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The £50m battle for Arsenal
Terry Kirby18.12.08
A £50 MILLION battle for the future of Arsenal loomed today after a key shareholder left the football club, setting the scene for a potential bidding war which could ultimately leave it in foreign ownership.
Nina Bracewell-Smith, the businesswoman whose husband's family has a 70-year connection to the club, unexpectedly left the board and is now free to sell her 15.9 per cent stake to Russian steel magnate Alisher Usmanov.
The sudden departure of Lady Bracewell-Smith, the third largest shareholder whose stake is worth about £50million, is said to have followed a row at last Thursday's board meeting.
Another director, Richard Carr, who is related to her by marriage and owns 4.4per cent of shares, also left the main board. The resignations end a "lockdown" agreement among main shareholders under which they agreed not to sell to outsiders - a move designed to keep the club as the only one of the top four in British ownership. It was intended principally to block Mr Usmanov, whose company Red and White Holdings owns 24 per cent of Arsenal, making him the largest individual shareholder.
Mr Usmanov bought shares from David Dein, the former Arsenal vice-chairman who resigned in April last year and who now works for him.
A spokesman for Red and White said: "We are watching developments with interest."
Mr Usmanov has said in the past he did not wish to bid for control, but might be tempted if enough shares became available. Although Lady Bracewell-Smith said in October that she had "never considered" selling her shares, there have been rumours of her disaffection and willingness to follow Mr Dein's example.
There are suggestions she was unhappy with the choice of Ivan Gazidis, who takes over as the club's chief executive next month, and that she felt marginalised in the power structure, particularly over the club's marketing in India, her home country.
Arsenal chairman Peter Hill Wood told the club's website today: "Lady Nina is no longer representing the club and therefore is released from the lockdown. I don't know for certain what she wants to do with her shares. We hope that she would remain a shareholder but she has not spoken to me about it lately.''
Mr Hill Wood said "a number of the board'' had indicated their interest in buying more shares. He was thought to be referring to the American Stan Kroenke, who holds a stake of about 12 per cent and became a non-executive director in September. If he were to buy the shares, he would become the majority shareholder with a 27.9per cent stake.
However, if Mr Usmanov bought Lady Bracewell-Smith's stake, he could pass the 30 per cent mark which would force a formal takeover bid. Lady Bracewell-Smith, who was born in New Delhi, has been a non-executive member of the Arsenal board since 2005.
She obtained her shares from her husband, Sir Charles Bracewell-Smith, who inherited them from his grandfather, Sir Bracewell Smith, chairman of the club between 1948 and 1962. The family wealth is linked to hotels, having once owned the Ritz, and the Sheraton Hotel in Park Lane. Arsenal fans will be hoping the unrest will not make matters worse in a season of ups and downs. They face Liverpool at the Emirates Stadium on Sunday.
A City analyst who specialises in deals in the leisure sector said: "With 20 per cent of the shares now potentially up for grabs an almighty tussle is on the cards and Arsenal could be sold."
Reader views (16)
Provoke a row and stomp off in a huff. Then get friends to say you have been treated badly. Lastly sell your shares without a heed to what you have publicly stated. At the end of he day it is all about money! Forget principles and stuff the fans!!!
- Tom, Romford, Romford, Essex
If Arsenal are 'self-sustained' how come they borrowed so much to fund a new stadium? If All Wenger does is buy nuggets who become superstars (yes, Anelka or Petit) what does that make Nasri, Walcott, Henry, Jeffers, Hleb and the other > £5m buys? Oh, and a > £100m wage bill.
- Peter Bench, London
David Herron - I dont have a clue ! Didnt Morinho have success with Porto winning the Champions League, several trophies at Chelsea & is sitting top of Seria A with Inter, having qualified for the last 16 of the Champions League top of their group. He stated that he wishes to manage in the premiership again & would no doubt bring an injection of much need passion to the Emirates. I like Wenger's ideas of creating a youthful team at low cost, but in reality most of the young players are not going to be ready for 2/3/4 or 5 trophyless years & in the meantime we will continue to lose stars, which we are struggling to keep hold of, such as the likes of Fabregas, Adebayor, Gallas & Van Persie. We desperately need a top class goalkeeper, 2 tall centre backs, a holding central midfield player & at leat one wide midfield player. Imagine Arsenal with the addition of Buffon, Alex, Lescott, Yaya Toure & Ribery.
