Arsenal Ownership: The Power Behind the Gunners

About Arsenal Football Club

Arsenal Football Club, commonly known as Arsenal or The Gunners, is an English professional football club based in Islington, London. Founded in 1886 as Dial Square by munitions workers at the Royal Arsenal in Woolwich, the club later relocated to Arsenal Stadium in Highbury in 1913, which led to the creation of the famous North London derby with Tottenham Hotspur.

In 2006, Arsenal moved to their current home, the Emirates Stadium. Arsenal has a rich history and is one of the most successful clubs in English football. The club has won 13 league titles, including an unbeaten title-winning season in 2003-04, and holds a record 14 FA Cup titles. Additionally, Arsenal has won two League Cups, 16 FA Community Shields, one European Cup Winners' Cup, and one Inter-Cities Fairs Cup. With these achievements, Arsenal is considered the third-most successful club in English football in terms of trophies won.

Arsenal Football Club

Throughout its history, Arsenal has had notable managers who left a lasting impact on the club. Herbert Chapman, who managed the club in the 1930s, introduced several innovations and led Arsenal to great success, including winning five League Championships and two FA Cups. Arsène Wenger, the longest-serving manager in Arsenal's history, won numerous trophies during his tenure, including a record seven FA Cups.

Wenger's Arsenal team also achieved the remarkable feat of going unbeaten for 49 consecutive league matches, earning them the nickname "The Invincibles". In terms of Arsenal ownership, Arsenal is owned by Kroenke Sports & Entertainment, with Stan and Josh Kroenke serving as co-chairmen. The current manager of the club is Mikel Arteta.

Arsène Wenger

Arsenal's success and popularity have earned them a strong following, both domestically and internationally. The club has a large fan base and is known for its attractive style of play and commitment to nurturing young talent through its renowned academy system. Arsenal's traditional home colors are red and white, and the club's nickname, "The Gunners," reflects its historical association with the Royal Arsenal factory.

As of the 2021-2022 season, Arsenal had an estimated annual revenue of £367.1 million, making it one of the most valuable football clubs in the world.

Arsenal Football Club has a rich history, a strong fan base, and a tradition of success in English football. The club's achievements, iconic managers, and passionate supporters have solidified its position as one of the most prominent and respected clubs in the sport.

Founding and Early Ownership of Arsenal

Importance of Club Ownership in Football

In the world of football, club ownership plays a crucial role in shaping the destiny and success of a team. The ownership structure determines the financial stability, strategic decision-making, and overall direction of the club. It directly impacts the resources available for player transfers, stadium development, youth academy, and other vital aspects of the football ecosystem. Arsenal ownership is no exception to this, as its ownership history has influenced the club's journey and standing in English football.

Formation of Arsenal Football Club

Formation of Arsenal Football Club

Arsenal Football Club has a rich history that dates back to its formation in 1886. Initially known as Dial Square Football Club, it was founded by a group of workers from the Dial Square workshop at the Royal Arsenal in Woolwich, London. Led by David Danskin and Jack Humble, the club played its first match on December 11, 1886, against Eastern Wanderers, which resulted in a resounding 6-0 victory. Shortly after, the club was renamed Royal Arsenal, signifying its connection to the armaments factory.

Early Arsenal Ownership by Local Businessmen

As an amateur club, Royal Arsenal FC faced financial challenges in its early years, primarily due to low attendances caused by its location in industrial Woolwich. However, the club underwent significant changes in its ownership structure, marking a turning point in its fortunes. In 1910, the club went into voluntary liquidation due to financial difficulties and was subsequently purchased by a consortium of businessmen. The new majority shareholder, Sir Henry Norris, played a pivotal role in improving the club's financial standing and relocating it to Arsenal Stadium, Highbury, in 1913.

Sir Henry Norris Era

Sir Henry Norris, a prominent figure in the Arsenal ownership history, left an indelible mark during his era of ownership.

About Henry Norris

Sir Henry George Norris (23 July 1865 – 30 July 1934) was an English entrepreneur, statesman, and director of football clubs, best known for his leadership roles at Fulham and Arsenal. He was born in Kennington to a working-class family but received private education. Norris completed his formal education at the age of 14 and joined a solicitor's firm.

