Wenger warns of 'catastrophic' effects of foreign ownership

As Russian billionaire Alisher Usmanov upped his stake in Arsenal to 23 per cent, Wenger argued that foreign investors who want an immediate return on their stakes threaten the very existence of English football.

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The Frenchman, who has consistently maintained his admiration for Arsenal's English ownership and good housekeeping, says there could be severe consequences if tycoons continue to buy clubs and burden them with heavy debts.

He said: "What disturbs me, it is that a club lives above its means. The true danger today is that people who buy large clubs refinance their purchase by borrowing money, by putting the debt on the account of the club. Manchester United generates so much money which they can use to service their loan — but their example, reproduced on smaller scale, can be mortal. That is the greatest danger to English football today."

In an interview with today's edition of France-Football magazine, Wenger said: "The money itself is not guilty. It is what people do with it that is bad. If the goal is to draw everyone upwards and make sure the players always earn more money, fine. But if that places us in an inflationary spiral, which leads to deficits and the collapse of clubs, it is catastrophic."

He added: "English football is in danger of losing its heart a little bit. We have passed from the era of the owner-supporter to the owner-businessman.

"You once had a child who attended matches, became a supporter of Liverpool, and, after having succeeded in the life, had as a dream to buy 'his' club. Things have changed since then."

Usmanov will announce today that he has bought around £6million more shares, which will take him through the 23 per cent barrier and towards his target of 25 per cent, which would make it hard for the board to push through some decisions without his approval.

The Russian is determined to launch a full-scale takeover and is reported to have paid more than £10,000 a share for his latest buy-up.

Usmanov is believed to be unhappy with the attitude of chairman Peter Hill-Wood towards his former business dealings and is set to go public next week with his vision for the club in an attempt to appease the club's fans before Arsenal's AGM on 18 October.

Hill-Wood and main shareholder Danny Fiszman insist they will not sell and that the current 'lockdown' agreement between the board members — preventing any selling their shares — means a takeover is impossible.