A continuation of the 3 part ownership series by @Gooner_optimist. Some of you might already be well versed in the knowledge of what transpired to bring us to the current situation, and if you do, feel free to skip this piece.
Continuing on from my first post about Arsenal’s Ownership, let’s jump straight into what were the reasons for David Dein’s fallout with the rest of the board? There are several theories but as I understand it, it is down to two main differences. First, it is well known that he preferred that the club move to the Wembley and lease it out instead of building a new stadium, something that was opposed by the rest of the board, especially Danny Fiszman. Second, he saw Abramovich changing the equation at Chelsea and sought to adopt a similar external investor approach by introducing Stan Kroenke to the board. However the board at the time refused this move due to their wariness at the time toward American investors after seeing the goings on at United and Liverpool with the same (“We don’t need his sort”).
These differences and more led to his ousting and while there are many positives and a few criticisms of David Dein we will not get into them here lest this debate turn into a “bring Dein back” one that features frequently in Arsenal discussions these days. His mention in this blog ends with his ousting from the board in 2007, when he sold his shares in Arsenal to Alisher Usmanov for a nice little sum of £75 million. Interestingly you could conclude that this current tussle between two owners that we see right now is partly down to Dein himself creating it.
While the fallout between Dein and the rest of the board was continuing, Kroenke was picking up a few shares of his own by purchasing the 9.9% holding that was with ITV subsidiary, Granada, and slowly building up his shareholding. Fast forward in history again to 2011, a time when Danny Fiszman, a man who was Arsenal through and through, was suffering from throat cancer and his failing health meant that his shares in Arsenal needed to be sold. By this time, both Kroenke and Usmanov had managed to pick up shares over time to get very close to the 30% mark, the achievement of which would mean they were obliged make a takeover bid for all shares.
The decision of who to sell shares to, in my opinion, was partly down to the board warming up to Kroenke in time. I believe he was the one who most convinced the board that he would let the club continue in line with its historical principles, especially that of being self sustaining. These defined the long term plan of the club as well at the time as the goal was to achieve success the hard way, using our own resources instead of relying on an external benefactor. On the other hand, there is also a chance that the sale might have been governed to an extent by the aftermath of the fallout with Dein and to keep the one he sold to (and had strong links with) at arm’s length.
Thus it came to pass that Fiszman sold his 16% of shares in Arsenal to Kroenke, 2 days before his death, and Kroenke launched his takeover bid as he was required to upon crossing the 30% threshold. Usmanov, as the other largest shareholder was entitled to provide a counter offer to Kroenke’s and allegedly placed an offer that was higher than Stan’s. For a board that often gets accused of chasing profits, an important question needs to be asked here, why didn’t they go for the bigger money offer? Why did absolutely NO ONE sell to Usmanov? Why instead did Stan become the majority owner with over 60% stake in the club by adding shares from Fiszman, Lady Nina Bracewell and Peter Hill-Wood etc?
Another thing is that the board is questioned about is how much (or how little) they care for the club and its long term future. On one hand, this is rather odd when you consider that the likes of Peter Hill-Wood and Ken Friar have been on the board for many years, whether it’s the successful Graham years or the even more successful Wenger ones. They were also the deciding factor in giving us our amazing stadium, the revenue from which, helps keep us competitive. To accuse them of suddenly not caring or not having the club’s best interests at heart after all these years might be a bit harsh.
This leads me to the last point regarding why they might not have sold to Usmanov, and that’s a simple one, that someone like him shouldn’t be anywhere near our club which prides itself on its integrity and class. Why you ask? I’ll save that for the next and final post in this series that will form my main argument about why we need to keep Usmanov far away from our club.
Positively Arsenal 
Nice write up. Very much needed and can’t wait for your 3rd installment.
Well done.
LikeLike
Interesting. I wonder why Dein didn’t sell to Kroenke. I guess Usmanov just offered him more money?
LikeLike
I can hear m’learned friends circling – I am however braced for the truth about AU – although I am not entirely sure it makes much difference
I am more focused upon the underrated Marouane Chamakh proving the boo boys wrong tonight
LikeLike
@anicoll5 at 9:24 am
Where were you on Saturday, buddy? Andrew and I were waiting for you to turn up in the Coronet wearing a bowler hat!