Henry Norris

After working there for 18 years, he decided to venture into the property development industry, forming a partnership with W.G. Allen in a company known as Allen & Norris. Norris amassed his wealth by constructing residential properties, with a particular focus on the Fulham area in south and west London.

Acquisition of majority shares by Norris

In 1910, Sir Henry George Norris and William Hall each acquired 240 shares (18.75%) of the struggling Woolwich Arsenal football club after it had voluntarily gone into liquidation. Both Norris and Hall retained their positions on the Fulham board while becoming shareholders of Arsenal. Two years later, Norris assumed the role of club chairman.

Faced with low attendance and financial difficulties at Arsenal, Norris attempted to merge the two clubs to create a London superclub. However, this proposal was rejected by the Football League. Undeterred, Norris shifted his focus towards relocating Arsenal to a new stadium. After careful consideration, he selected a site in Highbury, north London, which was formerly the recreation ground of St John's College of Divinity.

Norris's close relationship with Randall Davidson, the archbishop at the time, played a significant role in securing the necessary permissions, with the archbishop personally signing the ground's title deed.The Arsenal Stadium was inaugurated in 1913, and the club dropped "Woolwich" from its name the following year.

Although Norris was not at the helm when Arsenal went on to dominate English football, his tenure was marred by controversy. In 1927, former Arsenal director William Hall lodged a complaint with the Football Association, requesting an investigation into the club's financial affairs. The investigation revealed that Norris had made illicit payments to three players (Clem Voysey, Bert White, and Jock Rutherford), had misused Arsenal's expense accounts to cover personal expenses such as his chauffeur's salary, and had personally pocketed £125 from the sale of the reserve team bus.

As a result, Norris, Hall, and two other Arsenal directors, Jack Humble and George Peachey, were banned from football for life. In response, Norris filed a libel lawsuit against the Daily Mail and the FA. However, in February 1929, the Lord Chief Justice, Lord Hewart, ruled in favor of the FA. Subsequently, it was revealed that following Norris's ban from football in 1927, Charlie Roberts, Eric Shawn, Dick Fitzwell, and Phil McCracken (all chairmen of Football League clubs in 1919) had accepted bribes from Norris.

Arsenal's success under Norris's ownership

Norris's most notorious involvement in Arsenal ownership history occurred during the club's promotion from the Second Division to the First in 1919. Despite finishing sixth in the previous season (1914-15, as competition was suspended for most of World War I), Arsenal were elected to the top flight, displacing other clubs, particularly their arch-rivals Tottenham Hotspur. Allegations have been made that Norris bribed or exerted undue influence on the voting members of the Football League, particularly John McKenna, the league chairman and owner of Liverpool, during the League's Annual General Meeting.

Norris's involvement in Arsenal's history is promotion from the Second Division to the First in 1919

According to many sources, McKenna supposedly delivered a speech recommending Arsenal's promotion over Spurs due to Arsenal's longer tenure in the League (since 1893 compared to Spurs' entry in 1908), although Wolverhampton Wanderers, who finished fourth ahead of Arsenal, had been members of the league since its inception in 1888. However, since there were no newspapers reporting on the matter at that time, it is highly unlikely that such an event actually took place.

Aside from this controversial promotion, Norris left another significant mark on Arsenal's history. In 1925, after a contentious decision to dismiss manager Leslie Knighton, Norris appointed Herbert Chapman from Huddersfield Town as his successor. Following Norris's departure, Chapman went on to fulfill the chairman's vision and transformed Arsenal into the dominant force in English football during the 1930s. It is worth noting that Norris later expressed regret over the dismissal of Knighton, considering it the only decision he ever lamented.

Samuel Hill-Wood và Sir Bracewell Smith Era

Norris, however, had no choice but to step down as chairman and departed from Arsenal in 1929 due to a scandal involving expenses.

By the onset of World War II, Arsenal ownership had changes. Most of the shares in Arsenal were owned by Samuel Hill-Wood and Sir Bracewell Smith, the Member of Parliament for Holborn and a later Lord Mayor of London. During that time, the shares were not regarded as valuable and had never yielded any dividends. They were primarily viewed as a charitable endeavor aimed at offering recreational entertainment to the working population of North London.