- Rob Gooner, North London
As soon as someone sells shares "big tussle for Arsenal" stories linked. He can have 50% of the clubs shares but doesn't put him in control.
Hill-Wood is the man and yet he has least shares... go figure.
All the top 5 bar Arsenal are foreign owned and now small clubs like Man City and for longer Spurs, I for one wouldn't like to be in others safe-keeping although I am surprised at Bracewell - Smith as the family have been tied in with Arsenal for decades..
- John Livermore, Bermondsey, London
Alisher Usmanov to take over Arsenal. Signing new players, Winning trophies again, David Dean back again.
Do I really want that?
Well yes I do. Please sell your shares to Alisher Usmanov Mrs Bracewell-Smith
- Trevor Banks, Hendon
Morinho as manager Rob Gooner??? Your obviously have no clue at all!!! As for selling the club, it doesn't matter if the owners are English, Arabian, Russian and have all the money ion the world, the fact is the reason we don't spend money is that Wenger doesn't feel the need to; He's happy to buy players for £500,000 and sell them for £22.5 Million (Anelka). Although, he'll have to dip into the market on Arsenal's current showing...
- David Herron, London
time for the fiszman and kroenke to take control and keep arsenal the way it is - usmonov will destroy the club and put us in debt like the rest of the premier league so-called 'big four'. Rather have a few seasons with underperformers and pay back debt than splash the cash and end in huge debt - dein go away
- Mike, portsmouth
I believe that what Arsenal's board are doing is important to the future of the club, but there shoulod be no suggestion of a change of the Manager, Mr Wenger has done a marvellous job and if Arsenal let him go they will suffer the consequencies.
- Edward, London, Chessington, Surrey
Money has always been available its Arsene who has refused to spend it.Arsenal's problems do not lie in the myth that they cant compete financially, Hill-wood as always maintained that there are funds available. Given the current economic climate I think it makes no sense handing over control to a foreigner whose money is tied into oil. Abramovich has lost billions, lets see how Chelsea fair in the next couple of seasons & Man Utd's Glazer appointed sponsors have just been bailed out in the US.Being self sufficient is paying dividends and the onyle sensibile option, I believe this will be reflected in the coming transfer window, where I hope we will be the most busiest.
- Stephen. A, East London
Why is everybody going on about needing to sell? We would have the money to spend anyway, Peter Hill-Wood said. Arsène just chooses not to spend it!
Does no-one have any pride left in being one of the final, and most successful self-sustained football clubs remaining?!
- Phil, Munich (ex-London)
This is the new era of Arsenal...to have more funds to buy a quality players. We want glory...we want championship trophy...
- Shadzan, Bandar Tasik Puteri
This ideology of rich owners coming in and giving clubs money for free is ridiculously nieve.. Just look at liverpool and Man U who are far more in debt than arsenal because of their new owners.. There not going to just give arsenal money as a present, they want to profit from the club
- Simon Cook, London UK
Arsenal better watch out that Spurs dont try to save having to spend money on a new stadium?
- Melvyn Windebank, Canvey Island, Essex
Arsenal at the moment cant compete in the transfer market
need bigger generation of transfer money Alisher Usmanov
could provide this .And David Dein would return.
- Tom Mc Carthy, london, uk
Its time for Usmanov with David Dein to tale control. Next step is to appoint Jose Morinho as manager, with funds to compete.
- Rob Gooner, North London
arsenal must sell the club to arabian than russian coz arab is more money to spend ,just look at man city ,its more entertaining although they are not topers in the league.
- Hafidz, jitra
