Is Daniel Ek gathering the Arsenal fans’ Dream Team?

Who Is Daniel Ek? By Dan

So is Daniel Ek genuinely interested in buying Arsenal or is this just a publicity stunt?

Okay Spotify has 155 million paying subscribers.

While though a week ago you may have heard of the streaming service, how many of you knew the name of the founder of the company.

Since Friday though Daniel EK has been in the headlines for claiming if Stan Kroenke wanted to sell, he would put his ‘hat in the ring’.

Most people serious about a deal worth billions tend not to announce it on Twitter, leading some to assume this is a PR stunt.

The business he created in 2006 is now valued at 8 billion so the Swede isn’t desperate for attention. Yet free publicity is free publicity, and it worked in terms of reminding me that I had not updated my card details on my Spotify account.

Is it a coincidence that the same time Mr EK is being presented as the Gunners saviour, he’s increasing the price of the Premium Family Package? What better way to hide negative headlines of hiking up costs during a pandemic, then by flirting with a football club.

I feel more confident he’s genuine with his intentions with the rumours that three Arsenal legends could be part of the consortium. As I write this Henry, Viera and Bergkamp have not denied the speculation.

 

Very similar to how Mark Zuckerberg created Facebook, Ek became a young entrepreneur by independently making his own business, involving his fellow students.

The 38-year-old also created the company Advertigo which he sold to Trade Doubler, and was a big part of the auction company Trader which was acquired by eBay. He’s also had CEO roles for U Torrent and Stardoll

As you can see his skills exist in the world of creating and marketing online and developing software. Nothing in his portfolio is from any kind of entertainment genre.

His national press do insist though that his fandom for the Gunners is very real, influenced by watching Anders Limpar at Highbury.

Arsenal’s net worth is estimated at 4.7 billion, half of Ek’s valuation.

He could always put his hand in the cookie jar and take money out of Spotify’s 7.88 billion revenue. In terms of business partners, picking three of the greatest players in our history would be a master stroke. He provides the majority of the funding while surrounding himself with football people.

How often do we talk about owners from abroad out of touch with the sport?

If he wanted too, Mr EK could stay in Sweden and leave the day to day running not just to players who understand the highest level, but who love the badge and understand the football that is part of our ethos

Bergkamp hinted during lockdown his family are ready to move back to London. Henry is living back in the UK. So the two men with statues outside the Emirates are well placed to take over, while EK and Viera can zoom call.)

Kroenke doesn’t need to sell. At 73, he’s never sold one of franchises and is not going to change his business model at this point in his life.

As noble as our protest was on Friday, I don’t think our owner was watching it. He’s already planned that we will be his sons inheritance, Josh Kroenke’s apprenticeship.

Still, a Gooner can dream right?

Be kind in the comments

Dan

41 Comments

  1. The Art of Teta says:

    I would be very worried about Ek. If he is worth 4.7 billion because that is the way his 16% stake in Spotify is worth. Although according to my math and the latest closing price of Spotify his stake is worth $9 billion.

    That is a very large amount of shares for him to sell in Spotify to finance his purchase price. I would think he would possibly be reluctant to sell more of his shares afterwards to support the club and buy the much needed new players. This would mean we replace one owner who wants Arsenal to run on a stand alone basis without “hand me outs” from the owner, by an other.

    1. Sean M says:

      Not the way takeovers work. You don’t simply subtract the cost from a person’s net worth but buyers negotiate with a handful of lenders – banks and private investors. His net worth (and success of Spotify) is only relevant inasmuch as getting lenders on board and negotiating decent interest rates.

      The product of those negotiations – whether part of his proposed business plan is to invest heavily or not – will determine transfer funds available. We simply don’t know enough to comment on that to speculate.

      1. Mark says:

        Wow..you broke that down nicely..much appreciated..

      2. The Art of Teta says:

        His net worth would need to be pledged for any loan to be made by a bank. And given the credit worthyness of his spotify shares he would need to pledge at least double the amount he would borrow. And face the risk of needing to add to his collatoral should the share value tumble.

        If I own 2 million in spotify shares a bank might lend me 500k against that but this would mean those shares are now “locked”. This would prevent me from freely trading them.

        More likely,

    2. siamois says:

      In 2020 Spotify lost 815M but the main reason is that they spent over a billion in marketing an amount they will not spend in 2021 also their year on year gross from 2019 is 17% their membership is now at 155M subscribers up by 11M from 2019 but more importantly their shares prices have treble and lastly as someone pointed it out we’re talking about a consortium!

  2. Wyoming says:

    Spotify is losing money really fast and is expected to do so for several years.
    Mr Kroenke will not sell until Arsenal is an established CL team as only then would he get a decent price. The club is worth at least 3 billion plus the new owner would have to take on 500m worth of debt including paying off the stadium until 2031. The fans will demand a 500 mill spend the first two seasons.
    Unlikely to happen for several years at the earliest.

