The founding principles of the AST are set out in detail on this website and in its consitition, but as times change and different challenges arise for the club it is important to update and amend the policy aims and objectives of the organisation. The AST Board recently reviewed its activities and produced the following update. This paper was tabled at an AST meeting at the end of 2012 when further input and support from members was given. It also builds on feedback received in the annual membership survey.  We welcome further feedback from members at info@arsenaltrust.org

The first decade of AST

The Arsenal Supporters’ Trust was formed almost a decade ago. Our objective was to

• Facilitate wider supporter involvement in the club
• Promote the interests of supporters who own shares in Arsenal Football Club
• Facilitate and promote wider supporter ownership of Arsenal

Over the last decade the AST has developed and maintained a working relationship with the club and raised the profile and understanding of financial and ownership issues. Membership continues to grow and we now have more than 1,100 paying members, many of whom are individual shareholders in Arsenal. Approximately three per cent of the club’s equity is owned by small shareholders like us.

The AST has also established Arsenal Fanshare, a scheme designed to allow more supporters a chance to own a share in Arsenal. Almost 2,000 supporters are now members of Arsenal Fanshare sharing in the ownership of 85 shares.

Our activities include liaising with the club’s major shareholders, directors and executives, scrutinising Arsenal’s financial progress and governance arrangements, attending club events and widening understanding of how Arsenal is run by stimulating discussion of key issues at Arsenal and in the wider football community.

Arsenal has changed: New ownership arrangements

When the AST was founded, Arsenal’s Board and major shareholders were part of a plural ownership structure that took a custodianship approach to the club’s development. All of the major shareholders and Board members were lifelong Arsenal fans with three generations of Hill-Woods and Bracewell-Smiths serving as Chairmen and/or Board members. The Board largely worked together to do what was right for the club and all monies raised by Arsenal were reinvested to make the club stronger.

As well as the larger shareholders on the Board, there were a couple of thousand smaller shareholders who held around ten per cent of the shares. With Arsenal being a public company the Board did (and do) have to answer to all shareholders, up to a point, with important accountability and transparency occurring through the publication of Company Report and Accounts and the holding of an Annual General Meeting to which all shareholders must be invited.

In 2011 Stan Kroenke took over majority ownership of Arsenal and now holds a stake of 66.8%. The other Board members sold all of their shares to him and while they remain Board members they do not represent any equity interests.

To date Stan Kroenke has maintained a very low profile as owner and, despite promises to do so, has not yet met with the Arsenal Supporters’ Trust or any other supporter group. There is a lack of understanding amongst fans as to his long term ambitions for Arsenal and why he chose to purchase the club. His purchase of a 50 per cent stake in Arsenal broadband at the time of his first purchase may however be indicative.

AST Principles: How we believe Arsenal should operate

The AST believes that Arsenal is too important to be owned by any one person. The best ownership model for Arsenal will always include supporters being represented and involved in the ownership structure as shareholders. We understand the reality that any stake in Arsenal is available to buy at any time should someone make an acceptable bid, but we will oppose any bid to buy the club outright and take it into single ownership.

The AST would ideally like to see at least  ten per cent of Arsenal shares in the hands of small shareholders and/or supporters’ groups. This would allow interested supporters to have an appropriate voice and the opportunity to be engaged and feel that they belong to the club, just as Arsenal fans once did. This still occurs at other leading European clubs such as Barcelona and the German Clubs. It is also the model flourishig at Swansea.

The AST supports Arsenal being run as a sustainable business and does not support the creation of a business model that places the future of the club at risk by exposing it to excessive levels of debt. At times, as in the past, we think there is a case for equity investment to strengthen the club’s resources and we urge the Board to keep this option under on-going review.

The AST would fight any plans by an owner or purchaser of Arsenal to charge their acquisition debt against Arsenal and use the club’s income to service this debt, as has happened at Manchester United (and Liverpool under Hicks and Gillett). We want to see profits made at Arsenal reinvested into the club and we do not support dividend payments or excessive management salaries or fees as a way of extracting money from the club.

The AST intends to always remain in dialogue with the current Board and Chief Executive on ownership subjects, as well as with any major shareholder outside the Board and other relevant parties.

A long term view should always be taken with regard to football results and the club’s performance; we do not beleive that reacting to individual events such as losing any single match is the best way. It is not current AST policy to make specific criticism on the football personnel of the club during the season. However we are ultimately answerable to our membership on policy and will always represent members’ views to the best of our ability.

AST Priorities for 2013

The following sets out the priorities the AST Board has set for 2013. These policy positions are influenced by the AST annual survey, and feedback from members at AST meetings, on-line and elsewhere. Finally there is input from the elected AST Board members.

·         To secure the future of the Arsenal Fanshare Scheme – we have written to both Stan Kroenke and Alisher Usmanov asking them to support the scheme proactively.

·         To seek further explanation from Stan Kroenke as to his vision for Arsenal and to encourage him to engage personally with Arsenal fans

·         We will seek to maintain a dialogue with both major shareholders in Arsenal and urge them to work together to make Arsenal a stronger club

·         To independently review the corporate governance of Arsenal and urge appropriate modernisation and policies that support the future of the club.

·         To provide independent analysis and review of Arsenal’s finances to enable Arsenal supporters to better understand how the money the put into the club is spent.

·         To promote more affordable ticketing prices at Arsenal