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Afroman

Usmanov pleads for rights issue

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Interesting one herehttp://www.telegraph.co.uk/sport/football/...ghts-issue.html

Alishe, who owns 25 per cent of shares, has made the proposal and is keen to contribute financially to an idea that would be aimed at freeing up transfer funds for Arsene Wenger. It also represents a challenge to Stan Kroenke and Danny Fiszman, who are the two main shareholders on the board, to join him in investing more of their own money in the club.Usmanov has become concerned by the possibility of Arsenal falling further behind Manchester United, Liverpool and Chelsea, as well as the probable challenge next season from Manchester City. At present, the repayments on the club's debt are around £20 million per year and are comfortably serviced following the move to the Emirates Stadium.Arsenal chief executive Ivan Gazidis says the club is "open minded" and the proposal is due to be examined in greater detail at a board meeting this week. A key issue for directors would be whether a rights issue would fit with the club's long-term model of self-sustainability
Thoughts?Even tho the benzema/Ribery rumors sounds like bollox to me. This proposal could have aided the interest.
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This story is a couple of weeks old.The issue of making more shares available is an interesting one. It depends how u want the club to be run on whether u want to see this happen. Either go the way of a lot of clubs and whore ourselves out to the highest bidder, buy expensive players and have no more guarantee of success than what we have now. Or we carry on hopefully keeping a predominantly english board and get by on the money we generate ourselves and keep a bit of pride that we ain't like the rest.Either way i think usmanov will keep coming with ideas to try and win over the fans, all the time hoping he can eventually make takeover.

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rights issue dilutes the ownership from the small no. of cunts who call all the shots, to a wider number of peopletherefore brings in alot of money at the expense of wider controlso the board wont be in favourdunno bout gazidisfootballs changing as we all no if u wanna be a top 4 club in england u need fin backing from elsewhere imo

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Ivan, there was a Board Meeting last Thursday, which we’re sure many topics were discussed as usual. It has been reported in the media that the Board was due to discuss the pros and cons of some form of capital raising. Can you just explain the background to this and tell us anything you can about the Board’s conclusion? The Board, with its financial advisors Rothschild, considered thoroughly the proposal to use permanent equity capital to either pay down debt or to add to the Club’s spending in the transfer market. With regard to debt, the conclusion reached is that the Club has a very efficient capital structure with long-term debt on attractive interest rates. We can comfortably afford to meet the annual costs of this debt while at the same time generating surplus funds to invest in the Club. Using permanent capital to pay down debt would not, therefore, radically transform the annual cash flow of the Club. With regard to players, the Board decided not to issue permanent capital in the hopes of signing one or two players in an inflated transfer market. Instead, the focus continues to be on securing the services of talented young players we have on long-term contracts and making very selective acquisitions, only where a new signing will add real value to our already strong squad.We have developed some of the best young players in the world, as they showed by advancing to the last four in the Champions League. Simply spending money in the transfer market does not make a team or guarantee success. We have followed a slightly different route to most and have built, not bought, a team that has players who are highly sought after and valued by the biggest and best clubs in the world. But we intend to keep them!The Club, supported by the talents of Arsène Wenger, has embarked on a longer-term strategy of building its team rather than buying it. There’s a football graveyard of clubs that have not adhered to these principles and have unfortunately suffered the consequences. Our responsibility is to build the Club so that it can be successful, not just this season and next season, but also ten and even twenty years from now.
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Rather not go this route.This is share liquidation isn't it?

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BIGGood decision
Co-sign.Way I look at it is this, I'm not going to stop being an Arsenal supporter in 5-10 years time. I intend to be one till the day that I die so I'd rather Arsenal take an approach where we set ourselves up for long-term success. If this information was outlined to us clearly, when Ashburton Grove was built, then maybe we'd have seen our 'transitional' period as more than 3-4 seasons, but moreso something that would take 5-7 years & maybe we'd have more realistic expectations of what Arsenal would achieve.I hope we intend to emulate what Barcelona did, when they appointed Johan Cruyff & we see that type of change to the club.
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Ivan, there was a Board Meeting last Thursday, which we’re sure many topics were discussed as usual. It has been reported in the media that the Board was due to discuss the pros and cons of some form of capital raising. Can you just explain the background to this and tell us anything you can about the Board’s conclusion? The Board, with its financial advisors Rothschild, considered thoroughly the proposal to use permanent equity capital to either pay down debt or to add to the Club’s spending in the transfer market. With regard to debt, the conclusion reached is that the Club has a very efficient capital structure with long-term debt on attractive interest rates. We can comfortably afford to meet the annual costs of this debt while at the same time generating surplus funds to invest in the Club. Using permanent capital to pay down debt would not, therefore, radically transform the annual cash flow of the Club. With regard to players, the Board decided not to issue permanent capital in the hopes of signing one or two players in an inflated transfer market. Instead, the focus continues to be on securing the services of talented young players we have on long-term contracts and making very selective acquisitions, only where a new signing will add real value to our already strong squad.We have developed some of the best young players in the world, as they showed by advancing to the last four in the Champions League. Simply spending money in the transfer market does not make a team or guarantee success. We have followed a slightly different route to most and have built, not bought, a team that has players who are highly sought after and valued by the biggest and best clubs in the world. But we intend to keep them!The Club, supported by the talents of Arsène Wenger, has embarked on a longer-term strategy of building its team rather than buying it. There’s a football graveyard of clubs that have not adhered to these principles and have unfortunately suffered the consequences. Our responsibility is to build the Club so that it can be successful, not just this season and next season, but also ten and even twenty years from now.
typical
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^ Exactly...

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Alisher Usmanov criticises Arsenal strategy after rights issue rejectionThe Russian oligarch Alisher Usmanov has serious doubts over whether Arsenal will be able to compete financially in an inflated transfer market after seeing the rights issue he had proposed to the club's board rejected by directors.Usmanov's Red & White Holdings issued a statement last night insisting it would keep the situation "under close review" after the club's chief executive, Ivan Gazidis, confirmed the proposed rights issue – designed apparently to eat into the club's £400m debts and provide significant transfer funds – had been turned down. In the circumstances, confirmation that one of Arsenal's principal transfer targets, Fiorentina's Felipe Melo, is close to joining Juventus in a deal worth around £22m was distinctly untimely."Based on financial information that only they have, the board have informed us that they are confident they have adequate financial resources to support the manager to strengthen the squad, to weather the property downturn, to renegotiate the Highbury Square loan on good terms and to deal with the continuing difficult economic conditions," said Red & White Holdings. "We do not share their view but are prepared to give them the benefit of the doubt for the moment." However, we will keep the situation under close review and remain committed on behalf of interested parties in the club to ensure that there are sufficient financial resources for the club to succeed at the highest level and win major honours such as the Premiership or Champions League, while operating within a self-sustaining financial model."
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