DIG THE NEW BREED III

Well, he’s English. Not overbearingly egotistic. No looking for ‘returns on investments’, ‘brand penetration’ or ‘reckless borrowing.’ He’s never said ‘soccer.’ Surely Peter Hill-Wood’s “sort.” Yep, I can see the headlines: “Sooty buys Arsenal.” Worse than genuine recent headlines? The Mail and Express headlined a front-page story on one housing survey, claiming diametrically opposed price trends. Then the Telegraph ran: “Ecclestone may seek Kroenke as ally” the day after its sister paper ran: “Ecclestone to fight Kroenke…” Much of this speculation surrounded Formula One’s Bernie Ecclestone - and daughter Tamara’s “romantic involvement” with ex-Arsenal vice-chairman David Dein’s son, Gavin. Suggesting Arsenal’s future could hinge on arguments over who got to read the latest Harry Potter first. 

Worse than other speculation? American ‘sports tycoon’ Stan Kroenke buys 659 shares from major shareholder Danny Fiszman, who’s now Geneva-based. Ergo, Fiszman’s losing interest in Arsenal. And if he sells more to Kroenke, Kroenke and Dein will have the 30% required to kick-start a takeover bid. AND Fiszman’s sale has brought him below the 25% he’d need to block that bid. There’s your story. Or not. Fiszman went to Geneva in 2005, having resigned as director of Star Diamond group, which made his fortune – enabling him to sell Star shares tax-free (Arsenal have used tax loopholes, legally, from 1979 deals over David O’Leary’s wages to ‘Gillespie Holdings’, connected to the Emirates project). Ergo, Fiszman’s losing interest in paying tax. 

He and Dein fell-out over the Emirates – Fiszman driving the project, Dein preferring Wembley. And Fiszman sold his shares via US bank Morgan Chase, unaware of Kroenke’s involvement, bringing his holding to exactly 15,000. And only after Hill-Wood advised that he couldn’t see any “particular worry.” It’s just another numbers game. But, like Wenger’s teams, exciting to watch. There’s the board, ‘old school’ to the point of caricature. Hill-Woods, Bracewell-Smiths, Phipps-Bagges…Sir ‘Chips’ Keswick! It’s easy – if stereotypical- to believe they don’t need Kroenke’s money and that they’d dismiss an American called Stan with hair like…that as “not our sort.” 

Then there’s the ‘new skool’ multi-sports club-owning superhero – if you believe UK newspaper reports from Denver. A 59 year-old who could play them all (lacrosse!!!) and has a genuine football interest. Hence Colorado Rapids’ business partnerships with Arsenal, which started this saga in February. And ego-less – letting his company’s vice-president Paul Andrews do the talking. If ‘Silent Stan’s’ done something wrong in sport, its well-hidden. Kroenke’s eventual success seems wearily inevitable. Even the board’s ‘lock-down’ proposal – banning share sales for a year – has no legal force. And empire’s like Kroenke’s aren’t built impatiently. But it’ll be intriguing to see what decides matters. 

Alas, it won’t be Arsenal Supporters’ Trust’s one share, without endless recounts. But it may come from small investors’ 18.03% Investment funds like Landsdowne Partners will be swayed by rising share-prices. And if a certain 659 shares become pivotal? Hill-Wood famously declared Dein’s 1983 Arsenal investment as “dead money”, which it was anything but. Could not seeing any “particular worry” become equally infamous? At Birmingham, Carson Yeung Ka-Shing (no jokes) has become major shareholder, buying from Davids, Gold and Sullivan, among others – via an unorthodox arrangement with small clothing company Grandtop International. 

Larger-than-life Gold and Sullivan seem comfortable with lessening their influence. Manager Steve Bruce might not be. Having made money everywhere from gas to gambling, Yeung became Hong Kong Rangers’ chairman – with a penchant for team affairs ‘involvement’ to make Rupert Murdoch seem ‘hands-off.’ Rangers’ coach Tim Bredbury complained of Yeung’s influence and someone “called Mr. Mok” and was soon ex-coach. Yeung has promised no interference at St. Andrews. We’ll see. Recently joining Grandtop’s board was Steve McManaman, whose previous clothing association was Liverpool’s white suits at the 1996 Cup Final, continuing his penchant for appearing in unexpected places – a Real Madrid European Cup-winning side, for one. Birmingham was the duo’s third choice after Reading and…Sheffield Wednesday (there’s insulting). But a takeover seems likely. 

Amid lame jokes about Eggert (egghead) Magnusson (Mastermind), it was overlooked that West Ham was 95% owned by convicted embezzler Bjorgolfur Gudmunsson. Gudmunsson’s criminality was thirteen years before the “fit and proper person” test’s remit. This highlights a weakness. It only applies post-August 2004. Even the ‘real’ law – the Rehabilitation of Offenders Act – allows ten years before sentences like Gudmunsson’s 12 months are treated, legally, as never occurring. Gudmunsson’s conviction isn’t relevant, his business career genuinely rehabilitated (albeit partly in post-Communist Russia). His takeover deal is relevant. And worrying. Effectively, West Ham are paying for their own takeover – plus millions in interest – via ‘loan notes’, share-buying money which requires repayment. Gudmunsson’s offer document makes it as clear as legalese can that this money is coming back to him via “receipt…of dividends from West Ham.” Relegation could therefore threaten West Ham’s very future. 

Ex-Chairman Terry Brown initially opposed the Icelandic bid. £33.4m for his shares changed matters. But his shareholders’ letter recommending acceptance said their “intention to retain Alan Pardew” was a favourable factor. They retained Pardew. For three weeks. Whether such ruthlessness inspired the tearing up of rules and agreements to allow Carlos Tevez to avoid relegation is, of course, not known. Chief Executive Richard Scudamore says all the ‘new’ money will make his Premiership more competitive. But he knows the top four will remain, unless Arsenal’s problems drag them down. Why else would the fixtures have the top four playing each other on the same weekends? 

The ‘new’ money will just liven up the UEFA Cup place race. If Spurs can’t outbid Manchester City for Dimitar Berbatov’s best mate, fifth will be a mountain. Derby will be cacking themselves. And Graham Poll will have his best season ever, serialisation of his bound-to-be-execrable book notwithstanding.  Meanwhile Manchester City v West Ham, on the season’s opening day, will demonstrate all that has gone wrong this summer. New signings from suspicious money against the very presence of a team who cheated to stay in the division at all.  

“But what about the football?” you cry. The football??? Oh, that’ll be horrendous.

‘MotorMurph’ is written by Mark Murphy.

Entry Filed under: MotorMurph Column

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