THE ASSOCIATED PRESS
LONDON — Arsenal is endorsing a low-cost scheme that will enable fans to buy small stakes in the Premier League club and help to resist any takeover bid by rival American and Russian shareholders.
While not as expansive as the fan-ownership model at Barcelona, supporters can make small contributions to the "Fanshares" initiative before gaining an actual portion of Arsenal and be given a chance to attend key club meetings.
Stan Kroenke and Alisher Usmanov, Arsenal’s two largest shareholders, have offered their backing to the venture, according to The Arsenal Supporters’ Trust on Wednesday.
"Arsenal for 70 to 80 years has been the model of how a club should be run, investing in youth and not spending more than it can afford," AST board member Tim Payton told The Associated Press. "Now at a time (where at) other clubs like Manchester United and Liverpool the relationship doesn’t exist with the supporters, Arsenal is setting the lead for others to follow.
"As important is the symbolism of getting more people owning a part share of the club."
Arsenal will also provide free advertising on signs around the Emirates Stadium pitch during Saturday’s match against Blackpool — publicizing the scheme to hundreds of millions of television viewers around the world.
One Fanshare is priced at 95 pounds (C$153) — one hundredth of the value of actual Arsenal shares, which are currently worth 9,500 pounds (C$15,300).
Buyers will be entered into a ballot for a seat at the club’s annual general meetings, but anyone purchasing 100 Fanshares will have their membership status converted to receive full voting rights.
Once the first influx of money arrives, the supporters’ trust, which already owns about three per cent of the club, will acquire shares in Arsenal Holdings Plc., which is listed on London’s Plus Market.
"We are confident that the market will supply us with shares and that their first choice will be to sell to us as supporters," Payton said. "There are always a few small shareholders who need to realize some capital."
Payton also hopes to persuade the club’s biggest shareholders to release a small part of their stake.
Arsenal’s biggest shareholder is Kroenke with a 29.9 per cent holding, and the American sports investor has a place on the board — unlike Usmanov, the Russian who owns just over 26 per cent through investment vehicle Red and White Holdings.
The other main shareholders are Danny Fiszman, who owns 16.1 per cent, and Nina Bracewell-Smith, who is already looking for a buyer for her 15.9 per cent stake.
"It is symbolic, the fact the four major shareholders have given pretty strong suggestions that the ownership structure will stay plural," Payton said. "If the scheme is a success we may look to approach Lady Nina or other major shareholders to purchase a small number of shares from them, so they can also demonstrate their support.
"We would also talk to the club to see if we need an issue of new shares."
The British government urged other clubs to follow the lead of Fanshare.
"It is part of the coalition agreement to encourage supporters to have more representation at their clubs," said sports minister Hugh Robertson. "Arsenal’s proposal is an enlightened and forward-looking way of doing this, and makes it affordable for their fans to own a part of their club. Clearly it is for individual clubs to decide, but this is a model I’d like to see other teams explore."
It is unlikely that the Fanshares scheme would allow Arsenal to emulate Barcelona, whose 173,000 members own the club and elect its president.
"This is not about creating the next Barcelona, we are much more modest," Payton said. "We believe in plurality of ownership and having as many supporters as possible involved."
If either Kroenke or Usmanov take their stakes beyond 30 per cent, he would have to make offer for the remaining shares. If an investor buys more than 50 per cent of the shares, they gain legal control of the club. Anyone that reaches 90 per cent can purchase the remaining shares.