Q&A with Tim Payton from the Arsenal Supporters’ Trust

At last, I’m able to present to you the “really super cool blog” I’ve been promoting for over a week. Today, we can read the insights of Tim Payton, who is a board member and the spokesperson for the Arsenal Supporters’ Trust. You can read more about Tim on the board page of the AST website.

There isn’t another person I can think of who would be able to combine an inner knowledge of all things Arsenal with a willingness to correspond with a lowly blogger such as myself. So how did I get to know Tim? Well, about a month ago I was reading a blog on the Gooner Talk website, where the writer there did a Q&A with Tim as well. So I figured I could go to the AST website and ask if someone would do a similar Q&A session for us. Very graciously, Tim said he would do that for us, and I’m excited to share his answers to my questions with you. Since he already answered many questions for Gooner Talk, I tried not to repeat all of the same questions. But if you want to reference that interview, you may do so here.

Before I post the questions and answers, I’ll insert a little programming note. I’ll probably be back tomorrow to give a general transfer update, but if anything happens before then, well of course that’s what the comments’ section is for. And later this week, we’ll hopefully get JG back to writing again as well. Ok, without further ado, here are my questions and Tim’s answers:

1) The most recent AST survey seemed to indicate a shift of opinion regarding Alisher Usmanov, who is currently not on the board.  Why has there been opposition to his involvement in the past, particularly considering he has wealth well beyond what Kroenke has, and he seems to be willing to spend it?
Yes, in the survey undertaken by the Arsenal Supporters’ Trust in June 2011, 70% of our members supported Red and White Plc (Usmanov’s vehicle for a 29% holding of the shares in Arsenal) be invited to join the Board of Arsenal Football. This compares to 40% holding a similar view in last year’s survey.

Of those that consider Red & White should be invited to join the Board most do so on the basis that, in view of its shareholding size, it has every right to Board representation and that it is vital to retain some plurality in ownership including acting as a check and balance on Kroenke’s ownership. Specific views put to us include “It can’t be sustainable for Usmanov to hold 29 percent and not be on the Board” and “If Kroenke is smart he’ll try and get Usmanov (and his money) on the inside rather than out.”

Of those who consider that Red & White should not be invited on to the Board, they are largely of the opinion that it would cause Boardroom conflict and could jeopardise the smooth running of the club. Others point out that whatever the current uncertainties “the question is, if Red & White were on the Board would this be constructive? The signs are that the difference in approach might cause disharmony.”
Many of the longer term fears that Arsenal supporters have had about Red and White are based on claims made about the business background of Usmanov (which he disputes). More on this subject can be read here and here.

2) What has been the reason for the lack of purchases over the last several years?  Do you believe Wenger has had large sums of money that he has refused to spend, or has there really been a limited budget for him all this time?  We keep hearing how we have money to spend, but then we never seem to use it.
Arsenal do not have the financial power of clubs like Manchester City and Chelsea (benefactor income) or Manchester United and Real Madrid (commercial income). In recent years Arsenal have had to sell to buy players. More recently Arsenal have had some funds to spend, notably about £30m from the sale of Adebayor and Toure, which the manager chose not to invest last summer or in the January 2011 transfer window. That was a strange decision given the widely recognised defensive weaknesses and long-term injury to Vermaelen. I wonder if Wenger now regrets this decision given how close the team were to making the elusive trophy breakthrough.

But just as important as transfer fees are wages. Arsenal have a big wage bill at £120m, but it does not compare to the wages paid at City and Chelsea, or even Manchester United now. The fact is the major superstars will end up playing at the clubs with the deepest pockets.
So what can be done? Arsenal need to grow their overseas presence and broaden their commercial programmes. The commercial gap behind Manchester United is now £50m a year. But the stark reality is that the long-term deals for shirt sponsorship and kit supplier do not expire till 2014, and the opportunity cost of lost revenue is now estimated at £35m a year and growing.

The AST does not support an unchecked sugar-daddy approach to ownership. But we do think the club should thoroughly review the options for its two billionaire shareholders – Kroenke and Alisher Usmanov – and other supporters to make sustainable investment into the club. Sustainable long-term options include paying down the remaining debt or undertaking a rights issue, as was concluded to the tune of £80m also to raise money for the stadium project. There is certainly an appetite from supporters to own shares in the club as the Arsenal Fanshare scheme, which has gained 2,000 members in just nine months, demonstrates.

3) How much power and influence do you think the Arsenal Supporters Trust has, given that your organization has a small minority of ownership?
 The role of the AST (www.arsenaltrust.org) is to act as a pressure group to influence ownership decisions at the club and to allow supporters to have a greater understanding of and involvement in how the club is run. We recently established Arsenal Fanshare (www.arsenalfanshare.com) to give more supporters a chance to be involved in the ownership of the club.
Clearly we do not have any direct power within the club’s ownership structure, but we do know that the current Board and executive team value our input and review our views and policies carefully. As an example, it was the AST that instigated the debate on an overseas tour and pushed Ivan Gazidis to undertake a review of ticket affordability at the Emirates.
The AST is a democratic membership organisation with all members receiving a vote on major decisions and being able to take part in regular discussion events and through forums such as the annual membership survey which is circulated to the Arsenal chief executive and Board members. You can read more about what the AST does at our website.

