New Premier League Rule Freezes out certain shareholders
The Premier League has proposed a rule, which has been agreed to by clubs, which will have the effect of freezing out hostile shareholders like Arsenal’s Alisher Usmanov, reports The Telegraph.
Coupled with his business partner Farhad Moshiri the duo own a combined stake of 29.72 per cent in the club through their investment vehicle, ’Red and White Securities’.
This puts them close to the 30% threshold that under current Premier League regulations would grant them the rights and responsibilities of club directors, allowing Usmaov access to all ‘material transactions’ such as records of transfer dealings as well as wage and agent expenses.
The Russian’s lawyers were set to argue that their client needed to view these records in order to maintain achieve satisfaction over their correctness. However, Arsenal can now deny Usmanov access to their data following the rule change that has been voted in by Premier League clubs.
A source with an understanding of the situation told The Telegraph: “The rule left clubs open to the possibility of a hostile shareholder who is not on the board getting access to the books.
“Now if you are not on the board but have between 30 and 50 per cent of a club you don’t need to sign off on material-transaction reports.”
Red and White Securities refused to comment but it remains to be seen whether the new regulation will effect Usmanov’s investment strategy within the club. If he chooses to withdraw then it is likely that share price will fall, enabling supporters of the club and the Arsenal Supporters Trust to purchase shares at a more reasonable price.