    1. NY_Gunner says:

      @Wyoming
      RealTalk.
      Ek does get a good bit of publicity out of the whole thing for his struggling company though…

    2. siamois says:

      Please Wyoming just have a look at my comment above ok!

  3. gotanidea says:

    Acquiring Arsenal at 2 billion will be a win-win solution for both Spotify and Arsenal. Spotify can get the Gooners as their new customers and Arsenal will benefit from Spotify’s subscription model

    Spotify might not be as stable as the fossil fuel corporations. But I prefer Ek as the new sole owner of Arsenal, instead of the business oligarchs like Abramovich, Sheikh Mansour, MBS and Dangote

    1. siamois says:

      Nah if KSE were to sell they would ask for more than 2 billions for sure!Arsenal recent valuation is just under 2.5B add to that his investment in the club plus the expectation of a decent profit we could be speaking of a bid between 2.5 to 3Billions ti get Stan to sell.

      1. gotanidea says:

        Kroenke is crazy if he thinks someone will pay more than 2 billions in this difficult situation and he’s hemorrhaging money from Arsenal

  4. pires says:

    What’s astonishig with Arsenal fans is that they want money but refuses what brings money…..Super league was made to increase revenue of
    clubs and yet they bemoan about it.
    If you want money accept what goes with money

    1. Sean M says:

      So you’re saying killing a man for £100 is the same as working a day for it? You make no ethical distinction between the various means of acquiring money. Astonishing.

      1. Wyoming says:

        No he didn’t say anything like that.
        Your saying it’s ok to pay Ozil 350k p/w for not playing but complain about super league playing more top games to pay for the Ozils of this world.

      2. pires says:

        It has nothing to do with killing someone …..A super league isn’t a crime but a legal way to increase spending power for clubs that worth money…..if you want demagoguerie ans populism than you’r free

        1. Sean M says:

          The Super League was denounced by almost by the entirety of the football world as unethical. It’s also legal to promote plastic surgery and make up revenue by reminding girls and women that society values beauty; I’d hardly call it ethical.

          Has this entire debate passed you by?

          1. pires says:

            It’s not a debat but a mere populism
            …..Be careful for what you wich if you want to go forward as a club accept the rules of show business

        2. Tyford Kadzirange says:

          Why not us fans contribute a £1 each and get shares to help EK buy Kroenke out.

    2. Wyoming says:

      Arsenal in fact the entire Premier League is about greed.
      Highest ticket prices, players costing mega millions and being paid grotesque salaries. Clubs owned by billionaires.
      Clubs selling vastly overpriced merchandise charging ridiculous prices for food and beverage. And the quality of football never mind the results is so often dire.
      How can so much money be spent yet 1-0, 0-0, 0-1 are the most common score lines. Games should see at least 6 goals per game and at least 20 shots on target per teams. Yet all the sanctimonious protesters can do is moan about ESL.

  5. siamois says:

    Admin:could you please tell me why despite ticking the box to be notified of following comments/replies i never do?thanks.

  6. jon fox says:

    As ever DAN, a skilful setting out of the scenario, though with two rather huge financial bloomers I picked up immediately I read them. Firstly, my info is that Spotify is worth several times more than your “£8 billion” and I have seen £38 billion or more reported. Secondly, £4.7 billion is not half of Arsenals value but around twice(or slightly more) its value.
    But Ek’s intention , WHICH I PERSONALLY MUCH DOUBT, IS GENUINE, is a distinctly odd way to go about announcing it. I have seen no multi billionaire EVER announce his intention to bid, on Twitter, though I also recognise that by itself does not automatically disqualify him from being serious.

    But there are several plausible explanations why a very rich billionaire might wish to give his business world wide publicity without direct spending. I trust all the brighter fans among us can all see that would be a REAL reason to publicise such an “ahem” intention to buy!

    This still young business man certainly knows how to get fan support onside. BUT one very serious factor remains and it is this: our fans are screaming for more and more player investment at a time when all owners of huge clubs are undoubtedly losing money.

    That , to my mind, is not going to lead to a “queue” of Arsenal supporting billionaires all trying to outbId each other to buy our club.

    I will be sending in my own article on JA covering my own thoughts on our most likely future ownership model, in the wake of this newsworthy last 9 days and will surprise and also, doubtless, annoy some of you with my straight talking comments which will also cover how we fans behave.

    This is a point of view that I have held for decades already and which is now becoming more and more evident each passing week, not only among Arsenal fans but fans of all top level clubs, though some more than others. It will be worth reading , my friends!
    Finally, congrats to the excellent DAN once again . I always await his articles with eagerness and value his honesty, whether or not I agree with him. Sometimes I do not, but that matters not at all.

