Chinese Consortium invests $400m in CFG

FFPbegone said:
Abu Dhabi investment Group own 100% of Man city and this deal does not affect man city in any way.
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Some people keep saying this but it's not correct.

Sheikh Mansour owns 100% of ADUG, which used to own 100% of CFG, which in turn owned 100% of City. After today's deal, Sheikh Mansour still owns 100% of ADUG but ADUG now only owns 87% of CFG, which still owns 100% of MCFC. In practical terms it means little, as you need to own more than 25% to be able to really influence things.

Originally, when ADUG bought in, they only bought 90% of the shares, leaving Thaksin with 10%. However that level of shareholding (90%) allowed them to force the sale of the minority stake when Thaksin got a bit toxic. 87% doesn't allow them to force a sale of the minority stake.
 
OrigamiNinja said:
Does anyone have any thoughts on why the Chinese have done this? For £265m they could probably have bought any one of 15ish clubs outright in the Prem and potentially done another "City" rags to riches story. I know they couldn't invest huge amounts like Mansour did due to FFP but they could have potentially had huge revenue streams if a club became "China's" club.
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Because £265m wouldn't come close to building a rival to Real Madrid/Barca. We are already halfway there and obviously considered a solid investment.
 
This is an absolute belter from ragcafe
A market where the fans will by and large wear locally produced fake gear and 99.9% of them will never get a visa to leave China so will never visit your ground but may see you play on a tour there one day. Sad to say those same fans will also most likely have fake shirts of half a dozen other PL teams, will bet against the team they supposedly support if the odds favour it and will clear out of the bar they watch the match in leaving their torn up betting slips on the floor the minute their bet has sunk. It's a huge market, it's one United have been dabbling in way longer than City but it's one with little to no financial gain to be made and very little brand loyalty.
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Apparently the Chinese only buy knock off shirts, so they are actually financially worthless as fans. Genius at work
 
OrigamiNinja said:
Does anyone have any thoughts on why the Chinese have done this? For £265m they could probably have bought any one of 15ish clubs outright in the Prem and potentially done another "City" rags to riches story. I know they couldn't invest huge amounts like Mansour did due to FFP but they could have potentially had huge revenue streams if a club became "China's" club.
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It's probably more to do with trading relations between China and Abu Dhabi than anything else, but ultimately we as a club benefit from it.
 
Didsbury Dave said:
Because £265m wouldn't come close to building a rival to Real Madrid/Barca. We are already halfway there and obviously considered a solid investment.
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I'd add to that our global footprint. It will mean the Chinese will, like Abu Dhabi, be able to build local business partnerships not just in Manchester but in New York, Melbourne etc.
 
Gaudion M said:
No - your wrong. As I posted earlier:-

Just to clarify. We have issued shares which in accounting terms adds cash to the balance sheet but has no impact on P&L. The share have been issued by the holding company so the ownership of MCFC has changed and we are now owned as per the split above 87/13%.

The deal will have no impact on MCFC accounts and therefore no impact on MCFC FFP. It is that simple. Within groups of companies you find intercompany loans so the money could find it’s way into our accounts as a loan from the parent company and we could spend it but this would be no different to money the sheik put directly – it doesn’t change much in terms of our accounting or FFP. However it does mean that accusations of soft sponsorship going forward will be harder to justify given the multiple owners.

By my maths £265m is 13% of £2,039m. Let’s not do a rags and quote misleading or inaccurate figures. The group is valued at £2bn. Who cares how much we are worth we are top of the league and that is more important.
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Ok thanks for the insight, my O level economics never was worth it
 
AlloBoi said:
They don't own 13% of Manchester City they own 13% of the group
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You aren't getting this, mate. The Group owns the football club. Therefore they own 13% of the club. Not that i
Prestwich_Blue said:
Some people keep saying this but it's not correct.

Sheikh Mansour owns 100% of ADUG, which used to own 100% of CFG, which in turn owned 100% of City. After today's deal, Sheikh Mansour still owns 100% of ADUG but ADUG now only owns 87% of CFG, which still owns 100% of MCFC. In practical terms it means little, as you need to own more than 25% to be able to really influence things.

Originally, when ADUG bought in, they only bought 90% of the shares, leaving Thaksin with 10%. However that level of shareholding (90%) allowed them to force the sale of the minority stake when Thaksin got a bit toxic. 87% doesn't allow them to force a sale of the minority stake.
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People need to take this in. The "magic number" of shares is 26%, which means that the owner can effect significant change on the company. This is only half that, and basically, well not meaningless, but not bad news in any way. Effectively the group's capital (think "Money") has gone up by £265 and presumably, we now have major influence in China, because these are the media groups who matter in that region.
 
OrigamiNinja said:
Does anyone have any thoughts on why the Chinese have done this? For £265m they could probably have bought any one of 15ish clubs outright in the Prem and potentially done another "City" rags to riches story. I know they couldn't invest huge amounts like Mansour did due to FFP but they could have potentially had huge revenue streams if a club became "China's" club.
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I am guessing because it's a more passive stake. In addition to your point re: FFP, ADUG's already made significant investments in the brand and the infrastructure; the club is already popular in China; we already have the operating expertise and a global vision. I'd guess their theory is that "success" (and ROI) will come sooner, and at a higher level, for their money with City than with anyone else. And as elsewhere stated, it's a positive for trade relations between the states.
 
Great deal for us. Opens an incredibly lucrative market for us. Fans of other teams have every right to be worried cos they're starting to realise not only are we not going anywhere we're taking steps on becoming one of the biggest clubs in the world.
 
Didsbury Dave said:
You aren't getting this, mate. The Group owns the football club. Therefore they own 13% of the club. Not that i


People need to take this in. The "magic number" of shares is 26%, which means that the owner can effect significant change on the company. This is only half that, and basically, well not meaningless, but not bad news in any way. Effectively the group's capital (think "Money") has gone up by £265 and presumably, we now have major influence in China, because these are the media groups who matter in that region.
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That £265 will work wonders :)
 
I've been waiting for this...
It is a fundamental precursor to City buying a football club in China.
Quite simply, unlike the UK you can't do business in China without a Chinese company owning a part of it.
BTW China Media Capital actually own a majority stake in the Media company that broadcasts the Chinese Super League. I can't as yet determine whether they or a subsidiary actually own one of the Super League clubs...
 
FogBlueInSanFran said:
I am guessing because it's a more passive stake. In addition to your point re: FFP, ADUG's already made significant investments in the brand and the infrastructure; the club is already popular in China; we already have the operating expertise and a global vision. I'd guess their theory is that "success" (and ROI) will come sooner, and at a higher level, for their money with City than with anyone else. And as elsewhere stated, it's a positive for trade relations between the states.
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They have seen what we have done with the academy and want something like that across their country. I can now see why the intellectual property we sold to the sister clubs was valued so highly and what we got our hands slapped for with UEFA.

Another club will more than likely set up in China, if you give the locals something to buy into on their door step it gives them some type of affinity with the club that's top of the league in the richest league in the world. More shirt sales, more hits on websites and social media means bigger advertising deals.
 
i'd say it probably helps towards the £1bn housing partnership with Manchester City council, i could be wrong and we could buy Messi with it !!
 
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