4) What role do the individuals on the board play in the operation of the club?  From an outsider’s perspective, it seems that the one who owns 70% of the club can run things however he wants, and then the manager can control transfers and player contracts.  So what do folks like Gazidis, Hill-Wood, etc do, and how much power do they have?
Now that Stan Kroenke has majority ownership (more than 50%) of Arsenal, he has complete operational control over issues such as hiring the executive team and day to day financial decisions. He also appoints the Board, and as part of his takeover statement he promised to retain the existing Board for at least one year. Some major company decisions require more than 75% of the shareholders to vote in favour of them at an Extraordinary General Meeting (EGM). These decisions might include paying a management fee, changing the name of the club or issuing new equity.
The AST supports an ownership model that does not put these powers in the hands of one individual.

5) How does Arsenal go about signing players? Obviously, they operate quite differently from other big clubs regarding this matter – Man United has shown that they can just announce a signing in the space of a few days.  While for Arsenal, it seems that rumours intensify, satiate, intensify yet again, and finally we have an announcement come the end of the transfer window. Is there any particular reason for this?
Arsenal tend to sign more players from overseas, and these transfers do take more time, as they include liaison with overseas regulators and football bodies. It is also the case, as explained above, that Arsenal do not have the financial muscle to make large offers to clubs and therefore avoid the need to in effect haggle over price. The self-sustaining model means every penny counts and Arsenal clearly have to do some of their transfer business after the marketplace has seen whether or not a financially stronger club has declared an interest in the same player.

6) The most recent AST survey indicates members would like for Kroenke to be more transparent in how he raised the money to purchase a majority stake.  I know he’s called “Silent Stan” for a reason, but is there any hope that he’ll come out and answer those questions, in addition to just giving us his general philosophy about how he wants the club to be run?
96% of AST members want to hear more from Stan Kroenke. His takeover ended more than eighty years of tradition at Arsenal where the club was owned by supporters, albeit wealthy ones. Stan Kroenke is a different type of owner, and the AST believes he ought to do more to communicate to fans his values and the strategy he has for taking the club forward.

7) Since the Arsenal Fanshare program was created, do you believe it has met the goals that everyone had in mind for it, to bring fans closer to the club and so forth?
Yes. It has given almost 2000 people a chance to have a greater say in the future of the club. At last year’s AGM, 100 Fanshare members attended who otherwise wouldn’t have had a chance to do so, and all Arsenal Fanshare holders were recently given an opportunity to vote on the takeover offer by Kroenke Sports Enterprises, which 95% voted against.
Arsenal Fanshare is an exciting and affordable, new way to buy your own share in the ownership of Arsenal. And because Fanshares cost just one hundredth of the price of shares in Arsenal Holdings Plc, they make owning a share of the club a realistic goal for far more fans. Sadly, legislation prevents us selling Fanshares overseas.
As football became a bigger and bigger business, few fans have been able to retain a share in the ownership of their clubs. The result has been that the fans’ voice on matters affecting their clubs’ futures has grown weaker and weaker.
But at Arsenal, the idea of Custodianship is central to the club’s unique character.
Custodianship is our responsibility as Arsenal fans to look after the club’s values and spirit, and keep them safe for future generations.
By buying Arsenal Fanshares and becoming a part-owner of the club, you can share ownership and influence with other fans with whom you already share values.
Together, you can make your voice heard on key issues affecting the club, and share in the Custodianship of the Arsenal spirit.
When you join Arsenal Fanshare, as well as playing your part in the Custodianship of the club, you receive an Arsenal Fanshare Certificate, a place in a ballot for a seat at the Annual General Meeting of Arsenal Holdings Plc, the Chief Executive’s Shareholder email updates and a say on important votes on the club’s future.

8 ) Do you believe the club has been wise in the way it’s handed out contracts to more marginal players in the past several years?  It seems one of the reasons why there supposedly isn’t enough money for transfers is that we’ve spent so much on very average players.  And then it becomes more difficult to sell those players with their inflated contracts as well.  Is this a problem in your view?
Ivan Gazidis often talks about the importance of assessing the “efficiency of wages spent,” and he is right to do so. Arsenal spend a lot on their wage bill – almost £50m more than Spurs last season. The club needs to constantly review the policy in this area and be careful it does not award contracts to players who are never going to make it as Arsenal regulars or to offer generous contracts to players who are frequently injured. Not only do they use up precious wage expenditures, but it is hard for them move these players on as they do not want to take pay cuts at other clubs.
It is certainly true that Arsenal do not pay superstar wages at the top level, but anecdotal evidence suggests that the fifteenth best player at Arsenal will compare favourably with the fifteenth best paid player at other top clubs. This is a priority for the club to address so we can keep pace with the highest spenders.

9) Finally, many of us live in North America and other places around the world, and have never seen Arsenal in person.  Could you tell us a little bit about the fan experience at the Emirates, particularly compared to other great stadiums in England?  And what are Arsenal fans like, compared to fans of other clubs?
Moving to the Emirates was an essential decision to ensure Arsenal’s position as one of Europe’s leading clubs. The Emirates generates almost £45m more in revenue each season, allowing for greater investment in the squad. It is certainly an excellent facility that beats Highbury in every regard except for one – atmosphere and tradition. That will hopefully grow with time, and what the Emirates needs is more great nights like the one against Barcelona in February, so that it starts to establish its own history.
Some of the challenges for the Emirates are that it segregates fans who want to get together and sing and chant to get behind the team – just see what Arsenal’s fan do when squeezed in together at away games. It is also a fact of life that high ticket prices keep out the noisier younger fans – the average age at the Emirates now is approaching 50!
Arsenal certainly seem to have a very big blog community which is extending the age old tradition of debating Arsenal in the playground, workplace or pub to a worldwide community. Its great to see so many fans enjoying what until recently was only accessible to those who grew up in North London.

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Category: Arsenal News, Transfer News and Player Movement