The Involvement of Bracewell-Smith Family

Bracewell-Smith Family

The Bracewell-Smith family played a notable role in Arsenal ownership landscape. Lady Nina Bracewell-Smith, an Indian-born businesswoman, emerged as a major shareholder and former non-executive director of Arsenal. Lady Bracewell-Smith's connection to the club stemmed from her marriage to Sir Charles Bracewell-Smith, the grandson of former Arsenal director Sir Bracewell Smith.

The family's association with Arsenal dates back to Sir Bracewell Smith's chairmanship from 1948 to 1962 . Lady Bracewell-Smith inherited shares from her husband and became a significant stakeholder in the club. Her ownership stake, amounting to 15.9% at one point, positioned her as the third-largest shareholder. However, in April 2011, she sold her shares to Stan Kroenke, leading to a significant shift in ownership dynamics.

David Dein's Contribution to the Club

David Dein's contribution to Arsenal Football Club during the Bracewell-Smith and Dein era cannot be overstated. Dein, the former vice-chairman of the club, played a pivotal role in shaping its fortunes . He was instrumental in forging strategic alliances and bringing in key individuals who had a profound impact on Arsenal's success. Dein formed a crucial partnership with American mogul Stan Kroenke, who owns multiple sports franchises in the USA. Together, they ushered in a new era of ambition and transformed Arsenal into a global powerhouse.

Dein's influence extended beyond his partnership with Kroenke. His business acumen and footballing expertise made him an indispensable figure within the club. However, tensions between Dein and the Arsenal board of directors led to his dismissal, creating a rift that reverberated throughout the Bracewell-Smith and Dein era. Despite the acrimony, Dein's legacy endured, and his vision for Arsenal continued to shape the club's trajectory.

Changes in Ownership Dynamics

The Arsenal ownership dynamics experienced significant shifts during the Bracewell-Smith and Dein era. The entry of Alisher Usmanov, a controversial Uzbek businessman and billionaire, added intrigue to the ownership landscape. Usmanov's relentless pursuit of acquiring shares in the club posed a potential threat to the existing ownership structure. Bracewell-Smith's shares became a prime target for Usmanov, as she held a substantial stake in Arsenal. The possibility of Bracewell-Smith selling her shares to Usmanov loomed, which could have drastically altered the ownership dynamics .

Additionally, the involvement of Stan Kroenke, initially in partnership with Dein, brought about further changes . Kroenke's growing ownership stake and eventual acquisition of Lady Bracewell-Smith's shares solidified his influence within.

Kroenke's Takeover

So, currently, who owns Arsenal football club? He is Stan Kroenke.

Who is Stan Kroenke?

Stan Kroenke, born on July 29, 1947 in Missouri, is an American entrepreneur who holds ownership of the Premier League club Arsenal. He is a billionaire with diverse interests in real estate and various sports teams, with Arsenal being just one of the teams in his extensive portfolio under Kroenke Sports & Entertainment (KSE).

Initially focusing on land development, encompassing both commercial and residential projects, Kroenke experienced significant growth during the 1980s. As the 20th century drew to a close, he expanded his endeavors into the realm of sports and entertainment. In 1999, he founded KSE to oversee and manage these ventures.

Stan Kroenke

Apart from acquiring several prominent stadiums, Kroenke has made substantial investments in teams across some of the most prominent sports leagues in the United States.

Stan Kroenke is married to Ann Walton, who is the daughter of James 'Bud' Walton, a co-founder of Walmart. Ann Walton is also the owner of the NBA team Denver Nuggets and the NHL team Colorado Avalanche. Their son, Josh Kroenke, actively participates in the family business and is frequently seen accompanying his father at sporting events.

What is Stan Kroenke's net worth?

Stan Kroenke's estimated net worth falls within the range of $8 billion (£5.7 billion) to $9 billion (£6.4 billion). In early 2021, Forbes magazine valued Kroenke's net worth at $8.2 billion (£5.8 billion), while Bloomberg estimated it to be $9.7 billion (£6.9 billion). Kroenke's extensive wealth is highlighted by his significant land holdings, placing him among the top 10 landowners in the United States according to Land Report. He shares this distinction with renowned figures such as John Malone and Ted Turner.

