Dein sells Arsenal stake to Russian billionaire

Source: Exec Digital UK

Date :31/08/2007 09:01:58

Ex-Arsenal vice-chairman David Dein has sold his 14.5 percent stake in the club to a firm co-owned by a Russian billionaire.

The involvement of Alisher Usmanov, who paid £75 million for the holding, adds to the mounting pressure on the club's board to give in to a takeover.

As part of the deal, Mr Dein has been named chairman of the firm, Red & White Holdings, allowing him a way back into Arsenal.

Mr Dein had made an acrimonious departure from the club when he left the board after it failed to back his plan for Arsenal to be taken over by American Stanley Kroenke.

Mr Kroenke, a US tycoon, has been linked with a potential takeover of the club after building up a 12.19 percent stake in the club.

He was among the favourites to buy Mr Dein's shares.

Maximising revenue

Mr Usmanov's firm, Red & White Holdings, is co-owned by London-based investor Farhad Moshiri.

It said it wanted to up its stake in Arsenal over time, but it stressed there were no plans for an imminent increase in its holding.

Mr Moshiri said the new investment would help it maximise the club's revenue streams.

"Arsenal is a great club with huge potential and we look forward to increasing our stake and exploring ways to help support the future development of the club for the benefit of all fans and shareholders," he said.

Red & White said it felt it crucial that manager Arsene Wenger stayed at Arsenal as he was "vital to the future success of the club".

Mr Dein, a close freind of Mr Wenger, said the club needed people or consortia "prepared to invest previously unimaginable sums aimed at winning the game's biggest prizes".

He added was "delighted" to have found investors who shared his vision for the club.

"I have always had the best interests of Arsenal at heart. I've had a love affair with the club since I was six," he said.

"My ambition remains to play an active role in Arsenal again. My immediate intention is to work with others to provide the financial resources necessary to turn the vision into reality.

"I firmly believe that the involvement of Red & White with a significant stake and the long-term commitment of Arsene Wenger are absolutely the best outcome for the club, fans and shareholders alike."

The Arsenal deal follows a flurry of foreign investment in Premier League sides in recent years.

Russian oil billionaire Roman Abramovich bought Chelsea in 2003 while the champions, Manchester United, are owned by the American businessman Malcolm Glazer.

American sports entrepreneurs George Gillet and Tom Hicks took control of Liverpool in February.

August 31 2007