Al-Fahim Portsmouth Purchase Test Case For Fit-And-Proper Rule
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Unclear How Long Portsmouth
Sale Will Take To Complete |
The EPL is preparing to use Falcon Equity Chair Sulaiman al-Fahim's "takeover of Portsmouth as a test case for its strengthened fit-and-proper-persons rule that is due for introduction next week," according to Jamie Jackson of the Manchester GUARDIAN. Al-Fahim Wednesday announced his intention to bid for the club using his Al Fahim Asia Associates, and a source said that al-Fahim is the "owner of the fund but that it had numerous investors who had pledged their money on condition of anonymity." But that "will not wash" with the EPL, as EPL CEO Richard Scudamore has said the league "should know and the public should know and the fans should know who owns their club." The new rules, which will "not only demand that shareholders' details are lodged with the league but that they are also made available to the public, are expected to be introduced" by the EPL during its annual general meeting next week. Jackson notes due diligence then will "commence next week amid mixed messages over how long it will last." Portsmouth "believes it will take one to two weeks," but an al-Fahim spokesperson indicated that it would "not be completed until July" (Manchester GUARDIAN, 5/29). Al-Fahim Thursday said that Falcon Equity is the company "conducting due diligence for a putative takeover of Portsmouth" (Manchester GUARDIAN, 5/29).
REALITY CHECK: A FINANCIAL TIMES editorial states the EPL's success "owes much to the UK's recent boom." With the pound "inflated in strength by the financial boom, clubs could hire ultra-costly super-players more cheaply than rivals abroad." Also, because English clubs are privately owned, prices for tickets and merchandise can be "fixed to maximise revenue." But this approach "will need to change," as the "advantages of the credit boom are passing." This "dip in form is clearly visible on the stock market," as Birmingham City, which won promotion to the EPL at the conclusion of the '08-09 season, was "valued more highly last year than they are today" (FINANCIAL TIMES, 5/29).
INVESTOR NOTES: Kroenke Sports Enterprises Owner Stan Kroenke has disclosed that he has paid US$142.5M for additional Arsenal shares "in the past three months ... in building his 28.3% stake" in the club. The Plus Market, on which Arsenal's shares are traded, had "demanded a breakdown of all his transactions" (Manchester GUARDIAN, 5/29)....Investment bank Seymour Pierce Exec Chair Keith Harris, who has been "charged with selling" Newcastle United last winter, "visited the city on Tuesday." Harris' visit has "again prompted suggestions" Newcastle Owner Mike Ashley is "hoping to sell" the club (TIMESONLINE.co.uk, 5/28).
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