Business
Aliko Dangote planning on buying Arsenal FC
Serial entrepreneur and billionaire, Aliko Dangote has indicated that he still wants to buy English Premier League soccer team Arsenal even after he was rebuffed by its owners in 2010.
Dangote, an Arsenal fan, discussed buying a stake in the club 5 years ago before talks with the owners fell through, he said. Since then his wealth has grown more than sevenfold.
“I still hope, one day at the right price, that I will buy the team,” Dangote, 58, said in an interview as he traveled on a plane owned by one of his companies between the Ethiopian capital Addis Ababa and the Nigerian commercial hub of Lagos on May 1. “I might buy it, not at a ridiculous price but a price that the owners won’t want to resist. I know my strategy.”
Arsenal is one of England’s most successful clubs, having won 13 top flight league titles in the country, the most after Manchester United and Liverpool. Arsenal Holdings Plc., the owner, trades on the ICAP Securities & Derivatives Exchange, or ISDX, and is valued at US$1.49 billion.
A successful bid would make Dangote the first African owner of a club in a league where billionaires including Russia’s Roman Abramovich, the owner of Chelsea, and Abu Dhabi’s Sheikh Mansour bin Zayed al Nahyan, who controls Manchester City, have acquired teams.
Dangote has interests in sugar and flour and he is investing US$11 billion in a 650,000 barrel-a-day oil refinery near Lagos and as much as US$2.5 billion in gas pipelines running to the city from Nigeria’s oil-rich Niger River delta region.
His wealth has fallen by US$2.7 billion this year, the sixth-most globally, according to the Billionaires Index.
Dangote, who ranks 55th on the index, said he is too busy with existing projects to mount a bid now.
“We have US$16 billion worth of investments in the next few years,” he said.
“Right now I want to take my own business to a certain level. Once I finish on that trajectory, then maybe” an offer will follow.
Most English Premier League matches are broadcast live in Nigeria, Africa’s most populous country and largest economy, by Supersport, a satellite television channel owned by South Africa’s Naspers Ltd.
Arsenal won the FA Cup, England’s main knockout tournament, for the 11th time last year, its first major trophy since 2005, and is in the final of the same tournament this year. Over the last decade London rivals Chelsea have won the English league four times as well as the European Champions League and several other trophies.
Arsene Wenger, who has managed Arsenal since 1996, has been criticized by fans including Rwanda’s President Paul Kagame for the team’s limited success in the last decade.
Dangote said he is often too nervous to watch their games. The team beat Hull 3-1 on Monday with two goals from Chilean striker Alexis Sanchez.
While Wenger has managed the club well from a financial standpoint, he “needs to change his style a bit,” said Dangote. “They need new direction.”
Source: Bloomberg Business