29 Julai 2016

How Stan Kroenke, Arsenal's billionaire owner, is spending big and becoming sport's most powerful man


  • Owns LA Rams, Colorado Avalanche, Denver Nuggets and Colorado Rapids
  • Moved his NFL franchise, the Rams, from St Louis to Los Angeles
  • Decision was understandably unpopular in his native Missouri
  • Since taking over Arsenal in 2012, they have won two FA Cups
  • Owned the Rams since 2010; their last winning season was in 2003
  • Seldom speaks publicly and does not seem comfortable in the public eye
Through the tears in a green tarpaulin stretched around a wire fence, a glimpse can be stolen into Stan Kroenke’s grand future.

It is not much to look at. An expanse of dry earth, featureless but for rubble piles, the art deco entrance hall of the old casino and the grandstand of the Hollywood Park race track.

Dozens of bulldozers and dumper trucks are changing the landscape. Sewers are being connected as the site is readied for October when they will dig a bowl 100 feet deep.

In the clear sky another aeroplane roars in to land at Los Angeles International Airport.

Some believe this project and this 298-acre plot, twice the size of Vatican City, has already transformed Stan Kroenke into the most powerful man in the world of sport.

Stan Kroenke moved the Rams from St Louis back to Los Angeles
Stan Kroenke moved the Rams from St Louis back to Los Angeles

Kroenke's new Rams stadium in Inglewood is set to open its doors in August 2019
Kroenke's new Rams stadium in Inglewood is set to open its doors in August 2019
 
Arsenal will touch down in LA on Friday. Usually they tour in the Far East. This time it is North America.
Having played in the MLS All Stars game in San Jose, they travel down the California coast to continue pre-season preparations against Chivas de Guadalajara at the StubHub Center, home to LA Galaxy, in Carson, LA.

Kroenke may turn up to watch. Arsenal can never be sure until the last minute but if there is a chance he can make it, seats and parking spaces will be reserved for him, friends and family.

He owns property at nearby Malibu and much of his attention has been trained here since January when he secured the right to move his NFL franchise, the Rams, from St Louis to Los Angeles.

The stadium he is building in Inglewood, Los Angeles County, promises to be the best in the world. At an estimated $3billion (£2.28bn) it will also be the most expensive.

It is, as they like to say out here, a game-changer; a seismic shift in American sport by Kroenke who has achieved what so many others, among them Magic Johnson and Tom Cruise, failed to accomplish.

Stan had the plan. Not only that. He also had the cash and the cut-throat political mind to win a three-way fight with the San Diego Chargers and the Oakland Raiders, who also wanted to move their NFL franchises to LA.
They proposed to share a site in Carson where Arsenal play on Sunday.

It was bitter and controversial but Kroenke won and in September the Rams will start a season in Los Angeles after 21 years away.

For three years, they will hire the crumbling Memorial Coliseum in LA and move to Inglewood in 2019, a return for elite sport to an area near the Forum, where the Lakers used to play basketball and the Kings once played ice hockey.
‘Five years ago, the city of Inglewood was teetering on the verge of cash-flow bankruptcy,’ said Mayor James T Butts, gazing across the streets from his leather chair on the ninth floor of City Hall. 

The Rams will inhabit the historic LA Memorial Coliseum for the next three seasons
The Rams will inhabit the historic LA Memorial Coliseum for the next three seasons

The franchise vacated the Edward Jones Dome, their home since 1985
The franchise vacated the Edward Jones Dome, their home since 1985

Then the Forum was revived as a concert venue thanks to $100m invested by Madison Square Garden. And then came Kroenke.

‘Football has been gone from this region for over 20 years,’ said Butts. ‘During that time there were 21 proposals to bring NFL teams back to Los Angeles and none was successful.

‘When the Lakers and Kings departed in the late 1990s and the racetrack, which used to draw 38,000-41,000 four to five days a week, dwindled to crowds of a thousand or less, Inglewood lost what made us the City of Champions — which is our logo.

‘It had a detrimental impact on community pride and the image of the city and during those years there was high crime.’
Crime has fallen for five successive years, property prices are soaring and business flooding in.

