By Iain Macintosh

THEIR fortunes on the pitch may be in the hands of Arsene Wenger, but if reports in the UK press are to be believed, Arsenal's financial security off it is dependent on a lone Singaporean investor.

The Guardian reported yesterday that the unnamed financier has committed to purchasing a large number of flats in the Highbury Square development, but is not prepared to pay the sum up front, causing the football club problems as they, in turn, attempt to pay off the loans undertaken to complete the project.

Arsenal's plan to convert their erstwhile Highbury home into luxury apartments has been hit hard by the global recession.

When the plans were released to the public, the UK property market was booming and interest was high, but since the credit crunch of 2007, housing sales have plummeted and mortgages are in short supply.

A loan of £135 million ($297m) was taken by Arsenal to fund the development, but it has been reported that the club is unlikely to be able to pay it off by April 2010 as agreed, especially as two of the banks used for that deal have since been part-nationalised and are less likely to agree to any kind of extension.

Deferred payments

The amount expected from the Singaporean investor was supposed to cover a significant proportion of the loan, but the only proposal on offer has been a series of deferred payments.

Arsenal are thought to have rejected that proposal and are now working with the banks to find a solution.

'We are actively examining proposals,' said chairman Peter Hill-Wood.

'Which, subject to the consent of our lending banks, would allow support to be given, in appropriate circumstances and on commercial terms, to those substantial purchasers who have requested assistance in completing on their units.'

Financial uncertainty is the last thing that Arsenal need at such a critical time for the football club.

Wenger's Gunners are outside the placings for the lucrative Champions League and a failure to qualify for Europe's premier tournament and the TV revenue that goes with it will savage their balance sheet and severely restrict their ability to attract top class players.

With the growing involvement of Uzbekistani magnate Alisher Usamanov and American sports mogul Stan Kroenke in the boardroom, the future of the club is very much in the balance.

Arsenal FC could not be reached for comment as The New Paper went to press, but sources close to the club suggested that any statement concerning individual investors was highly unlikely.

This article was first published in The New Paper on Feb 28, 2009.