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The continual downward spiral of Arsenal Holdings Finance may forced SIlent Stan to sell his declining investment
Discussion started by Merlion96 , 17 February, 2019 03:03
The continual downward spiral of Arsenal Holdings Finance may forced SIlent Stan to sell his declining investment
Merlion96 17 February, 2019 03:03
Arsenal fans have not been afraid to vent their frustrations towards Arsenal owner Stan Kroenke and the latest information will certainly not go down well amongst the supporters.
The mega-rich American, who also owns the Los Angeles Rams of the NFL and a number of other sports teams in north America, has been revealed by the Mirror to be the sixth-richest owner in world football.

Staggeringly, Kroenke’s worth is third in the Premier League, behind only oil-rich duo Manchester City and Chelsea, and is the fourth richest owner in Europe - with Juventus’ Agnelli family ranking ahead of him.

‘Silent Stan’ has a worth of £6.4bn, which doesn’t quite match up with the finances that Arsenal have had available to them recently - and the details get even worse for supporters.

That means Kroenke has more money than Paris Saint-Germain’s Nasser Al-Khelaifi, who has heavily financed the French champions with the signings of Neymar and Kylian Mbappe, while Arsenal did not have the finances to make any permanent signings in the January transfer window.

It also means that Kroenke has more money than the owners of European giants like Barcelona, Real Madrid, AC Milan and Bayern Munich, although the Gunners have not been able to rival those sorts of clubs in the transfer market.

[www.football.london]

‘Silent Stan’ has a worth of £6.4bn does not mean anything if they are in stocks of his sporting empire. Any decline in asset worth will reduce his worth.

Now, this does not reflect on growing cost for LA RAM new stadium at Inglewood, with latest estimate going beyond US$4-billion and is hitting nearer to US$5-billion now.

And with Silent Stan and his wife investing their own money to tune of US$1.6-billion into this Inglewood Project, their first instinct is how to crawl back this US$1.6-billion from their professional sport business to reimburse their investments?


If you think that our previous Emirates mortgage loan payment at about £20-million (now decline to about £12+ mil) per annum is bad, Silent Stan is paying a minimum of US$50-million per annum interest to the banks now.

Remember, for the final cost of £420-mil Emirates Debt, we borrow about £260-mil from the banks and turned it into a 20-year mortgage loan.

For that $5-billion Inglewood Stadium with $2.25-billion borrowing at paying $50-million per annum, and growing, interests? How will Silent Stan services this debt should there be a sudden Economy Downturn due to continual trade spat with China and the looming shutdown of US Government yet again?

And March BREXIT shaking the Global Economy and may force UK into a deep recession, forcing the next EPL Broadcasting Rights into a deep discount?

Compound it with an Arsenal FC leadership in crisis and appointing a dumbfcuk of a manager that is increasingly turning the fanbase against the club (yet again) and missing out the lucrative CL Cup next season, and the next, and the next, ad infinitum simply due to lack of investments to rebuild and clear away the debris left behind by Arsene Wenger?

No matter what the Kroenke Family proclaiming Arsenal Holdings is not for sale, it is just a smoke screen for a corporate predator trying to squeeze the maximum value out of a declining asset.

Step #1 - get 100% ownership and leverage on its assets to build up its cash reserves to finance Inglewood when the $5-Billion should suffer from cashflow problems.


Step #2 - start looking for a buyer willing to pay around US$3-billion for Arsenal Holdings.

The $5-Billion project is not good news for Arsenal fans. There is simply no spare changes to invest in the squad; all of them are swallowed by that $5-billion LA Rams Stadium.

The silver lining is of course that the longer Arsenal FC is out of Top-4, and compounded by declining commercial businesses, the better chance that Silent Stan will cut his losses and sell away this declining investments to reduce that $5-billion Inglewood Debt.

Matchday receipts?
Arsenal fans should boycott as many matches as possible and start to boycott Arsenal Fc merchandises and F&B to drive down this revenue streams … until we have a competitive team.


