DOES MONEY BUY SUCCESS? A LOOK AT THE TOP SIX CLUBS SINCE THE RUSSIAN ROUBLE AND THE OIL RICH COUNTRY ARRIVED VIA CHELSEA AND MANCHESTER CITY. by Ken1945
As we all know, having a $10 billion dollar owner like Stan Kroenke, doesn’t automatically bring success, if The Arsenal is not seen as a passion in his life.
If we also look at the owners of Manchester United, the Glazer family, reportedly worth $4.7 billion dollars, we seen that their ownership has seen this once mighty club fall down the pecking order, as has ours.
In the early part of the 20th century, The Arsenal and Man United would lock horns and win all the major trophies in the English Premier League between them, but since 2003, when Abramovich purchased Chelsea from Ken Bates, their stranglehold has disappeared.
Since then, the level playing field has become as uneven as our pot-ridden road in the UK.
Here are the current Premier league billionaire owners, with their reported wealth (businessinsider.com) in American dollars (sorry you can convert to £’s if you desire).
Everton……. Farhad Moshiri……..$1.9 billion…Record signing $53.8
Liverpool….John Henry……………$2.7 billion…Record signing $92.2
Newcastle….Mike Ashley………….$2.9 billion…Record signing $47.9
C. Palace….Joshua Harris…………$3.5 billion…Record signing $34.0
Man United. Glazer Family………..$4.7 billion…Record signing $114.3
Tottenham…Joe Lewis………………$5.0 billion…Record signing $65.3
Leicester……Srivaddhanaprabha…$5.9 billion…Record signing $49.0
Aston Villa.Nassef Sawiris……….$6.4 billion…Record signing $27.2
Wolves……..Guo Guangcheng…. $6.7 billion…Record signing $41.2
Arsenal…….Stan Kroenke………… $8.7 billion…Record signing $87.1
Chelsea…….Roman Abramovich. $12.4 billion. Record signing $87.1
Man City….Sheikh Mansour……..$30.0 billion. Record signing $82.7
Aliko Dangote, self-confessed Arsenal fans reported worth? $7.4 billion (says Forbes in real time, which has probably been reduced since the virus began, as have all the above figures).
Some real wealth in there and surprising to realise just how these billionaires seem to believe football clubs are a good investment – unless they had so much money, they thought it was just a “nice to have” accessory!!!
Now we know that this coronavirus is not just a small blip, but a real worldwide life changer, what does the future hold for these clubs and their investors?
Well, in my opinion, the twelve clubs listed above, will survive whatever this virus throws at the human race, presuming an antidote will be found.
Too much investment has already been outlaid by these 12 Just Men, for them to walk away…and what other billionaire would even think of buying out any of these clubs, when the outlays of salaries, tied to legal contracts, the threat of media companies demanding their money back for coverage unseen and sponsors who have seen their investments decimated?
Interestingly, one man who comes to mind, is the billionaire Aliko Dangote and his reported sterling value of 6 billion that converts to $7.4 billion dollars.
As late as 13th January this year, he promised to buy out Kroenke, once his current $20 billion worth of projects are completed sometime in 2021.
If the sports investments that Kroenke has made in America drain his fortune enough to make him consider selling his only sports investment outside of the USA (as far as I can determine), would this give Dangote the opportunity to buy him out?
I have no real idea about the man himself, having only read what is out there in the media, but if this does give him the opportunity to realise his dream, would he be prepared to take the chance and would we, as The Arsenal, benefit?
The coronavirus has changed the world, let alone football, for ever and I can only hope that it hasn’t changed Dangote’s mind.
He seems to be the only realistic person who is capable of getting this current owner out of our club and, if it happens, just imagine how it could/would transform the club.
His wealth dwarfs every other one on the list (except for City’s sheikh and his country’s oil reserves) and, with sensible planning from our board, we could be transformed while staying inside the governing bodies rules.
In this time of worldwide closure, football is a minor subject of course, but to think that Kroenke might just depart from our club is a dream come true.
Take care and be safe.
ken1945
i just hope Kroenke hit and forced to sell for sure
Bravo Ken! A well researched article from what you say about your info sources. I personally think the current PREM clubs most at risk of going bust are Burnley, Bournenouth and Norwich with West Ham not far behind.
The problem any big club would be purchaser has in his attempt to buy out, is that the seller will be unwilling to take a huge drop in his own original purchase price and the buyer will be unwilling to pay over the odds in the much reduced common climate.
I see as more likely than anything else, for the “safe” clubs, like us, a bunkering down in spending all round, whilst hoping the world economy will slowly get back to its previous stage. That is impossible to predict as to if and when it will happen. I forecast an almost total end of huge price transfers in and out and a lot of loan deals, cut price deals and shorter contracts all round.
When the dust settles and football eventually resumes, but even before it resumes, the market forces will force all players to vastly reduce their salaries if they wish to stay in the game at all. Simply put, the game cannot afford to pay current top level contracts en masse. Nor those lower level clubs either.