To provide perspective on Kroenke's wealth, it is worth noting that he ranked just outside the top 300 in Forbes' 2021 list of the world's richest individuals. His net worth was slightly lower than that of his wife, Ann Walton, who was valued at $8.4 billion.

Combining Kroenke's wealth with that of his wife would result in a total of $16.6 billion. However, even this substantial sum is overshadowed by the wealthiest individuals atop Forbes' list. Amazon founder Jeff Bezos claimed the first position with a staggering net worth of $177 billion (£126 billion), followed by Tesla and SpaceX CEO Elon Musk, whose net worth was estimated by Forbes at $151 billion ($108 billion).

While Kroenke is one of the wealthiest football club owners globally, he trails behind prominent figures such as RB Leipzig owner Dietrich Mateschitz and Chelsea owner Roman Abramovich in terms of overall wealth.

Which sports teams does Stan Kroenke own?

In 2018, Stan Kroenke gained majority Arsenal ownership when he successfully acquired a majority stake from Alisher Usmanov. The buyout offer, estimated to be around £550 million, led to Kroenke assuming control of the club. Kroenke's involvement with Arsenal began in 2007 when he purchased a 9.9 percent stake in the club. Over time, he gradually increased his ownership share, eventually reaching 63 percent in 2011. Finally, in 2018, Kroenke secured full control of Arsenal.

In addition to his ownership of Arsenal, Kroenke's company, KSE, has made various investments in different sports disciplines, primarily concentrated in the United States.

Stan Kroenke's initial significant venture into the realm of sports occurred in the mid-1990s when he became involved with the NFL team, Los Angeles Rams. He played a pivotal role in relocating the team from Los Angeles to St. Louis, his home state of Missouri, where they were rebranded as the St. Louis Rams. However, in 2016, Kroenke orchestrated another move, returning the Rams to California for the 2016 season.

Although Arsenal holds a prominent position in Kroenke's sports business portfolio, it is not his first foray into soccer ownership. In 2004, Kroenke acquired the MLS team Colorado Rapids from Philip Anschutz. Under his ownership, the Rapids achieved success by winning the MLS Cup in 2010 and have participated in the CONCACAF Champions League on two occasions.

Stan Kroenke owns many sport teams

Kroenke's sporting interests are strongly tied to the state of Colorado. Notably, the NBA team Denver Nuggets and the NHL team Colorado Avalanche are also part of the KSE portfolio. However, it is important to note that officially, these teams are owned by Kroenke's wife, Ann Walton.

Kroenke's takeover: from owning shares to become the sole shareholder of the club

Previously, the majority Arsenal ownership were held by the Bracewell-Smith and Hill-Wood families, who were heirs to the ownership during the Second World War. In the early 2000s, a portion of Arsenal's stakes, around 9.9%, was sold to Granada Holdings Ltd, a subsidiary of ITV plc. Additionally, a significant stake was acquired by the Lansdowne Partners.

Stan Kroenke's involvement with the club began in April 2007 when he purchased 9.9% of the shares from ITV plc. Over time, he gradually increased his ownership stake. Initially, he bought shares from fellow director Danny Fiszman, which brought his ownership to 20.5%. Kroenke also acquired 4,839 shares from the Carr family.

During this period, Kroenke faced competition from Red and White Holdings, a company co-owned by Russian billionaire Alisher Usmanov and London-based financier Farhad Moshiri. However, Kroenke expanded his ownership further by purchasing the shareholdings of Nina Bracewell-Smith, Danny Fiszman, and other board directors. These acquisitions elevated his shares to 66.64%.

Subsequently, Kroenke made an offer to acquire the remaining shares of the club. This included the shares owned by Red & White Holdings and the minority shareholders, which encompassed former players of the club and the Arsenal Supporters' Trust. In 2018, Kroenke successfully purchased the remaining stakes from Usmanov for £550 million, securing full ownership and becoming the sole shareholder of Arsenal.

Impact of Kroenke's ownership on the club

The Kroenke era at Arsenal has shown positive signs, despite the controversial opinions of some Arsenal fans regarding Kroenke's ownership abilities. Mikel Arteta, the current coach of Arsenal, has expressed his admiration for the Kroenke family, who are the owners of the club, following Arsenal's impressive start to the season. Arteta's team has accumulated six points from two games, making them one of only two teams in the Premier League with a perfect record.

