Premier League: Arsenal chairman defends £3m Kroenke payment
Friday 17 October 2014 11:25, UK
Arsenal chairman Sir Chips Keswick has defended the board's decision to pay £3million in "strategic and advisory fees" to the firm of majority shareholder Stan Kroenke.
Keswick was speaking at the club's Annual General Meeting at the Emirates Stadium which offered shareholders the opportunity to submit written questions to the board.
The issue over the payment to the American tycoon, who completed his takeover of the Gunners in April 2011, was the first question on the agenda and came following concerns from fans about escalating ticket costs.
But Keswick says the board had no issues over the decision and it was one that they might implement again in the future, depending on the nature of the services provided.
He said: "This fee was proposed by myself and Lord Harris (of Peckham) for the wide range of services provided to Arsenal Football Club by Kroenke Sports and Entertainment.
"KSE is one of the most respected and successful sports organisations in the United States, operating in the most sophisticated sports business market in the world.
"They have an extensive and long experience in modern sports management. It is of the utmost importance that as a club we use it to our best advantage to ensure we keep progressing.
"There was no competitive tender for these services as they are directly available to us, and a tender process was inappropriate, and therefore unnecessary.
"We are entirely satisfied the fee was appropriate. In terms of any future fees, that would depend on the nature of the services provided."
We are quite proud of what we have been able to accomplish. What a wonderful day at Wembley, to win the FA Cup was fantastic.
Keswick also claimed that the appointment of Kroenke's son Josh as a non-executive director in December 2013 "underlines the long-term commitment to the club from Stan Kroenke and KSE".
Kroenke gave a brief speech to the AGM saying he preferred to focus on the positives that the club have achieved over the season.
"We are quite proud of what we have been able to accomplish. What a wonderful day at Wembley, to win the FA Cup was fantastic," he said.
"We had numerous opportunities to get involved in other clubs in Europe, we certainly wanted to get involved in Arsenal. It is a wonderful place.
"We were long acquainted with Arsene Wenger's success and proud to be with him. We are pleased he has stayed on for a further three years and look forward to continued success."
