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Monthly Archives: January 2012

Arsenal Holdings plc

Arsenal FC is particularly different in their ownership structure from the other clubs of English Football. The club is owned by their parent company which is called Arsenal Holdings plc and the reason they are different from other clubs is the fact that only a few shares of the club exist and that too, are not traded frequently.

The parent company of the club of Arsenal, Arsenal Holdings plc, completely, owns 12 subsidiary companies.  They function is a unique way as they are a public limited company which is non-quoted. The club has only issued a total of 62,217 shares up till now and they too are not traded publicly on the stock exchanges. Rather, they are traded on a specialist market infrequently.

Another noteworthy aspect about the club is the fact that up until 2007, they were owned by two families only. The ownership has passed on through the generations of the Hill-Wood and Bracewell-Smith families but after 2007, the club has been able to attract considerable outside interest. The biggest acquirers of the shares of Arsenal have been two rival tycoons.

Perhaps, it is the rivalry of the two that has sparked off the trading of the shares of the club but this fact can’t be denied that the profitability of Arsenal has increased remarkably in recent times. This major reason for this increase in profitability is the remarkable increase in revenue from the sale of Arsenal Tickets.

Arsenal has been able to achieve this increase in ticket sales because of their new stadium. They moved to Emirates stadium in 2006 which has a seating capacity of around 60,000. This was a major improvement from their previous ground at Highbury, Arsenal Stadium, which had a seating capacity of around 38,000. This was a major improvement if you take in account that the seating capacity increased by a staggering amount of 57%. This clearly reflected in the sale of Arsenal Tickets which already had a huge potential of improvement, thanks to their large fan base.

As a result of the increase in profitability of Arsenal, it can be said that it became a hot investment.  The American tycoon, Stan Kroenke owns around 67% shares of the parent company of the club. On the other hand, his rival, Alisher Usmanov who is a Russian-Uzbek tycoon has around 29% ownership of the parent company of the club.

The coach of Arsenal, Arsene Wenger, has played an important part in the overall success of the club. He has been forced to handle the club on an increasingly limited budget especially because of their new stadium. This restricted him from making big signings and he had a difficult time to recuperate the team after the legends of Arsenal like Vieira, Bergkamp, Pires, Ljungberg, and Thierry Henry, either retired or moved away.

Arsene Wenger should be commended for the way he has developed the youth and worked with the players that he had to develop them into world class performers. The most notable name here will be that of their captain, Robin van Persie.

The young captain of Arsenal has led his team from the front and has been instrumental in their fight back after having a dismal start to the season. His scoring off 35 goals in 36 games in the year of 2011 sets him up as the top candidate for the footballer of the year.

Certainly, the sale of Arsenal Tickets have benefitted from stars like these. Also, the fans of Arsenal are regarded as one of the most loyal fans in the world as they have supported their team through thick and thin. Such ardent following translates into heavy revenues for the business tycoons and this is perhaps the biggest reason for their growing interest in the club.

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Posted by on January 18, 2012 in Uncategorized