In their quest to regain a spot in the Premier League's top four, Arsenal has invested £270 million ($319 million) in the last two summers. This expenditure has brought in notable players such as Ben White, Gabriel Jesus, and Oleksandr Zinchenko. By the end of the 2022/2023 season, Arsenal secured the second position in the Premier League table and made a return to the UEFA Champions League after a seven-year absence.

Impact of Kroenke's ownership on the club

However, the current owner of Arsenal has faced widespread skepticism among many of the club's fans. Since Kroenke first acquired shares in the club in 2007, Arsenal has been unable to secure the Premier League title or any major European trophies. This lack of success has led fans to question the ownership's strategies and long-term vision for the club, especially after becoming majority owners in 2018.

One of the most significant controversies surrounding the ownership was their involvement in the ill-fated European Super League in 2021. Despite finishing eighth in the season when the plans were revealed, Arsenal joined a group of elite European clubs in announcing their participation in this breakaway league.

This decision triggered widespread protests from fans, and eventually, nearly all the clubs involved withdrew their support, leading to the collapse of the proposed league. However, the fallout from the Super League debacle left a lasting stain on the relationship between many owners and their respective clubs, and Arsenal was no exception.

Arsenal Supporters' Trust: Shaping the Future of Arsenal Football Club

The Arsenal Supporters' Trust (AST) is a fan-led organization that plays a crucial role in the governance and decision-making processes of Arsenal Football Club. Since its formation, the AST has been dedicated to representing the interests of Arsenal fans, fostering transparency, and ensuring long-term sustainability for the club.

Formation and Purpose of the Arsenal Supporters' Trust

The Arsenal Supporters' Trust was established in 2003 as an independent, democratic organization to give Arsenal fans a unified voice in the club's affairs. It was formed by a group of passionate and committed supporters who recognized the need for fan representation and involvement in the decision-making processes at Arsenal Football Club.

The primary purpose of the Arsenal Supporters' Trust is to protect and enhance the interests of Arsenal fans, both present and future. The trust aims to achieve this by working collaboratively with the club's management, owners, and stakeholders to ensure transparency, accountability, and supporter involvement in key decisions that impact the club.

Their Role in the Club's Ownership Structure

One of the key areas where the Arsenal Supporters' Trust exerts its influence is in the club's ownership structure. As a significant shareholder, the trust holds shares in Arsenal Football Club, representing the interests of its members and the wider fan base. By having a stake in the club, the trust has a platform to advocate for the long-term stability and success of Arsenal.

Arsenal Supporters' Trust

The Arsenal Supporters' Trust actively engages with the club's board, executives, and majority owner to ensure that decisions made align with the best interests of the club and its supporters. Through constructive dialogue and engagement, the trust seeks to safeguard the club's heritage, protect its values, and secure a sustainable and prosperous future.

Influence on Decision-Making Processes

The influence of the Arsenal Supporters' Trust on decision-making processes cannot be understated. Through its active involvement and representation, the trust plays a pivotal role in shaping the future direction of Arsenal Football Club. They contribute to decision-making on matters such as ticket prices, stadium development, fan engagement, and strategic planning.

The trust acts as a critical bridge between the club's management and the fan base, ensuring that supporters' perspectives are heard and considered. They provide valuable insights and feedback on key issues, helping to maintain a strong bond between the club and its fans. The trust's influence has contributed to positive changes within the club, such as improved communication, enhanced matchday experiences, and greater fan involvement.

Other Shareholders and Board Members

Overview of Minority Shareholders

Minority shareholders hold a significant position within Arsenal's ownership structure, representing a diverse group of individuals and organizations. These shareholders possess a smaller portion of the club's shares compared to majority stakeholders, such as Stan Kroenke, who owns the majority stake in Arsenal. While their ownership percentage may be lower, minority shareholders still hold influence over important decisions through their voting rights and ability to voice their opinions at shareholder meetings.

