What is MCFC Limited Worth?

fbloke

Well-Known Member
Joined
26 Apr 2009
Messages
13,303
There is a constant stream of news articles that tell us how much Sheikh Mansour has 'pumped' into City since he bought the club.

The most common figure is that magical and strangely round £1bn (£1,000,000,000).

Having had more than a couple of conversations with people about this is seems strange that in general people see that £1bn as money lost.

Of course that money isnt lost a lot of it remains within the value of the club and its assets but I cant seem to find a sensible report which looks at that side of things.

There is this from last year - <a class="postlink" href="http://www.independent.co.uk/sport/football/premier-league/tottenham-valued-higher-than-manchester-city-and-liverpool-8550552.html" onclick="window.open(this.href);return false;">http://www.independent.co.uk/sport/foot ... 50552.html</a>

They value the whole club at £401.1m and state that it is in part because City dont won the Etihad - that observation is surely a moot point as MCFC could always sell on the lease that they have which still has considerable worth?

But of you look at this - <a class="postlink" href="http://www.transfermarkt.co.uk/en/manchester-city/kader/verein_281.html" onclick="window.open(this.href);return false;">http://www.transfermarkt.co.uk/en/manch ... n_281.html</a>

There you see a value for the main players in the squad at £380m which seems not to tally with the first valuation at all.

The talk about City's financial figures recently mentions the value of intellectual property and other intangibles but there seems little attempt by the press to explain why MCFC, or perhaps its better to talk about City Football Group, can charge the figures they do and what IP is actually worth.

The club, squad, the brand value, the stadium, the training ground, the land already purchased, the TV rights etc all add up to create a value.

So what is City worth?

I reckon the large part of that £1bn invested is still there and far from lost.
 
It´s very hard to estimate as any club is worth what a buyer are willing to pay..but we might have to remember that MCFC Ltd is just one "branch" of an empire that have just started going global. The rights for a New York franchise was bought for $100m alone and get a stadium sorted there and we might see NYCFC having substantial hard assets that are very valuable it itself.

Sheikh Mansour and other stakeholders will get their money back eventually, not right now though but in due time IMHO.
 
It's value is the net present value of its future cash flows; which I am not about to calculate. However, given the level of the cash outflows from the club that have had to be financed from Mansour's pocket and the likelihood that, with all the current investment, that will need to continue, the npv will be held down. At some point, City may become much more of a cash cow, and the value could shoot up dramatically.

Taken in isolation, I doubt Mansour will ever get all his money back from his investment in City. The wider and more intangible benefits to Abu Dhabi may make the investment worthwhile. As a vanity project, Mansour has a chance of owning the best football club in the world at some point and that might be worth every last dirham.
 
Tbilisi said:
How much is our owner worth?I read on here with everything taken into account it was about 1.5 Trillion?

That´s impossible to estimate, according to IMF the oilfields alone was worth $2.5Tn when oil was at about $65 a barrel, but then we must remember that the Al-Nahyan government pays for almost everything.. Medical healthcare, military, schools, social security etc so it´s money out as well
 
Once we start turning a profit, stadium expansion and the campus open, NYCFC & Melbourne Heart established, established CL team and winner of regular silver wear we will be worth what £750 million? Plus a player asset of what £150-£200 million? I think within ten years his investment will be balanced against the value of the club.

The we become a profit making vehicle for him with the added advantage us being a constant advertising vehicle for Abu Dhabi..
 
I heard the other day a journo on TalkSport say we'd spent £430 million on players but it didn't mention returns from sell-ons so it wasn't a 'net' figure. Probably around £180 million on the take-over on top but that isn't investment and is just the value it was worth when they bought the club.

Nowhere near £1 billion and the club's income has shot up to £271 million last year and probably over £300 million this current financial year easily.

The revenue and profits will over-take the investment soon and don't forget the player values will enhance the overall value as well. We've wasted some money on the likes of Robinho (£10 million loss), Adebayor (15 million loss), Crocky (£18 million loss), Lescott (£22 million loss) and the rest and not to mention their wages but other player's values have been enhanced like Aguero (£20 million profit), Vinnie (£20 million profit, Zaba (£15 million) Hart (£20 million), Dzeko(maybe same value as paid), Navas (£5 million profit), the Beast (£10 million profit), Clichy (same value maybe), Nasri (£5 million profit), Silva (£10 million profit), Yaya (£5 million profit but would be a lot more but for his age), Adam Johnson (£6 million profit), Boateng (£1.5 million profit) and many more.

It's a very complex picture and difficult to find the answer.
 
OB1 said:
It's value is the net present value of its future cash flows; which I am not about to calculate. .

probably not worth while anyway looking at the revenue and operating expenses (and a quick bit of mental math ;-) ) we'd probably need a huge forecasting period to even get to positive free cash flow.

however, what interested me about the annual report was the significant presence of social media. It looks like they are attempting to tap into this sort of "tech business model" of generating enough users to make themselves an attractive investment.

That said, I've not looked at other football clubs a/r's before. is there as much emphasis on social media?

edit: perhaps not a huge forecasting period, five would probably do it. But it would still result in -ve dcf
 

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top
  AdBlock Detected
Bluemoon relies on advertising to pay our hosting fees. Please support the site by disabling your ad blocking software to help keep the forum sustainable. Thanks.