‘In Inglewood, Stan Kroenke is quite the hero,’ said Butts. ‘Here’s a multi-billionaire who invested in our city and in April he came to my State of the City address with Jerry Jones (owner of Dallas Cowboys) and they explained the project and the investment in the community.

‘He definitely has hero status and on a personal level from the times I met him I knew that, one, he was a man of his word and, two, people don’t realise it but he has a great sense of humour.’

With last season's Offensive Rookie of the Year Todd Gurley (left) and No 1 overall pick Jared Goff, there is hope that the Rams will entertain the famously fickle LA audience
With last season's Offensive Rookie of the Year Todd Gurley (left) and No 1 overall pick Jared Goff, there is hope that the Rams will entertain the famously fickle LA audience

 
Unsurprisingly, this has not been quite so well received in Kroenke’s home state of Missouri, where accusations still fly about how it was allowed to happen.

If Kroenke is the white knight in the City of Angels he is the devil incarnate in St Louis, a city left without an NFL team, little prospect of attracting one and yet with a stadium to pay for.

The Edward Jones Dome was built using public funds in 1995 to house the Rams as they abandoned Los Angeles.
This was Kroenke’s door opening into the world of sports ownership.

Enos Stanley Kroenke was born and raised in Missouri, named after two St Louis Cardinals Hall of Famers (Enos Slaughter and Stan Musial) and had married into Wal-Mart millions by the time he was invited to save the failing bid of a group trying to bring NFL to St Louis in 1993.

Kroenke could not save the bid — instead, the expansion teams went to Jacksonville and Charlotte — but his interest had been caught.

Two years later, when they eventually did move to St Louis, he paid $80m for 40 per cent of the Rams with a guarantee on the rest if it went up for sale. It did in 2010 and he spent $450 on the other 60 per cent.

At the time, Kroenke told the St Louis Post-Dispatch: ‘I’ve been a Missourian for 60 years. People in our state know me. People know I can be trusted. People know I am an honourable guy.’

St Louis still owe $36m on a loan taken out to finance the Dome and will be minus the $500,000 annual rent from the Rams. It is not scheduled to be repaid until 2021.

The Rams' last winning season was in 2003, with head coach Jeff Fisher in charge since 2012
The Rams' last winning season was in 2003, with head coach Jeff Fisher in charge since 2012

Arsene Wenger guided Arsenal to FA Cup wins in 2014 and 2015; his last title was in 2004
Arsene Wenger guided Arsenal to FA Cup wins in 2014 and 2015; his last title was in 2004

Kroenke, with an estimated personal wealth of $8bn, has no obligation to settle the bill and has shown little appetite to do so.

It did not pass unnoticed, however, when, in February, as soon as the NFL confirmed the move, he bought a 520,000-acre ranch in Texas (an area bigger than LA) which had been on the market at $725m.

Scott Rosner, a sports business professor at the Wharton School of the University of Pennsylvania, divides the sports tycoons into two categories, between ‘win maximisers’ in it for ego or reflected business benefits, and ‘profit maximisers’ in it for the money.

Roman Abramovich and Sheik Mansour would fall into the first group. Kroenke definitely sits in the second category.
‘If you were Stan Kroenke, where would you rather be?’ said Rosner. ‘St Louis, where the market for your sport has historically been average? Or Los Angeles, the second biggest market in the USA with enormous potential for NFL?
‘You go to LA. You’d be a fool not to. Financially, he is going to do very well out of this. If he wins, he’ll do even better but I don’t think that’s his prime motivation.

‘This is all about the money. It was an opportunity long awaiting exploitation. It just needed the right owner with the right plan and political sway in the NFL to accomplish it. Kroenke had everything.

‘He is putting a tremendous amount of skin into this, close to $3bn. It is not for the faint-hearted or the shallow of pocket. He is not faint-hearted and does not have shallow pockets.

‘If it was about sentiment or caring what people in his home state think we would still be calling them the St Louis Rams.
‘Billionaires become billionaires for a reason. I don’t think he’s a bad person but you must have a degree of ruthlessness to become one of the wealthiest men in America. I don’t know how much he cares about being loved. I’m not sure that’s what motivates him. He’s not an attention seeker.’