    1. Sean says:

      Looking forward to it Jon

      1. jon fox says:

        Cheers SEAN! All I hope to do is to make at least some of our wonderful fans think really hard what they actually want and to consider how we ourselves are also to blame for having thrlikes of Kroenke and theother ghastly billionaires owning us.
        Essentially Sean, I believe that in life you live to reap what you have sown and many of our seeds were not wholesome ones. I INTEND TO EXPLAIN HOW , WHY AND WHAT WE CAN AND SHOULD DO NEXT.

        1. pires says:

          Jon
          Arsenal fans want more and more money spent on players but refuses a super league that guarntee theme more income….We have to be ruthless and dont delude ourselves if we want to improve our club…..If Premier League is having worldwide support it’s because of the top six not Fulham and West Brom

    2. Tas says:

      John= I have seen no multi billionaire EVER announce his intention to bid, on Twitter,

      What’s the difference between Twitter or announcing it on media like Aliko Dangote, Richard Branson was famous for showing his interest on a company’s to the media,( mainly for free advertising )

      I sure PwC, KPMG, Deloitte to name a few finance companies are making inquiries for secret buyers for Arsenal before ESL scenario and after.

      1. jon fox says:

        Tas My whole point, had you understood it properly and thought about what I said, was that NO billionaire announces it in public by ANY medium, UNTIL it is completed.

        There will always be a rare exception but my point remains a sound one. Twitter is irrelevant, as is any other media platform. It is when not on which medium it is announced that I waas writing but WHEN, NOT WHERE!

        1. Tas says:

          Jon Im not disagreeing with you, I wanted to make a point to most on here about likes of Aliko Dangote, Daniel Ek, mostly they are all talk and no action, take Ek’s company Spotify last year they spent a fortune on advertising and by Ek saying he would like to purchase Arsenal FC makes world wide News which makes him clever man who just created free advertising world wide, I have read somewhere a while back that there is always interest to buy Arsenal from anonymous Billionaires, those people quite rightly almost always anonymous unless they are successful like the Kroenke’s, we all know Chelsea owner Abramovich wanted to buy Arsenal firs but was told by his advisers that Arsenal was not for sale so he purchased Chelsea instead I think it was the same with City owners

          1. jon fox says:

            TAS, Good then to see that you agree with me in thinking that some billionaires are keener on creating publicity for their company and thus helping it, than they are in REALLY buying Arsenal. I just do not seriously believe Ek is serious or even wealthy enough to make a serious bid, EVEN IF(WHICH I MUCH DOUBT) HE REALLY WANTS TO.
            HE IS USING THIERRY DENNIS AND PATRICK for publicity, IMO.

    3. Dan says:

      Cheers jon

  7. Tactical Gunner says:

    So every fan of a top club wants to have the very best of player cause its so easy on video games, whereas in reality, agents, ffp, coach desire, team history, player’ chemistry, player’s personal issue ( family, residence, religion), league rules.. etc
    all this don’t reflect on video games..
    want to understand more on what a club feels like, go outside and work with real humans.. Sponsor a dance crew, 5-a-side team.. Appoint people in various capacity and feel the thrill.. Deal with real life ego’ backed up with contracts.. The come and report here.. Thanks

  8. Sean says:

    It doesnt matter the Value of the club it matters how much Stan wants for Arsenal. He could be asking for £2.5b when we are worth£1.8- £2b & why not? He had to spend money to get all those shares and buy out Usmanov.

    He will not sell in my opinion for anything less than £2.5b and he intends to leave Arsenal to Josh, who is now taking on the Q&As as the owner. We will never hear from Stan again trust me… itll be all Josh from here on & I doubt he will want to sell at all.

    Mummy or Daddy can give him funds all day everyday with their chain of Walmarts & Sports Franchises, to which they have never sold a share of any.

    Thierry, Denis & Patrick have to get the fans behind this and get to these protests etc….

    Fans then need to stop buying Merch and season renewals but then when they do that there is always some rich person who will buy that ticket because they can & a make the Emirates even more quiet than it was before the pandemic.

    We are too expensive all round also.
    We are in some debt
    Can Ek do all this?

    I dunno and doubt all of this but hope to be true.

  9. Nickerless Bender says:

    What’s the difference between Amazon music and Spotify. I have a AM family account but people keep telling me to get a Spotify subscription as it is ‘better. So what is the difference?

  10. Nickerless Bender says:

    I can’t see this happening with a potential take over and believe it is all done in jest.

    What I do see is one of the three legends mentioned returning to Arsenal to save face with the fans as let’s face it, would you p!ss on the Kronkes if they were on fire? I think 99.9% of Arsenal fans would say that they wouldn’t.

