Russian oligarch Alisher Usmanov has written to the Arsenal board saying that he is prepared to underwrite a £100m rights issue. Usmanov, who is the second biggest investor in the club and is being advised by Lazards, claims that he wants to work with the board. His stated intention is to help address Arsenal’s debts and provide money to use during the summer transfer window. The board is expected to discuss the letter at its meeting this week. Usmanov is known to want to have a greater influence over events at Arsenal.
Russian oligarch Alisher Usmanov has written to the Arsenal board saying that he is prepared to underwrite a £100m rights issue. Usmanov, who is the second biggest investor in the club and is being advised by Lazards, claims that he wants to work with the board. His stated intention is to help address Arsenal’s debts and provide money to use during the summer transfer window. The board is expected to discuss the letter at its meeting this week. Usmanov is known to want to have a greater influence over events at Arsenal. Despite his 25 per cent stake in the club, his investment vehicle (Red and White Holdings) is not represented on the board which takes the view that using large sums to buy players could be risky. Red and White believes that the club’s £350m debts have made it uncompetitive on the pitch, This is denied by the board who want to pursue what they describe as a ‘sustainable business model’. They will not allow the club to borrow money it might struggle to repay, making it reliant on a benefactor. The Arsenal Supporters’ Trust has mixed feelings about a rights issue. It does not want money ‘frittered away’ in the transfer market, but thinks there would be benefit in a capital injection that had no impact on ownership and enabled the current debt to be reduced.