This player versus clubs cat and mouse game of poker will go on for some time but ULTIMATELY, the key factor is that fans support clubs over and above ANY player, no matter how brilliant that player be. NO player can stand against the market and against that fact. Thus, the clubs collectively -and they will in the end act collectively- hold the ace card against the players and against their unions and also their agents, whose own power will reduce.
Fan appetite for the game will remain huge but ability, even willingness, to pay current entry prices will reduce in general. Dependent on how fans see the players, as allies in trying to save the game we all love,OR if fans see the players as being obstructive and greedy, will determine how much the billions of football fans remain in love with the game.
There will be massive changes in attitudes against gross greed, esp after witnessing the TRUE heroes in society, who are NHS workers and ordinary folk doing all they can on low ,often pitiful wages, to keep the ecomomy functioning at all successfully.
Already, as of right now, today, there has been a huge backlash against greed and selfishness and as people realise the tsunami of collective power we have, to destroy greed and regain morality, their will be more and still more determination to use it against greedy CORPORATES and greedy owners , also those players considered greedy and against the people. IN SHORT A SOCIAL REVOLUTION IS TAKING PLACE EACH DAY AND NIGHT, AS THIS DISEASE CONTINUES TO RAGE AND KILL PEOPLE.
We will all pay a huge price but in the end, some long way down the road, we should seriously hope for less greed, more fan power, better fan treatment and reduced entry prices. THE BOTTOM LINE IS that without fans in their millions, there Is no pro game and that knowledge, little by little, will become clear to all. REASON TO HOPE THEN, MY FRIENDS!
On KENS and presumably most of us too, hopes for Dangote to buy out KROENKE, much will depend on how his refinery goes, how much it increases DANGOTES worth, the timing of it all and how much the shrinking economy damages and hurts KROENKE financially. All that is difficult to predict though, both as to if and when he MAY make a serious bid to rescue us from KROENKES malign clutches.
It will be a very difficult task for Dangote but it’s a possibility. Knowing little knowledge from my observation, Dangote is a great business man and a very determined one, the greatest business man in Africa.
But I am very sure Kroenke will not let go very easily after fighting so hard to get total control from Usmanov.
Also knowing the fact that it’s a white mans world, I am not sure a Nigerian will be allowed to own such a huge business in London.
Well the world is changing so Hopefully Dangote’s passion for the club will get him his desire
SJ, I wonder just who will be the person or people you think may “not allow a Nigerian” to own Arsenal”. I do not agree with you on THAT POINT being of any relevance at all. Money talks, not the colour of skin or nationality. Very few multi billionires world wide are ethical to any degree and one will either sell or not sell to another, based ONLY on his own power and wealth. Other than THAT point, your post was a good one.
Article that only skims the surface. Gross, and Net spend over the last decade would have been interesting to see.
Would love to see someone buy out Kroenke, but it will not be happening, for a long time at least. Kroenke only recently took 100% control, so I cannot imagine he’ll be wanting to give that up anytime soon.
TMJW, I’m sure we all look forward to you putting more “meat”. to this article, when we read your in depth analysis of the gross and nett spend over the last decade.
Good and called for reply KEN! A clear case of jealousy at your writing ability, it looks like to me.
Well from my observation, I can see very few non white coaches in the game of football, also very few if any at all African that owns any club in Europe.
So I believe there is a possibility that the powers that be can stop an African from owning a club in London
And would you care to enlighten us all as to exactly who or what are those “powers that be”? I see no other power on earth that will be able to prevent one multi billionaire sell to another one,if he wishes!
Interesting figures. Who is the $114.3m guy? Pogba? A lot of money for a “backbencher”. If the world economy now will turn down I think it be to the better for football players. Okey, they are greedy brats who want as much money as possible, but many of them seem to be unable to deliver on the pitch when they are to well payed. You can’t drive a Ferrari and score goals at the same time. Some of the best players seem to suffer from… can I say “performance anxiety”? Pogba is one of those guys. Pepé is another. And Harry Maguire. Many players that cost £50m or more become poor performers. So a depression will be good for the sport. And if a heavy deflation arrived in time to the transfer window opens in June maybe mr Kroenke can buy us the guys we want to be back on top (Upa, Partey, Mbappe, Lewandowski). All four for the sum of, let’s say, £40m. What a wonderful world this would be (Peter Noone, 1965?).
Hmm I think you will find it was Herman Hermits (Peter Noone was the singer in the band), but of course Sam Cooke sang it first back in 1959, and of course Louis Armstrong made it into a classic—-
Admirable knowledge Pat and your knowledge genuinely surprises me. Perhaps I could run one of my showbiz quizzes, specifically for those in the know, like you. Sadly, I find only a few of my theatre and musical friends know much about football and vice versa too. Not always of course but certainly usually. ODD REALLY BECAUSE I HAVE ALWAYS THOUGHT FOOTBALL IS PLAYED ON A STAGE, FIGURATIVELY SPEAKING!
