Why Kroenke doesn’t need to saddle Arsenal with Debton April 12, 2011 at 8:38 am
Stan Kroenke is a business man who currently holds full ownership of the Denver Nuggets, St Louis Rams, Colorado Rapids, Colorado Avalanche, Colorado Crush and Colorado Mammoth. He also runs his own Sports television network called Altitude Sports and Entertainment.
Bolt that to his many Wal-Mart stores of which he is landlord, The Pepsi center, the Malibu Colony Centre and many others and his fortune is easy to ogle at.
He currently owns just over 62% of Arsenal.
The reason Silent Stan will not need to burden Arsenal with the cost of his purchase is this; The American monopolies commission has ordered him to sell his majority stake in the Denver Nuggets and the Colorado avalanche by 2014. (His stake’s in both are currently managed by his son).
Looking at Forbes.com – the Denver Nuggets are valued at $321 million and the Colorado Avalanche are valued at $231 Million.
Now, bear in mind Stan has issued “promise to pay” agreements to Fiszman and Lady Nina Bracewell-Smith rather than given them cash direct would suggest that (to me at least) that he intends to fund his purchase with the cash raised from the sale of the above assets. He has to sell, but he’s got until 2014 to do it so I’m sure there will be plenty of folks wanting to take such assets from him at a reasonable price. Assuming he gets the value rated by Forbes, then he is looking at $552 million generated from those enforced sales alone, though I would suspect he would still keep an interest in both and not sell completely as he has never had a precedent for selling his shares in an interest before.
Much of this is speculation, as his corporate accounts for his businesses are held in the Bermuda Triangle of Finance called Delaware, USA where you do not have to declare your accounts.
I’m no accountant, but I would suspect he has more than enough assets to generate the cash required for his Arsenal purchase, certainly he could easily sell his Wal-Mart properties to his Mrs without harm.
It’s worth remembering, as far as I have been able to ascertain, Kroenke has never leveraged his debt onto one of his sports enterprises.