Kroenke’s never ending profits and why he wants the Super league by Dan
Stan Kroenke is not a great football owner but that doesn’t mean he’s not a world class businessman. Don’t ever confuse the two.
The day he dies, his legacy will be of a genius who knew how to make serious money in the sporting market.
I read an article the other day where a couple of Gooners didn’t understand why the word ‘hate’ was too strong. Take our emotion out of the subject and the man hasn’t broken any laws.
Every human has a right to (legally) attempt to make as much money as possible and no one has an entitlement to tell another person how they must spend their wealth.
Forbes this week released the top 50 worldwide sport ‘franchises’ based on value. Arsenal are placed in 38th on the list.
So when the Gunners yet again this summer pretend to be poor just remember that there are only 37 other sports team worth more than us in the entire world!
With a lot of research, I found out a few more eye watering stats.
In 2011 Arsenal were bought (in terms of shares brought over a period of time) for 1.1 billion. They are currently valued at 2.3 billion.
In the last 5 years that is a rise in value of 39 percent. That’s incredible when you think what’s happened on and off the pitch in the last 5 years.
We have fallen out of the Champions League and for over a year have been without match day revenue. You could go as far as saying the last decade has been one of the worst in our history, yet our value has increased. Which makes you understand why our business model no longer cares about winning titles or where we finish.
Yet the more successful on the pitch we are, would make us even more valuable, but when an asset is already worth billions that’s enough to be content with.
The Club has almost doubled in value since the Kroenke Family first took power on our board. They could now attempt to invest in the team to make a greater return or sell up.
Daniel Ek has confirmed he has the money to launch a bid between 1.8 – 2 billion. Either way the Kroenke’s are going to make a huge profit on an investment they have zero connection to.
Living in America they are away from the scrutiny of our fanbase, but you do wonder if you could double your money for something you’re not interested in why wouldn’t you?
The argument is the example of The LA Rams.
You know what I said about Mr. Kroenke being a world class businessman? He’s only one of two individuals to own two of the most 38 valuable sports teams in the world with Forbes ranking them 13th on the list.
When he took full control of the then Saint Louis Rams, he paid 750 million. Their valuation in 2021 is 4 billion!
The only other company to be represented twice in the top 38 are John Henry and Tom Werner, thanks to the Boston Red Sox and Liverpool.
Their honours include a Premiership, Champions League and 5 World Series, proving it’s possible to make a fortune and win at the same time.
Our owner has perfected a portfolio of increasing value no matter how unsuccessful his teams or customer backlash.
It was in the NFL where the nickname ‘Silent Stan’ emerged due to his refusal to answer allegations that he misled Rams fans, promising he would never move the Rams from their ‘home’ (which is why we don’t ever want to join a breakaway league).
Of the top 38 most valuable teams in the world 29 have won their main Championship under current ownership. Of the 9 who haven’t 2 are owned by Stan Kroenke.
Under the Kroenke Banner, the Rams did end a 14-year drought for a division title and play-off appearance but they lost their first Super Bowl appearance in 35 years 13-3 to the Patriots.
If you count regional or division titles, then Arsenal are the only team in the top 38 most valuable teams not to win a title since their last takeover. Either way the Gunners are the odd ones out.
Of the 9 teams mentioned not to win their main prize since their last owner, one plays in the NBA the other 7 in the NFL.
Arsenal are the only European franchise out of the 9.
If we extend the list to the 50 most valuable teams, PSG enter the conversation at 43rd.
Meaning out of the 10 football teams in this list Arsenal are the only ones not to win their domestic title under their current regime (Real Madrid, Barcelona, Man United, Bayern Munich, Liverpool, Chelsea, Man City are also in top 38).
Football is the only sport outside of America on this top 50 list with the 10 clubs representing UEFA. The other 40 teams either compete in the MLB, NFL or NBA.
If ever you want to know why the Premiership’s ‘big six’ owners wanted to create a Super League, Forbes table shows why.
Of the 12 who signed up originally, 8 are on this list. Yet they are surrounded by three brands which commercially make more money.
The NFL, NBA and MLB each have one of the top 3 most valuable clubs in the world. That’s why the Super League was going to try and copy their pyramid model of zero relegation and play offs.
Of England’s big six, 4 are owned by Americans who would have grown up with sport looking this way. Kroenke owns a side in the NBA and NFL, Henry and Warner make money in the MLB and the Glazers own the Tampa Bay Buccaneers from the NFL.
So not just did these men grow up watching these sports they have evidence that serious money can be made by a Super League.
That’s why the UK fans who followed their clubs for years were never the target audience.
This will never be admitted but long term, I believe that Arsenal would have been moved from London and football (soccer) run under the NBA format.
In conclusion, don’t let anyone tell you that if Stan Kroenke wanted to, he couldn’t make Arsenal great again.
When people say, ‘remember how Leeds slid down the table’. Leeds was a publicly traded company who ran out of money.
Arsenal are owned by a man who has two clubs in the top 38 most valuable in the world, worth over 6 billion. That’s before you include the Denver Nuggets and the other franchises he owns…
Be kind in the Comments
Dan