By his employees, he is viewed as a demanding but fair boss. In the States, he is not the absentee owner he is perceived to be in North London.

Arsenal fans protest against Kroenke, the largest shareholder of the club
Arsenal fans protest against Kroenke, the largest shareholder of the club

It is rare for 'Silent' Stan to speak, let alone attend an Arsenal game
It is rare for 'Silent' Stan to speak, let alone attend an Arsenal game

Even so, it is rare for Kroenke to speak publicly. He does not seem comfortable in the public eye but does venture occasionally into the spotlight.

A speaking appearance, earlier this month, at the Variety-Sports Illustrated Entertainment Summit in Los Angeles, will not have changed the popular image many Arsenal fans have of their owner.

‘Rams are playing the Giants in London this season, Arsenal is playing over here and the NBA is playing games in London,’ said Kroenke.

‘The upshot is that sports is so global, and within the last few years, and that’s where I think people are focusing for growth.

‘Arsenal, two years ago, was the most popular what they call football team in Europe, what we call soccer team in China.
‘We’ve been to Indonesia, Malaysia, Vietnam and China, touring and playing in the last two years.
‘TV revenue growth in that particular sector for the English Premier League is the fastest growing area we have.
‘LA is so important for the NFL. Some people call it the gateway to South America. Some people certainly call it the gateway to Asia.

‘It’s extremely important if growth is going to occur as most people see it occurring in the coming years. LA is extremely important that way.’

A three-year-old's on Rams owner Stan Kroenke moving team
Loaded: 0%
Progress: 0%
0:00
Play
Mute
Current Time0:00
/
Duration Time3:20
Fullscreen
Need Text
Arsenal's Mohamed Elneny and Joel Campbell train at San Jose State University
Arsenal's Mohamed Elneny and Joel Campbell train at San Jose State University

Players are asked questions during their tour of the west coast of the US
Players are asked questions during their tour of the west coast of the US

Confirmation, if needed, that it is about profit and not sporting glory where Kroenke is concerned.
Although, Kroenke added: ‘You have to make it make sense financially but you learn over the years that it’s no fun if you don’t win.’

He would know. In six seasons under his total ownership, the Rams have yet to return a winning season. In the end, the fans turned their backs on him and he barely spoke to them.

Arsenal, in five years since he took control, have won the FA Cup twice.

In April, the LA Rams traded up from 15th for the No 1 draft pick, a quarterback called Jared Goff who has signed a four-year deal worth $27.9m. This was interpreted as a sign of ambition.

Next time Arsenal tour in the USA, they could be back in LA at Kroenke’s new 80,000-seat stadium with its electronic roof beaming messages to those in the sky.

‘He owns the Arsenal, why wouldn’t he bring them here?’ said Mayor Butts. ‘He can do anything he wants.
‘The Super Bowl will be here in 2021, we have a good shot if LA gets the 2024 Olympic Games for being the site for the opening ceremonies. We could end up with basketball here before 2024. The potential is limitless.

‘Now you got it.’

27 Julai 2016

Juventus sign Gonzalo Higuain after triggering £76m release clause for Napoli striker

  • The Argentine's transfer fee will be paid over two instalments by Juventus
  • Gonzalo Higuain will earn £6.3million after tax per year with the Italian club
  • Napoli have had a bid for Inter Milan striker Mauro Icardi rejected 
Juventus have signed Gonzalo Higuain in a £76m five-year deal after triggering his release clause with Napoli.
The transfer fee will be payed in two instalments, with the 28-year-old Argentine earning £6.3million after tax per year.
A statement on juventus.com read: 'Juventus Football Club can today confirm that it has purchased the registration rights of Gonzalo Higuain for 90million euros, payable in two financial years. 

