THE RUSSIAN oligarch Alisher Usmanov has serious doubts over whether Arsenal will be able to compete financially in an inflated transfer market after seeing the rights issue he had proposed to the club’s board rejected by directors.

Usmanov’s Red White Holdings issued a statement last night insisting it would keep the situation “under close review” after the club’s chief executive, Ivan Gazidis, confirmed the proposed rights issue – designed apparently to eat into the club’s €463 million debts and provide significant transfer funds – had been turned down. In the circumstances, confirmation that one of Arsenal’s principal transfer targets, Fiorentina’s Felipe Melo, is close to joining Juventus in a deal worth around €25.5 million was distinctly untimely.

“Based on financial information that only they have, the board have informed us that they are confident they have adequate financial resources to support the manager to strengthen the squad, to weather the property downturn, to renegotiate the Highbury Square loan on good terms and to deal with the continuing difficult economic conditions,” said Red White Holdings. “We do not share their view but are prepared to give them the benefit of the doubt for the moment. However, we will keep the situation under close review.”

Arsenal have spent €11.6 million to date this summer on the Belgian defender Thomas Vermaelen, though Gazidis is comfortable with their strategy. “The board, with its financial advisers Rothschild, considered thoroughly the proposal to use permanent equity capital to either pay down debt or to add to the club’s spending in the transfer market,” said the chief executive. “With regard to debt, the conclusion reached is that the club has a very efficient capital structure with long-term debt on attractive interest rates. We can comfortably afford to meet the annual costs of this debt while at the same time generating surplus funds to invest in the club.

“With regard to players, the board decided not to issue permanent capital in the hopes of signing one or two players in an inflated transfer market. Instead, the focus continues to be on securing the services of talented young players we have on long-term contracts and making very selective acquisitions.”

There were suspicions within the club hierarchy that Usmanov’s proposals would prove a means for the oligarch, who owns 25 per cent of Arsenal, to gain greater control given, if the rights issue is not fully subscribed, any dilution of the equity holdings of existing investors would permit him to grow his share.

Yet the possibility of losing Melo, whom Wenger had earmarked as the midfield enforcer his team needed, is an untimely reminder of the market in which Arsenal are competing.

The Brazilian has a release clause of €25 million in his contract at Fiorentina and, while Juventus are still haggling over a deal, with their proposal including Marco Marchionni moving in the opposite direction, they have edged clear of Arsenal as favourites to secure the midfielder.

Gazidis stressed Arsenal’s best players would not be moving on this summer, reaffirming as much by confirming that Robin van Persie had signed a new deal at the Emirates. The Dutchman is now contracted until 2014.

Van Persie – Arsenal’s leading scorer last season with 20 goals from 44 appearances – was so determined to complete the paperwork ahead of the new season that he did so while on holiday in Cannes.

The Holland forward is set to join up with the rest of the Arsenal squad, some of whom have already returned to pre-season training, next week.

“We have been talking for almost a whole year, and we managed to close the deal in between the two last international games, when we had agreed on all the important things,” the Dutchman revealed in an interview with Arsenal TV Online.

“I start again on July 13th, and it is good to close the deal and start with a good feeling. I cannot wait for the new season.”

Van Persie added: “One of the main reasons I signed was to lift a big trophy. I do not want to do it with a different team. I want to lift it with Arsenal.

“That is now my main target and it would make me so proud to do it.

“I know it is going to be hard, because we have lots of competition, with teams like Manchester City and Aston Villa getting stronger. But I still see big chances for Arsenal, and it is my dream to lift trophies with this team.”

Van Persie had been linked with a big-money move away from the Emirates Stadium, with Manchester United a reported destination.

Guardian Service