LikeLike
I was George – sat two tables in from the door on the left hand side, nervously looking at my phone and eyeing up a bloke at the bottom of the stairs who I now know to be Mr Luck !
However there are worse places to be spurned than a pub
And believe me I know 🙂
LikeLike
“However there are worse places to be spurned than a pub”
At least Carzola brought along his scoring boots!
–
I confess, for my sins, I enjoyed the game on Saturday. A few of the quicksilver passing moves reminded me of Steww’s post the other day. Hints of what is to come. Giroud may not have scored but I thought his ‘link up play’ especially in the first half was sweet. If it took the glass kneed Judas +/- six to nine months after he switched to CF to be able to telepathically play for those near post runs I can wait.
–
Couldn’t join the PA meet as I only had my ticket forced upon me by a poorly neighbour at 13.00, interrupting a planned afternoon’s work…It’s a tough life being an Arsenal fan.
–
As for the nexus between Dein, Kronke And the Lion of Uzbekistan: I have no idea what has been going on. Lots of smoke and mirrors. And some smelly things too ( especially on t’internet). Looking forward to the rest of the series.
LikeLike
All nice and well, all great the Arsenal history of integrity and class but how is that going to stop Kroenke selling us to a rich boy in need of a new toy? After Manu we must be the most desirable club in the UK. We’re only a hissy fit away from becoming the next Chelsea. This worries me far more than trophyless years.
Maybe an idea for a next article to have a look at Ownership structure of e.g. Bayern Munich and ‘how they got there’. As far as I understand they are owned for 50% by the supporters.
LikeLike
Bayern are owned 9% by Audi and 9% by Addidas, and their stadium is a giant bill board for Phillips.
The New Arsenal stadium has some Emirates logos, but it does look like The Arsenal’s stadium. Not every comparison of how both Football clubs have bitten the corporatist bullet works in Bayern’s favour. Not everything The Arsenal have done has been wrong.
Some regulation to match the Bundesliga by those who are responsible for the Game here in Blighty would help, but it suits a few to blame all the problems of English Fooball on AFC (i.e. the ‘smell’ above).
LikeLike
If we don’t have a house solicitor ,we may need one when the third installment comes out.
I am serious.Didn’t AU threaten to take Arseblog to the cleaners?
Lets have a care!
LikeLike
@anicoll5 at 9:49 am
So, Mr Luck is not Arsenal Andrew? Well it seems we were standing a few feet away probably just to the left of your table. What a shame!
LikeLike
outfuckinstanding optimist_gunner !!!
” they are lining their pockets” – LIE
” kroenke in it for the profits” – LIE
” dein loves the club” – ahahahahahaha
” usmanov is a man of class and integrity” – ahahahahahahah x 100
a banner at the stadium with the following words :
“wenger + kroenke = arsenal 4 life”
and watch usmanov ,david and their trolls go nuts …hejeje
LikeLike
pedantic george February 25, 2013 at 10:38 am
oh that poor fat bastard, worried about his “philanthropist” profile ? ..
LikeLike
O 2 O 2 be
O 2 be a Uzbek
(Needs more work)
LikeLike
@John
There will be a post comparing Bayern and us soon… I’m working on that… The conditions there favour them
LikeLike
is it any coincidence that the dein/usma pressure was intensified during the time old pete was in hospital…plus when kroenke came to town?
i guess thats what the fat uzbeki cunt’s class is all about …and dave’s….
all the trolls that are attacking wenger arsenal and kroenke are doing it becaue of robin going to united…which is usmanov;w numero 1 casius beli according to that interview he gave a month ago…
so obvious….