Gonzalo Higuain has signed for Juventus after the club triggered his £76m release clause with Napoli
Gonzalo Higuain has signed for Juventus after the club triggered his £76m release clause with Napoli

The 28-year-old will earn £6.3million annually after tax and his fee will be paid to Napoli in two instalments
The 28-year-old will earn £6.3million annually after tax and his fee will be paid to Napoli in two instalments

WORLD RECORD TRANSFER FEES 

£86m Gareth Bale - 2013 (Tottenham to Real Madrid) 
£80m Cristiano Ronaldo - 2009 (Manchester United to Real Madrid) 
£71.5m Neymar - 2013 (Santos to Barcelona)
£65m Luis Suarez - 2014 (Liverpool to Barcelona)
£63m James Rodriguez - 2014 (Monaco to Real Madrid) 

'The player has agreed a five-year contract with the club.'
A statement from Napoli read: 'Juventus Football Club has exercised the buy-out clause for the acquisition of Gonzalo Gerardo Higuain.'
Napoli have had a bid for Inter Milan's Mauro Icardi rejected with Inter saying he is not for sale.
The arrival of Higuain is intended to deal with the fact that Juventus have already lost Alvaro Morata to Real Madrid this summer, with the Spanish side activating a buy-back clause in the deal that took him to Turin in 2014.
Juventus are also likely to lose Paul Pogba this summer. Manchester United are expected to complete a £110m move for him before the season begins.
The signing of Higuain does not mean that Pogba is any more likely to move to Old Trafford. Juventus are wealthy by their own right and have funds to spend on the striker.

Higuain's arrival will help Juventus deal with the loss of Alvaro Morata, who joined Real Madrid this summer
Higuain's arrival will help Juventus deal with the loss of Alvaro Morata, who joined Real Madrid this summer

HIGUAIN CAREER STATS 

River Plate (2005-06) 35 games (13 goals)
Real Madrid (2007-13) 145 (62)
Napoli (2013-)  140 (89)  
International
Argentina 63 (30)
Major honours
La Liga: 2007, 2008, 2012
Copa del Rey: 2011
Coppa Italia: 2014 

Napoli club president Aurelio De Laurentiis suggested Higuain would be betraying himself if he were to leave the club this summer.
'I haven't spoken to the player,' De Laurentiis told reporters. 'The only offer I've had was from the president of Atletico Madrid last month and I told him we couldn't do anything.
'He offered €60million (£50m) plus two or three players and I said no. 
'Even if Juventus were to come into the picture, they need Higuain's consent.
'Would he be betraying Napoli? It would be a much bigger betrayal of himself.
'You don't go to the Napoli curve (hardcore fans), sing songs of love of the club and then just go somewhere else. It would be absurd.

Napoli's president Aurelio De Laurentiis said that Higuain would betray himself by leaving the club
Napoli's president Aurelio De Laurentiis said that Higuain would betray himself by leaving the club

'I'm not interested in his brother's [Higuain's brother and agent, Nicolas] strategy.
'The fact that Napoli have qualified for Europe seven years running, with dignity, is a clear indication that we are good enough.
'With us, Higuain has gone back to being what he was when he played for Real Madrid.' 

24 Jun 2016

They just keep getting bigger and bigger! World's largest superyacht with 41,000 sq ft of living space and TWO helipads is delivered to Russian billionaire

  • Dilbar is owned by Alisher Usmanov, 62, a Russian billionaire who is one of Arsenal FC’s majority shareholders 
  • The massive vessel has set a record for gross tonnage of 15,917 tons and is the world's fourth longest superyacht 
  • Many details remain a secret, but Dilbar has nearly 41,000 square feet of living space and two helipads
The seas around Monaco and other holiday hotspots for the super-rich are about to get even more crowded with the delivery of the world’s fourth longest superyacht.
Owned by one of Arsenal FC’s majority shareholders, Dilbar measures 156 metres (511.8ft) and is the largest yacht in the world in terms of internal volume, with a gross tonnage of 15,917 tons.
She was custom built for 62-year-old billionaire Alisher Usmanov, whose reported net worth of £9bn makes him one of the richest citizens of Russia.

