The Arsenal board has rejected Alisher Usmanov's share rights issue proposal.

"The board, with its financial advisors 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," chief executive Ivan Gazidis said in an interview with the club's official website.

"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.

"Using permanent capital to pay down debt would not, therefore, radically transform the annual cash flow of the club."