Arsenal: 5 deciding factors facing Spotify CEO Daniel Ek’s takeover

Arsenal fans are starting to dream. Protesting against the Kroenke ownership outside the Emirates Stadium on Friday, Spotify billionaire Daniel Ek tweeted out that he would be interested in a takeover of the club, one that started out as a fans’ fantasy but has progressed into genuine intent.

The relationship between Arsenal supporters and the KSE ownership has never been close-knit.

Throughout American billionaire Stan Kroenke’s tenure there has been a strong disconnect between the fanbase and those at the top seat. From having held a majority share for a decade and then taking complete ownership in 2018, the decisions along the way have caused widespread disgruntlement that has since reached boiling point.

Forming part of the Premier League breakaway to join the controversial Super League was the icing on a rotten cake, one that rubber stamped the overriding consensus that the owners don’t care one iota for those whose lives are tied to the club for life.

More from Pain in the Arsenal

• 3 standout players from 1-0 victory over Everton
• 3 positives & negatives from Goodison Park victory
• Arsenal vs PSV preview: Prediction, team news & lineups
• 3 talking points from Arsenal’s victory at Goodison Park
• Mikel Arteta provides Gabriel Martinelli injury update after Everton win

5 deciding factors facing Spotify’s Daniel Ek in Arsenal takeover from KSE

For years the feeling that Arsenal is not the fans’ club anymore has been evident. It truly is not.

Thus, the fast moving nature of Ek’s proposed takeover, one that has garnered the support of club legends Thierry Henry, Dennis Bergkamp and Patrick Vieira, has offered a glimmer of light at the end of an increasingly dark tunnel.

Ek, a lifelong Arsenal fan, backed by three ‘Invincibles’, feels almost too good to be true. Could a successful takeover then prompt greater fan engagement? A say in the boardroom? Actual care for those whom Arsenal means so much in their lives?

Whatever the outcome, the ball is in motion. Ek’s bid is in the pipeline and due to be submitted ‘within days’, leaving supporters with no fingernails left as they wait anxiously for the outcome. But it won’t be a simple transaction. There some deciding factors facing the Spotify billionaire that could derail, or kick-start, his mission.

Daniel Ek Has the Money to Buy Arsenal

This helps.

Forbes has Ek being worth £3.4bn, while Arsenal are listed at being worth £2bn. That doesn’t mean they’ll sell at that price obviously – even if the mooted £1.8bn incoming offer would fetch them a profit – but they’ll be sure to play hard ball, if any ball at all.

The Swede has enough money to lead a consortium to buy Arsenal, and would have little problem raising the funds.

Whether he opts to do so by borrowing money against his 16.75% stake in Spotify, sell a portion of his holdings or find a partner is what is interesting. As it is he is flying the flag on his own with the £1.8bn offer incoming, although if KSE continue to push for more he could potentially head down other routes, however unlikely.

Bottom line, he has the money and he means business.

Does Stan Kroenke Even Want to Sell?

It may seem obvious, but for all the willingness of one person to purchase the club from the American’s hands, there has to be a similar desire to sell from the other party. A fairly fundamental aspect of any negotiation.

Based on what Josh Kroenke said within the last week, the answer is no.

"“We have no intention of selling, I believe we are fit to carry on in our position as custodians of Arsenal. We were put in a very difficult position by forces outside of the club,” he said."

Of course, it goes without saying that any owner open to selling their club would not say so in the public sphere. It would immediately damage the value, and by a significant amount.

But then based on Stan Kroenke’s position throughout his time at the club, this has been an unwavering standpoint. One need only look at Alisher Usmanov’s relentless attempts to purchase his shares falling on deaf ears. In the end he caved in and sold his shares the other way.

What may also impact a potential sale is that this is being played out in the public eye. ‘Silent Stan’ would not have appreciated Ek tweeting about his desires and would rather have dealt with this move in private, thus he could either be pressured more into selling now, or less willing given it isn’t the way he negotiates.

KSE Don’t Care if Fans Protest

It’s not something any supporter wants to hear, especially those who brilliantly protested in their thousands ahead of the Premier League clash with Everton, but the truth is that they simply don’t care.

Call them thick-skinned or immoral robots programmed without human emotion, it doesn’t really matter. Over in American Stan Kroenke earned the title of the “most hated man” in St. Louis by the Washington Post. This is nothing new.

Moving the St. Louis Rams all the way over to Los Angeles, where a $6bn stadium was constructed to house the team, he has no friends in Missouri. Supporters in the city still chant ‘Kroenke sucks’. It’s somewhat more R-rated in the UK.

All the criticism, all the banners, all the chanting and all the pure hatred doesn’t affect them.

Even less so considering they don’t even live in the UK, let alone London. All they’ll see is what appears on the news, and that is working on the basis that they even turn the television on in the first place.

That doesn’t mean fan protest hasn’t had an impact, though. Ek’s tweet came out mid-demonstration, implying he was fully aware of events outside the Emirates, if not watching them unfold on the news. As an Arsenal fan he will appreciate the outrage, and if any good comes of his proposed takeover, then the fans will certainly have had some impact.

Arsenal Legends Henry, Bergkamp, Vieira and Wright Being Involved

When the news broke of the ‘Invincibles’ trio getting involved it caused supporters to take real notice. Not because these three have the financial means to act as partners in any deal, but because Ek having the backing of figures who are woven into the very fabric of this club adds goodwill and, importantly, pressure.

Going back to an earlier point, the Kroenke’s do not care. They really couldn’t give a rat’s ass, to use an American term.

This, however, is different. It is all well and good shunning fan disgust, but when there is an undoubtedly keen bidder entering the fray with the backing of three of the biggest names in Arsenal’s history, that goodwill could change the outlook. This is a serious consortium.

How big of a say that may be remains to be seen but with prominent figures such as Ian Wright, who features in close to every promotion the club have, making his feelings known it shows even cracks are appearing from within the club.

Equally, the Kroenke’s will not want to show weakness. This is business, after all, and their tough exterior will have chinks in it should they opt to cave in to the desires of others.

Whatever deal may come to fruition, will be a tough one to execute.

Super League Collapse Could Prompt Exit Route

The Super League was a total unmitigated disaster. Plans to breakaway and form this division were done with greedy, soulless intentions, but crucially, pretty embarrassing planning.

Key elements, including the backing of fans and supporters, saw the move collapse within 48 hours, one that was designed to save Europe’s big-hitters from their own financial ineptitude. That last point being key.

ESL clubs were due incredible financial windfalls year upon year, monetary gain that would be gratefully accepted in north London, where the losses are piling up. Arsenal already posted losses of £47.8m for the 2019/20 season, with chief executive Vinai Venkatesham since confirming to supporters that the figures for this season will see the club lose well in excess of £100m.

That number is more likely to push £200m.

The Kroenke’s bought Arsenal with the intention of making money, of course, something they currently are not. With the possibility of no European football next season, and indeed for seasons beyond that, money will grow increasingly sparse.

And, as per ESPN, KSE could have been looking to join the Super as ‘the final part of an exit strategy to sell the club’. With no fresh revenue on the horizon, a sale may finally begin to appeal. Very much a ‘get out now while you can’ scheme.

Any talk of having ‘no intention’ of selling would therefore be a smokescreen.