Arsenal Investor Alisher Usmanov Offers To Pay Off Chunk Of Debt

Usmanov Believes Arsenal's $482.7M Debt Is A Barrier To Club's Ambitions

EPL club Arsenal investor Alisher Usmanov, the team's second-largest shareholder, has offered to "pay off a significant chunk of the club's [US$482.7M] debt to create fresh transfer funds," according to Jeremy Wilson of the London TELEGRAPH. Usmanov believes that the "need to service such significant levels of debt is a barrier to the club's ambitions." Net interest costs on the debt last year accounted for US$25.8M, while "repaying both the interest and capital on the Emirates Stadium" amounts to an annual cost of approximately US$30.4M. Usmanov and partner Farhad Moshiri own 25% of the club through their Red & White Holdings company, but they "have not been offered a place on the board or involvement in key decisions." Usmanov's proposed "debt gesture would be unique among the billionaire investors at the 'Big Four' clubs" -- Arsenal, Manchester United, Chelsea and Liverpool -- and the offer "will inevitably place fresh pressure on directors and follows a flurry of transactions over recent months" involving Arsenal. Wilson writes Arsenal BOD members are "likely to react cautiously to Red and White's offer in the suspicion that it is an attempt to bolster its standing among fans, although Usmanov has always stated that his involvement is motivated by a genuine support for the club" and manager Arsene Wenger. Meanwhile, Arsenal last year "increased season-ticket costs" 4.5%, but the club is "committed to freezing prices next season" (London TELEGRAPH, 5/13). Kroenke Sports Enterprises Owner Stan Kroenke on April 30 "increased his shareholding at Arsenal" to 28.3%, making him the club's largest shareholder (LONDONTIMES.com, 5/12).