LikeLike
@PG
Arseblog was threatened? I didn’t know that at all… Interesting…we can deal with the philanthropist if the need arises I think
LikeLike
@ hunter
Dein is no longer connected with Usmanov or Red n White
LikeLike
I do wonder though… Why did Dein first introduce Kroenke to the board, then sell his shares to Usmanov, become chairman of Red n White Holdings, and then leave that post and now has nothing to do with either one
LikeLike
Adi February 25, 2013 at 12:10 pm
because he fucked up …thought short term…ruined his relationship with hillwood and the rest, and after that usmanov was a one way street for him if he ever wanted to get back…. now that he sees kronke and the rest of club standing strong maybe he switches sides again….
who knows maybe he invests his 75 million in arsenal to get new players for us… he isnt it for the money. you know..he loves the club…. 🙂
LikeLike
perhaps he is also seeing that it is utterly ridiculous to have his mersons rights and whatevers abusing the manager who helped him turn that 225k investment into a 75million payment.
LikeLike
Good article, very clearly set out. On a side note, I do find it extraordinary that some fans question the love of long-term directors for the club, while taking the love of a comparative newcomer for granted.
@ red kangaroo
I think is is likely that Dein misread Kroenke – perhaps he originally thought he might make him an ally in his battle with the board – at the time there was a lot of “Dein will be back” talk from him. But SK is a big fan of the self-sustaining model and that is why he got involved in Arsenal shares (he says). He didn’t want to take over and oust the board. He said at the time that he respected the board and the way they were running Arsenal.
LikeLike
Look forward to the third instalment, I genuinely know very few facts about the Bond villain-only pub talk,but lets not get shut down heh?!, anicoll-you weren’t wearing one of those “enough is enough” stickers on Saturday were you?
LikeLike
finsbury February 25, 2013 at 10:24 am
Well said.
LikeLike
That’s me Mel – I was carving enough is enough into the head of the bloke selling the Gooner fanzine
It took me eight minutes
I like to linger
LikeLike
Off topic. Until recently, though very happy with the squad, I was worried that we didn’t have matchwinners/gamechangers in the side – the icing on . I thought we had three or four players with that potential either in the medium term or the long term (Podolski, Walcott, Wilshere, Cazorla, AOC), but not in the short term. I was wrong. I apologise, Santi Cazorla. And it might just be me, but having him on the left (especially when he stays there, as in the second half on Saturday), might work even better for us than having him in the middle.
LikeLike
“the icing on the cake”. duh. Sorry.
LikeLike
Very very interesting post again…
What leaves me a bit bemused, is the relationship that remains between Dein & Wenger?!
Apparantly they holiday together and socialise…
If Dein was such a negative influence, would not an intelligent man like Arsene, have nothing to do with him?
LikeLike
Good stuff and excellent point about not selling to the highest bidder. I am also looking forward to Part 3.
Currently, people with little knowledge or little understandand of whatever knowlegde they have have been dissing big time and they have done nothing but bring a negative vibe around the club. For me, I love the direction of the club and I things will only improve. The long term health of the Club is far more important that trophies, if people cannot see that, that is their problem.
LikeLike
@Allezkev , well you have to consider the fact that Dein was responsible or key in bringing Arsene to Arsenal. Also, we need to remember the fact that Wenger is not a man who spoils his personal relationships, over professional instability. Example , the way he is still in touch with Van P*****
LikeLike
Good post and some great myth-debunkers in there. There is clearly a need amongst some current-generation Gooners to be reminded of the precise details of our recent history …
Looking forward to the final instalment; suggest you post as Pedantic George, our blogger from Blackburn, Japan. They’ll never find him there. So long as the post is factual and simply repeats what is already ‘out there’ we should be ok but I’ll start up a rota for visiting PG in prison on the off-chance someone tells AU where he is at Arshavin Towers, Meerkat Way, Blackburn, Lancashire Prefecture.
Interesting to see tonight’s derby is being described as a “must-win” for the spuds by the media. Worth remembering they are under as much pressure we are. Bale clearly playing for a transfer may give them a short term boost; hopefully he’ll get sent off for diving any game now …
LikeLike
I would just like mr. Usmanovs lawyers and the investigating officers that I have George’s adress and that I’m also ready to co-operate in order to cover my own involvement,to be clear”I’ll sing like a fucking canary”, as for visiting him in prison? George who?
LikeLike
@ pedantic george
Good to know you’ve got friends, eh?
