Stan Kroenke’s £730m Arsenal takeover moves step closer as board declare him a ‘safe custodian’

Stan Kroenke

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Arsenal’s board of directors have branded potential owner Stan Kroenke as a ‘safe custodian’ after the American submitted his takeover offer.

The tycoon handed over formal documents on Friday highlighting the strategy for his proposed £730 million buyout of Arsenal football club, valuing shares at £11,750, after he raised his stake in the north London side to 63 per cent.

The American’s company, Kroenke Sports Enterprise (KSE), now have a controlling hand over affairs within the Gunners’ parent company, but there is still a lot of work to be done before the May 27 deadline.

It is still unclear whether Red and White Holdings – financed by Uzbek billionaire Alisher Usmanov – will sell their shares, amounting to 27% of the club, and the Arsenal Supporters Trust have also urged the minority shareholders not to sell, believing that the London side should not be owned by one individual alone.

Kroenke’s company have already found success with sporting teams in the United States, such as the St Louis Rams NFL side, the Denver Nuggets NBA franchise, NHL unit Colorado Avalanche and Major League Soccer’s current champions, the Colorado Rapids.

In a letter from the chairman to the shareholders, the independent directors outlined their support for Kroenke’s ideas for the club within his 64-page proposal document, which state that he will not load debt onto the team.

“Given his involvement with Arsenal since 2007, and the confirmations he has given to the board of Arsenal as set out in this document, we are confident that Mr Kroenke will be a safe custodian of Arsenal’s future,” the letter read.

“Mr Kroenke’s experience at Arsenal and his relationships with the Arsenal board and management team have given him first-hand knowledge of the club and an understanding of the underlying business.

“He has stated that he is focused on maintaining Arsenal’s position as a top-flight football club, and intends to use his experience to help Arsenal continue to grow its global appeal and fanbase, and to enjoy further success on the pitch.

“The Arsenal independent directors note, in particular, KSE’s and Mr Kroenke’s confirmation that the offer will not be funded by way of any debt finance (bank loans, payment in kind loans or other debt or quasi-debt interest bearing obligations) for which the payment of interest on, repayment of, or security for any liability (contingent or otherwise) will depend on the business of Arsenal.”