  11. ozziegunner says:

    jon, the “elephant in the room” is the UK Government’s investigation into football ownership arising from the failed ESL push. It will be interesting to see how “earnest” the review is and what recommendations for the Government to action come out of it.
    At the moment this is a great “unknown”, as far as contingencies for owners are concerned.

    1. jon fox says:

      Ozzie you rightly point out the government legislation. BUT FAR FROM BEING THE ELEPHANT IN THE ROOM , IT IS OUR PRIME HOPE OF CHANGE TO A MORAL RUNNING OF PREM FOOTBALL.
      We fans all need to cease being so spoiled by Wengers glory decade that we constantly demand it as the norm. That cannot ever be the norm and we have no right to expect it again anytime soon. We all need to be far more realistic in our expectations and demands. So do other top clubs fans who are doing less well than before.

      1. ozziegunner says:

        👍 jon, by “elephant in the room” I refer to the impact government legislation may have on club valuations and shareholdings, eg the German model of supporters owning 50+1%.
        Like you I hope that the UK Government does implement “a change to a moral running of Premier League football and moves it back to a people’s game where the people on the terraces or watching on TV have a greater affinity with the players and vice versa.

  12. Samuel Akinsola Adebosin says:

    Kroenke has said it and reiterated it again at many occasions that he has no any intentions whatsoever to sell his Arsenal FC. But has the good intention to keep the club running very well as a business investment sporting enterprise.

    And according to him as reported in the media leave his sporting business enterprise Arsenal FC behind for his family to inherit it among other sporting business enterprises that he have after he has pass on to the life yonder.

    Therefore. In my own thinking, Kroenke isn’t going to sell his Arsenal FC to any business investment person, or consortium to by it under any pressure from any individual business investment person or group of business investment persons exerting pressure on him to sell.

    Save, if he’s forced to sell by circumstances that are beyond his control to sell. Say, by a sustained mass protest by the Gooners against him to sell. But this will be illegal if the Gooners sustain a mass protest against him to force him to sell.

    New changes done to the Law and regulations governing and guiding owing PL clubs by any foreign sporting investors, done by the PL/ FA/Govt that are not business friendly to Stan Kroenke could force him to sell his Arsenal FC. But will that be done that could make him to sell his Arsenal? If these changes are done and implemented, Arsenal will not be the only big club affected but 4 othe PL big club sides who are owned by foreign sporting investors that didn’t include Tottenham Hs as I’ve read.

  13. The-Real-Vieira-Lynn-4ever says:

    Sadly, the only way Kroenke would sell Arsenal is if the fans came together and refused to put any money into the club’s coffers visa vie future season tickets, advanced ticket sales, club merchandise and club-specific cable packages…if we were able to pile on now when things are already financially problematic we could “artificially” drive down the club’s market valuation…this kind of commitment would likewise make it glaringly clear to Kroenke that the fans were willing to do whatever it took to force his hand…not to mention, it would make a statement to any future owner that our fanbase isn’t willing to be the financial sidepiece and/or plaything for some Billionaire owner who has no interest in winning trophies…in many ways, this would be our version of the Spirit of Shankley group that were pivotal in ridding Pool of their former American owners

    personally, right now, I don’t think Kroenke would sell for less than somewhere between 3-3.5B, especially after the LA Clippers were sold for over 2B in recent years…without our assistance this price point would severely limit potential viable candidates and make it exceedingly difficult for any future owner to come in and invest properly…of course it’s a longshot, but it might be the best chance we have to move on from our absentee landlord

  14. Stephanie says:

    Unlikely that he will succeed

  15. Samuel Akinsola Adebosin says:

    Kroenke has said it and reiterated it again at many occasions that he has no any intentions whatsoever to sell his Arsenal FC. But has the good intention to keep the club running very well as a solid business investment sporting enterprise.

    And according to him as reported in the media leave his sporting business enterprise Arsenal FC behind for his family to inherit it among other sporting business enterprises that he have after he has passed on to the life yonder.

    Therefore. In my own thinking, Kroenke isn’t going to sell his Arsenal FC to any business investment person, or consortium to buy it under any pressure from any individual business investment person or group of business investment persons exerting pressure on him to sell.

    Save, if he’s forced to sell by circumstances that are beyond his contro forcing him to sell. Say, by a sustained mass protest by the Gooners against him to sell. But this will be illegal if the Gooners maintain a sustain mass protest against him to force him to sell.

    New changes done to the Law and regulations governing, guiding and regulating owing PL clubs by any foreign sporting investors, done by the PL/ FA/Govt that are not business friendly to Stan Kroenke tp continue operate could force him to sell his Arsenal FC. But will that be done that could make him to sell his Arsenal? If these changes are done and implemented, Arsenal will not be the only big club affected but 4 othe PL big club sides who are owned by foreign sporting investors that didn’t include Tottenham Hs as I’ve read.

    1. John says:

      He has released a statement saying he is not going to sell. We are stuck with him.

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