Dilbar, the world's fourth largest superyacht and the biggest in terms of volume, has been delivered to her owner after sea trials
Dilbar, the world's fourth largest superyacht and the biggest in terms of volume, has been delivered to her owner after sea trials
The massive superyacht was custom built for 62-year-old billionaire Alisher Usmanov, who owns a majority stake in Arsenal FC
The massive superyacht was custom built for 62-year-old billionaire Alisher Usmanov, who owns a majority stake in Arsenal FC
Uzbek-born Usmanov has a net worth of more than $13bn (£8.7bn), making him one of the richest citizens of Russia
Uzbek-born Usmanov has a net worth of more than $13bn (£8.7bn), making him one of the richest citizens of Russia
Dilbar has two helipads – one on the sundeck and one on the bow – and a small sitting area and a swimming platform at the back
Dilbar has two helipads – one on the sundeck and one on the bow – and a small sitting area and a swimming platform at the back
Dilbar was delivered to Usmanov this month after undergoing sea trials, and has been spotted in recent weeks in Gibraltar and France
Dilbar was delivered to Usmanov this month after undergoing sea trials, and has been spotted in recent weeks in Gibraltar and France
Dilbar was built by Lurssen Yachts at its shipyard near Bremen, Germany over 52 months and underwent sea trial earlier this year
Dilbar was built by Lurssen Yachts at its shipyard near Bremen, Germany over 52 months and underwent sea trial earlier this year
Uzbek-born Russian billionaire Alisher Usmanov made his fortune through investments in metals, media, telecommunications and sport
Uzbek-born Russian billionaire Alisher Usmanov made his fortune through investments in metals, media, telecommunications and sport
Uzbek-born Usmanov is the world’s 73rd wealthiest person with a recent net worth of $13.4bn, according to Forbes.
The self-made billionaire made his fortune through investments in metals, media, telecommunications and sport, including a 30.04 per cent controlling stake in Arsenal FC.
Usmanov ordered Dilbar, which has room for dozens of guests and crew, to replace his other superyacht, a 377ft vessel which was previously called Dilbar and is now known as Ona.
The build cost for the new Dilbar has not been disclosed, but estimates have put it near £350million.
The superyacht has nearly 41,000 square feet of living space, a diesel-electric power plant and a cruising speed of 22.5 knots
The superyacht has nearly 41,000 square feet of living space, a diesel-electric power plant and a cruising speed of 22.5 knots
As is the case with many new superyacht builds for the super-rich, details of Dilbar’s interior and amenities remain a secret
As is the case with many new superyacht builds for the super-rich, details of Dilbar’s interior and amenities remain a secret
Dilbar’s gross tonnage has topped those of the world’s three largest superyachts – Azzam, Roman Abramovich’s Eclipse and Dubai
Dilbar’s gross tonnage has topped those of the world’s three largest superyachts – Azzam, Roman Abramovich’s Eclipse and Dubai
Built over 52 months, Dilbar’s exterior was designed by Monaco-based Espen Oeino. Her interior was done by London's Winch Design
Built over 52 months, Dilbar’s exterior was designed by Monaco-based Espen Oeino. Her interior was done by London's Winch Design
Dimitri Semenikhin, of Yacht Harbour, said the majority of the living space is indoors, giving Dilbar the largest interior volume of any yacht
Dimitri Semenikhin, of Yacht Harbour, said the majority of the living space is indoors, giving Dilbar the largest interior volume of any yacht
Usmanov ordered Dilbar to replace his other superyacht, a 377ft vessel which was previously called Dilbar and is now known as Ona
Usmanov ordered Dilbar to replace his other superyacht, a 377ft vessel which was previously called Dilbar and is now known as Ona
The build cost for the new Dilbar (pictured in the French Riviera) has not been disclosed, but estimates have put it near £350million
The build cost for the new Dilbar (pictured in the French Riviera) has not been disclosed, but estimates have put it near £350million