In principle the article raises interesting points:
1) Will Kroenke be hit hard enough, to be willing/forced to sell
2) Is there a realistic buyer in Dangote (or anyone else)?
3) Would a new owner be good for Arsenal?
As for 1)
The net worth of Kroenke must have been slashed dramatically, and it is possibly in free fall at the moment. As is Arsenal’s by the way. Will Kroenke have the strength to keep Arsenal afloat in a few months time, if need be? As the article rightly points out, he wouldn’t want to let go of the club at a time, where the value of the club is at rock bottom . What will the fairplay rules allow, and will they be relaxed in the current situation?
As for 2) and 3) the questions are possibly even more open.
Well done @ken1945
For me I think Aliko Dangote is not close to making a takeover bid. BUT whatever and whosoever comes by this way, will need an economic and business savvy expert, who is an excellent football person, to fashion a Sustainable Strategic Business Model for The Arsenal in sync with rolling plan from M. Arteta covering, say 2.5 to 3 years per time. By the antecedent of these guys currently running the club, they are at best in Administration, they have been yes-men, who took instructions from bosses.
Noting that football is big, not small, very big business, investor wants, and definitely deserve profit, so whether Kroenke, Dangote, the approach currently is not okay yet. Am not afraid to say, though they replaced AW with 3 people, they are all combined are still short on the business of Football.
A.P. I learned about Sam Cooke later. But Herman’s Hermits was one of my older sisters favorites, and I liked all bands she liked. I don’t know why, we were never that close. I only remember all the times when she scared and beat me. Still, I liked Peter Noone because she did. And Hollies. Hollies was the pride of Manchester. Compared with them manu is absolutely nuthin’. Bobby Charlton, Denis Law, George Best… Pah! But Alan Clarke and Graham Nash, that was something.
Ken, I’m in agreement with you and your figures. Just want to add that we need proper scouts or Mikel needs to identify his targets. In the recent past, Sanchez & Auba hit the ground running and justified their value, Martenelli looks good too so will Guendozi. Rest of the signings look like money wasted – started from Chambers from Southampton, to Perez (from Deportivo!!) to Xhaka. Hope these were the last and future we get value for the money invested. Sometimes money doesn’t get the best from the players – Maguire, Pogba , our own Pepe
My view is that Dangote is an oil magnet. Countries, governments and people will always need oil what ever is happening in the world.
On the other hand Kroenke’s sole business is sport. With all of the sports ventures he owns postponed indefinitely he must be taking a huge hit.
I suppose with Kroenke it boils down to whether he will dig in and ride out this storm or sell off some of his sporting ventures to recoup some off his losses.
NWL Dan, Your final sentence took my eye esp, though I agree with almost all your post as well. I don’t however think that absolutely all Kroenkes fortune is invested in sports clubs. Some of is it is real estate; remember his ranch cost three quarters of a billion dollars. However – and though there is a caveat – we could seriously hope that were he needing to sell one one of his sports franchises to shore up and keep the others, then he would surely think seriously about selling Arsenal.
That caveat is that he would not wish to sell below what he paid and this is where, HOPEFULLY, Dangote may come in, perhaps a year or two from now when his refinery is up and running. Fingers crossed!
Umm ithink you will find that Asda and Walmart are extremely busy at the mo and Kroenke is married to one of the owners. Hi won’t get desperate I’m afraid
PAT SURELY NONE OF US CAN KNOW EXACTLY HOW MUCH KROENKE WILL BE AFFCTED BY THIS CRISIS. But surely he will be affected to an extent as will all businesses with few exceptions. Even supermarkets, though selling plenty right now, will be bound to be adversely affected when the world economy means multi millions of folk arepoorer and have less spending power. Kroenke DOES have a large majority ofhis fortune invested in sports clubs which right now are disastrous loss makers. And the share value in each will markedly decline, more to the point.
It is total asset share price that matters to such as Kroenke more than merely gross income , though both are important. When you claim “he won’t get desperate” you have no firm evidence for that opinion that I can detect, while I do have evidence for my contrary opinion.
For clarity: Aston Villa are owned by an investment group (NSWE) which is run by Nassef Sawiris, a member of the Sawiris Family (worth a combined $34B dollars) AND New York hedge fund billionaire Wes Edens (estimates for his wealth range from 1.6B-4.2B dollars).
I think look at the two prominent kronke and dangote, they were big businessman. But can we look at this issue in this perspective. Most of kronke business is sports, just like what is currently happinng all over the world sports closed for now. In other way, dangote deals with oil which this global current situation has nothing to hack down oil. Under kronke so far what are the achievement of arsenal up to date. I think arsenal need new brand so if dangote can come in and see how he can demonstrate the passion he has for the club he had been supporting.