I still find it hard to believe that he just “gifts” money to the club, rather than it being a long-term loan with little to no interest.

 

[HairSprayGooners]

We had a warchest of £150m that became available due to Kroenke restructuring the debt so I think that the board made £50m of that available and the rest is kept as insurance against losses due to covid. It’s not Kroenke’s money we’re spending though, it’s the club’s.

You what we had £36M cash that was free'd up due to not needing it there to pay for the stadium loan. Not £150M...

 

[rednwhitearmy]

You what we had £36M cash that was free'd up due to not needing it there to pay for the stadium loan. Not £150M...

To continue your point here - the company needs to make a profit (shareholders control it after all). So they’re not spending profit to invest at this stage - the business is far too mature for this.

By getting a “loan” the debt can be spread out over a number of years, reducing its impact to the EBIT.

 

[Manberg]

You what we had £36M cash that was free'd up due to not needing it there to pay for the stadium loan. Not £150M...

The Emirates sponsorship deal was £150m. It was sidelined because it was needed to be in our accounts as a requirement of bank loans. Kroenke re-arranged those loans from the banks to his own accounts this season, meaning we could now spend that £150m.

 

[HairSprayGooners]

The Emirates sponsorship deal was £150m. It was sidelined because it was needed to be in our accounts as a requirement of bank loans. Kroenke re-arranged those loans from the banks to his own accounts this season, meaning we could now spend that £150m.

I don't think you understand how it worked to be honest.

 

[Maybe]

Kroenke hasn’t put a penny in our transfer business. I’m willing to bet on it.

It was never needed and I fully support him in that decision.

 

[squallman]

I'm not sure if there is a thread on this or where it's being discussed if at all. But, are we going to talk about the fact that we spunked 45m on a player yet fired 55 people?

How can we reconcile that?

I know people defended the sackings with excuses about Covid, loss revenue, stadium is closed etc etc.

But this isn't Arsenal. I get we're a business, the club will save every bit it can in wages. I just find it hard to stomach. Some of the people the club let go may not have found work yet and they worked for far less than the players do. We should have taken care of our own. Instead we cried broke, fired people then turned around and made big money signings in the transfer market.

 

[Macho]

They never cried broke, they streamlined as our operation was bloated and was due a reshuffle for a long time. Covid just hastened it. Not once has the club ever claimed it was broke.

Not the only institution to do this during these times, will not be the last. Many people on this forum who have worked for very profitable firms are victims of it too, it happens. Personally, I think people just like to cry/find it fun to sling mud.

Arsenal are a big club and are covered super in depth compared to other clubs.

We hire a set piece coach, we know about it,
Our mascot gets fired it’s front page news,
The salaries and inner workings of the squad are readily available if you know where to look,

No doubt Kronke took a heartless calculated approach after his internal review but it’s really not what the media make it seem.

You could only imagine the tears had we not made a marquee signing this summer, to a heartless business man maybe 45 mil is a small price to pay to get an entire fanbase off your back.

 

[gunner4lyfe]

They never cried broke, they streamlined as our operation was bloated and was due a reshuffle for a long time. Covid just hastened it. Not once has the club ever claimed it was broke.

Not the only institution to do this during these times, will not be the last. Many people on this forum who have worked for very profitable firms are victims of it too, it happens. Personally, I think people just like to cry/find it fun to sling mud.

Arsenal are a big club and are covered super in depth compared to other clubs.

We hire a set piece coach, we know about it,
Our mascot gets fired it’s front page news,
The salaries and inner workings of the squad are readily available if you know where to look,

No doubt Kronke took a heartless calculated approach after his internal review but it’s really not what the media make it seem.

You could only imagine the tears had we not made a marquee signing this summer, to a heartless business man maybe 45 mil is a small price to pay to get an entire fanbase off your back.

And with this we can close the thread.