Arsenal moved closer to becoming the latest Premiership club to fall under foreign ownership last night after David Dein, the former vice-chairman who relinquished the role bitterly in April citing "irreconcilable differences" with the board, sold his 14.58 per cent stake in the club to the Uzbek steel magnate Alisher Usmanov.
Dein relinquished his holding for €110 million to the specially created investment company Red & White, jointly owned by Usmanov and the London-based investor Farhad Moshiri, for which he will now act as chairman. While the prospect of Usmanov and Moshiri buying into Arsenal may be a worry for the current board given how fiercely resistant they have been to foreign investment in the club, their biggest fear will now be that Red & White link up with Stan Kroenke, the American businessman who owns a 12.19 per cent stake in the club, and mount a takeover bid proper.
The emergence of Kroenke, who was introduced to the board by Dein, had prompted the schism between the former vice-chairman and the other shareholders. The hierarchy, led by major shareholder Danny Fiszman, who owns 24.1 per cent, and the chairman Peter Hill-Wood, disagreed with the American's increased involvement.
Red & White yesterday claimed that they have "no current intention" to make a takeover offer for Arsenal, though Usmanov - who made the cash purchase of Dein's shares and, is worth an estimated €4.04 billion - has indicated the investment company will seek to increase their stake in the club.
No bid is imminent but should Red & White ally with Kroenke, the two groups would boast a stake worth just under 27 per cent of Arsenal, within touching distance of the 29.9 per cent which would require a takeover bid to be lodged. A further 3 per cent of the club is owned by the Arsenal Supporters' Trust.
Dein outlined the sale of his shares in Islington yesterday and, while he was insistent his intentions were not hostile, the ramifications of his actions will have been felt at the Emirates Stadium. He pointed out he has now introduced two billionaires in Kroenke and Usmanov to the club as strategic investors with the intention of ensuring Arsenal remained competitive .
"This marks a significant step towards realising the vision I share with thousands of fans at home and abroad of making Arsenal the world's number one football club," added Dein.
"My immediate intention is to work with others to provide the financial resources necessary to turn the vision into reality.
"To provide these financial resources, Arsenal need new investors. The board should welcome non-British involvement. Without new investors, I feel very soon Arsenal might not be able to compete successfully at the very top level, despite the fantastic work of Arsène Wenger."
It remains to be seen if Wenger would agree. Usmanov is an associate of Roman Abramovich, largely through his background in the steel and iron ore industries. The sale represents a staggering profit for Dein, a former market trader who bought his original shareholding for £292,000 in 1983.