LikeLike
ha!
LikeLike
FG @ 1:35pm – Must say mind is already on Saturday’s NLD. Our 4 game changers (Santi, Theo, Poldi and Jack) have to play. AOC has dropped in the pecking order but his time will come.
LikeLike
Yes Gooner Optimist, I can see your point.
It still mystifies me, when you consider how his son has asset stripped Wenger of his best players.
There might be issues and politics in and around the Boardroom, that we’ll never have a clear picture of…
LikeLike
Game is on Sun, Shotta
LikeLike
http://www.arsenal.com/news/news-archive/club-announces-latest-financial-results
LikeLike
http://hereisthecity.com/2013/02/24/the-stats-which-emphasise-nacho-monreals-superb-arsenal-show-v-v/
Not sure if this was posted.
LikeLike
Andrew, baking a file into a cake for George as we speak. Thanks for the post @Gooner_optimist looking forward to p3.
LikeLike
A monologue sometime in ’83 ’84 ’85
” Ah shit, why oh why dad? I know we’re rich, i understand i must uphold the tradition but for fucks sake dad, why couldnt you just sell this fucking football club when you had the opportunity? Ah heavens , liam wanted out 3-4 years ago and we sold to juve for 500k instead of 1,5m to united to avoid fans complains, i wonder which idiot handles transfers at my football club, then stapleton wanted out too, fucking disloyal cunts the lot of em.”
Another monologue sometime in ’94, ’95
“I cant bear this any longer, my father’s and grandfather;s football club, my glorious institution, is everyday on the papers for drug scandals, alcohol scandals, corruption scandals, what the fuck is going on? why does everyone hate us ? what have we done? who is in charge down there?”
then the apocalypse came and now we find ourselves in the year 2013 and hillwood’s comments in annual report showing a teenager’s enthusiasm about the 13 million followers worldwide on facebook, the 2 million in twitter the 1 million in quebo…then he sees the health of the company and the profits, everyone gets paid, we pay all our expences on our own plus our new stadium, a core of english lads signing and staying for their best years…. who would have thought huh pete?
old pete whose been there since before i were even born values the transformation of arsenal more than anyone and he will die protecting wenger and our values against that cunt that wants to turn us into a toy for uefa/sky consortium, another soulless cog in their money making machine. No, gentlemen, we have our own clear vision about football and we change for noone. 125 years in the making and here for another 125. ON OUR OWN ….
cultist you say? oh yes…. the cult of arsenal…i know whats good for my club. And he’s going nowhere! When the time comes the real fans sill stand up. Im positive!
p.s that silly boy with the chicken on his chest didnt learn his lesson last season and is desperate for a repeat session…
LikeLike
If Spuds lose or draw this afternoon, Sundays game will be an absolute barn burner.
LikeLike
For a team that cannot score, I like how we are close to having 4 players score in double figures this season. The great thing is that this is the first season at Arsenal for three of them. Bodes well for the future.
Any news on Diaby?
LikeLike
I just searched for news on Diaby, Paul, and there isn’t anything thus far.
LikeLike
Thanks, G69. I hope he is ok. He looked reallu good on Saturday and as we know, give a few matches and you see what he can really do.
Is Rosicky ok? he seems to be playing very little even though he is back from injury. He is a player I would give a go in Germany, I think his burst of pace and range of passing would be good against a team that is very discipled at the back. The guy is class.
LikeLike
I see George is not around maybe he’s met mister big in the showers already,I also think stew should give me George’s slot on his radio show and tell him if he’s got any gold teeth I’ll have them as well.
LikeLike
Paul
I heard Diaby was taken off as a precaution because he felt a small twinge in his thigh muscle Should be ok for the sperz game
LikeLike
Let’s hope anyway.
LikeLike
Yes, lets hope so.
Does anyone know who runs the blog “Arsenal Truth”?
LikeLike
Arsenal Truth is a steaming pile of crap. The mong links to piles the farmer’s blog ffs.
LikeLike
I know it dups! The guy is a joker. Anyone who calls their opinion “truth” thinks way too much of themselves.
LikeLike