Read this May 2018 article:

Los Angeles Rams owner Stan Kroenke and his wife, Ann Walton Kroenke, are investing $1.6 billion in the team’s new Inglewood stadium, a project that now costs in excess of $4 billion. The information was provided by finance sources after banks met earlier this month to arrange a $2.25 billion loan for the construction.

The Kroenkes’ $1.6 billion investment is higher than the final price of the last NFL team to sell, the Buffalo Bills, which were bought by Terry and Kim Pegula for $1.4 billion in 2014. That underscores the allure of the L.A. market as well as the surging price of building the yet-to-be-named stadium.

“It is unprecedented,” one banker said of the investment. By comparison, after debt, the top equity infusions into stadiums from NFL team owners, such as the Cowboys’ Jerry Jones and Falcons’ Arthur Blank, have topped out at a few hundred million dollars. Kroenke also has agreed to a completion guarantee, the finance sources said, meaning he covers cost overruns and is responsible for the debt if the project does not open on time.

The $4.25 billion cost for the 298-acre site just four miles from LAX airport more than doubles the most expensive stadium ever built in the U.S., the $1.7 billion spent on MetLife Stadium in New Jersey. The cost also includes the value of a 6,000-seat amphitheater but not the planned retail and commercial development, as well as the building of a new NFL Network home that is expected to drive the total cost of the project close to $5 billion if not more, the finance sources said.

The price tag has skyrocketed since NFL owners first approved the stadium in January 2016, when Stan Kroenke estimated a price tag of $2.3 billion. It soon rose to $2.6 billion, and then in March got cited in media reports as $3 billion.

Part of the soaring cost is due to ensuring that the venue can withstand an earthquake, and the new projected figure includes what are known as soft costs, which cover items such as access roads and utilities and by themselves are budgeted at $850 million, the sources said.

The Rams declined to comment.

The sources asked for anonymity because the bank meeting on May 4 in L.A. was confidential. Kroenke met with the bankers at a reception after the meeting and a tour of the construction site.

JPMorgan Chase is leading the bank group, which includes Bank of America, Citigroup, US Bank, Citizens Bank, Sumitomo, GSP Capital, MUFG Bank and Fifth Third Bank. The minimum a bank is lending is $50 million and the maximum is $300 million, the sources said. The deal should close this spring.

JPMorgan declined to comment.

In a loan like this, the lead bank arranges for other lenders to buy into the debt as a way to spread the risk. That process is called syndication.

The stadium, scheduled to open in 2020, will house both the Rams and Chargers. The Rams are the primary equity partner in the stadium operating company, though the Chargers have a piece, too, and so will pay off a portion of the debt costs.

The loan’s pricing is 200 interest points over the floating rate index, the London Interbank Offered Rate. Last week, the three-month LIBOR was 2.35 percent, so if for example the Rams were paying interest last week, the rate would have been 4.35 percent.

The Rams are not borrowing the full $2.25 billion right away (they tap the credit as construction moves on) and that total amount will be reduced after personal seat license fees are used to pay down the debt. Nevertheless, interest alone could be well north of $50 million annually.

The deal includes a $183 million interest reserve, so the Rams can pay interest in coming years before all the revenue starts flowing, one of the finance sources said.

Of course, the stadium is expected to be a revenue-gushing machine. The loan requires pledges of revenue that is 1.75 times debt, the finance sources said. Including PSL sales, that suggests stadium revenue of close to $4 billion.

The stadium is to host not just the Chargers and Rams but concerts, other sports and events for the 2028 Summer Olympics. The 2022 Super Bowl also is scheduled for the stadium.

[www.bizjournals.com]



"The idea is to be more unpredictable every year and be more difficult for the opponents to stop and nullify what we want to do. That’s what we have now, especially at the back and in the midfield the options we have, to open up the spaces, we have many more options than we had last year.” Mikel Arteta

Re: The continual downward spiral of Arsenal Holdings Finance may forced SIlent Stan to sell his declining investment
Bergmars 17 February, 2019 13:20
Another war and peace Merl very interesting thanks mate


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