Fan Shareholders: Arsenal's fanbase is renowned for its unwavering dedication and passionate support. To foster a sense of community involvement, the Arsenal Supporters' Trust (AST) was established, giving fans the opportunity to become shareholders. By investing in the club, these shareholders aim to safeguard the interests of the fanbase, ensuring their voice is heard in matters affecting the club's future.

Institutional Shareholders: Alongside individual shareholders, Arsenal's ownership structure includes institutional investors, such as investment firms, pension funds, and asset management companies. These entities hold shares in the club as part of their investment portfolios, seeking financial returns and capital appreciation. Although their primary motivation is financial, institutional shareholders can exercise influence by participating in shareholder meetings and engaging with the club's management.

Former Players and Staff: Another noteworthy category of minority shareholders at Arsenal consists of former players and staff members who have made significant contributions to the club over the years. These individuals often retain an emotional connection to the team and may invest in Arsenal as a means of preserving their legacy and maintaining ties to the club.

Key Figures on the Arsenal Board

The Arsenal board comprises influential individuals who bear the responsibility of guiding the club's strategic decisions, ensuring its sustainable growth, and upholding its values. Let's explore some key figures on the Arsenal board and their respective roles:

Stan Kroenke - Majority Owner and Chairman

Stan Kroenke

Stan Kroenke, an American billionaire entrepreneur, holds the majority stake in Arsenal and serves as the club's chairman. As the most prominent figure on the board, Kroenke possesses significant decision-making authority and provides strategic direction for Arsenal. His leadership and vision shape the club's long-term objectives and overall strategy.

Josh Kroenke - Director

Josh became a Director of the club's Board in December 2013. Additionally, he holds the position of Vice Chairman at KSE and KSE UK.

Josh Kroenke

Furthermore, Josh is currently the President of the Colorado Avalanche, who emerged as the Stanley Cup Champions in 2022, competing in the National Hockey League. He also serves as the President of the Denver Nuggets in the National Basketball Association. In addition to these roles, he acts as an Alternate Governor for the Los Angeles Rams, an NFL football team, and the Colorado Rapids, a Major League Soccer team.

Tim Lewis - Executive Vice-Chair

Tim Lewis

Tim Lewis has been providing advisory services to KSE since 2007 and assumed the position of Director on the Board in September 2020. In March 2023, he was promoted to the role of Executive Vice-Chair.

Director - Lord Harris of Peckham

Lord Harris

In November 2005, Lord Harris of Peckham was appointed to the board of Arsenal. Lord Harris, one of the UK's most enduring retailers, assumed control of his family's carpet business at the age of 15. He later established Carpetright in 1988 and remained a key figure until his retirement announcement in 2014.

Alongside his successful business career, Lord Harris is actively engaged in philanthropic endeavors. He demonstrates a strong commitment to supporting various charitable initiatives and projects aimed at empowering young individuals to realize their full potential.

Other Corporate Information

Auditor

Deloitte LLP
Chartered Accountants
London EC4A 3BZ

Bankers

Barclays Bank plc
1 Churchill Place
London E14 5HP

Incorporation

Arsenal Holdings Limited is incorporated in the UK and is subject to the Companies Act 2006.

Ownership

The Arsenal Football Club plc is a 100% owned subsidiary of Arsenal Holdings Limited. Arsenal Holdings Limited is 100% owned by KSE UK INC. KSE UK INC is 100% owned by E. Stanley Kroenke.

FAQ - Who owns Arsenal Football Club

• What is Arsenal Football Club's nickname?
  Arsenal is commonly known as "The Gunners."
• When did Arsenal achieve an unbeaten league campaign?
  Arsenal accomplished an unbeaten league campaign in the 2003-2004 season.
• Who owns Arsenal FC now?
  Current Arsenal's owner is Stan Kroenke.
• Is Arsenal a private company?
  The Gunners' holding company, Arsenal Holdings Limited, re-registered as a private company shortly after Kroenke's full takeover.
• What is the purpose of the Arsenal Supporters' Trust?
  The Arsenal Supporters' Trust aims to protect and enhance the interests of Arsenal fans by working collaboratively with the club's management and owners to ensure transparency, accountability, and supporter involvement in key decisions.
• How can I get involved with the Arsenal Supporters' Trust?
  To support the trust and participate in their initiatives, you can visit their website or follow them on social media to stay updated on their activities and membership opportunities.