WORLD'S LONGEST SUPERYACHTS

  1. Azzam - 592.5ft
  2. Eclipse - 533ft
  3. Dubai - 531.5ft
  4. Dilbar - 511ft
  5. Al Said - 508.5ft
  6. Topaz - 483ft
  7. Prince Abdulaziz - 482ft
  8. El Horriya - 478ft
  9. Sailing Yacht A - 468.5ft
  10. Yas - 462.5ft
As is the case with many new superyacht builds for the super-wealthy, details of Dilbar’s interior and amenities remain a secret.
Her design – which offers very little outdoor space and is geared towards privacy– offers very few hints.
Dilbar, built by Lurssen Yachts at its shipyard near Bremen, Germany, has two helipads – one on the sundeck and one on the bow – and a small sitting area and a swimming platform at the back.
Inside, it has nearly 41,000 square feet of living space for her guests and owner, said Dimitri Semenikhin, of Yacht Harbour.
He said: ‘Yacht projects of this scale never fail to impress, especially when Lurssen is involved.
‘Dilbar is constructed in such a way that even through helicopter photo shoots, none of its features can actually be seen other than her two helipads.
‘Although there are some outdoor spaces on the yacht, the majority of the living space is located indoors, which has led to Dilbar having the largest interior volume of any yacht ever built.’
He said the gigantic yacht has a diesel-electric power plant and a cruising speed of 22.5 knots (just under 26mph).
Images captured by photographer Julien Hubert show the massive yacht dwarfing other vessels while at port in the French Riviera last week.
Built over 52 months, Dilbar’s exterior was designed by Monaco-based Espen Oeino, while her interior was done by London-based Winch Design.
Dilbar’s gross tonnage tops Al Said's 15,850 tons and Azzam's 13,136 tons, said Semenikhin.

FOLLOW THE MONEY: NEARLY HALF OF THE WORLD'S SUPERYACHTS ARE OWNED BY AMERICANS AND BRITONS

Serene (top), the world's 14th largest superyacht, at 439ft, was the largest to exchange hands last year at an undisclosed price
Serene (top), the world's 14th largest superyacht, at 439ft, was the largest to exchange hands last year at an undisclosed price

While they’re usually associated with Russian oligarchs and Middle Eastern royalty, nearly half of the world’s superyachts are owned by extremely wealthy Americans and Britons, a recent study found.
Multimillion-pound price tags and steep upkeep costs make ownership an incredibly exclusive club, with the first-ever report on luxury yachts revealing that there are just 4,476 in the world.
Of those, 33 per cent of owners are from the US and 11 per cent are from Britain.
In third place, Italy is home to five per cent of all owners, followed by Australia (four per cent) and Russia (three per cent), said the report from London-based yacht management firm Camper & Nicholsons and London-based Wealth-X, which analyses the spending habits of the super-rich.
In 2015, the world's owners spent a combined $22bn (£15.2bn) to operate their yachts.
An estimated $2.68bn (£1.8bn) was spent on sales in 2015, down 18 per cent on 2014’s figures largely due to the US dollar’s strength against the euro. However, orders increased slightly to 166.
The largest yacht that exchanged hands in 2015 was the 133.9-metre (439ft) Serene, the 14th largest superyacht in the world.
It was originally owned by Russian tycoon Yuri Scheffler and was rented by Microsoft head Bill Gates, the world’s wealthiest person, in 2014.
The report found that the average value of a superyacht – defined as a vessel measuring 30 metres (98ft) or more – has dropped to $10million (£7million) from around $16million (£11.1million) in 2011, and the average length is 41 metres (134ft).
The largest superyacht in the world, the Azzam, owned by United Arab Emirates President Sheikh Khalifa bin Zayed Al Nahyan, is 180.6 metres (592.5ft).
The report is the first of its kind on the world’s one per cent and their taste for luxury vessels.
Like private jets, superyachts are one of the ultimate symbols of fame and fortune, and a flashy way to flaunt one’s wealth in places such as the Mediterranean or Caribbean.
However, a generation of new and younger owners is setting new trends with a desire for rare and tailored experiences to confirm their high status, the report said.
While the Mediterranean and Caribbean are traditional superyacht destinations, owners are increasingly looking to visit exotic places such as the Galapagos Islands, Asia or Antarctica, meaning the demand for ice-breaking hulls and long-range capabilities is on the up.
They are also fitting their floating palaces with gyms, spas, swimming pools, cinema rooms and brighter open-plan interiors, and bringing personal trainers, nutritionists, therapists and other professionals with them.
In terms of water toys, personal watercraft no longer cut it, as owners want the latest gadgets, including skibobs and hoverboards.
The report analysed data from 211,000 people who have a minimum net worth of $30million (£20.8million).
They account for 0.003 per cent of the world’s population and have a collective net worth of nearly $30trillion (£20.8trillion). 

DUIT