Chinese Consortium invests $400m in CFG

Prestwich_Blue said:
One of the interesting things is that rags are saying "How can City be valued at £2bn when we are?"

Using something called the Markham Multivariate Model, which is generally reckoned to be the most accurate method of valuing football clubs, (based on City's last accounts) we should be valued at around £2bn. So that valuation, based on the value of the stake sold, is actually spot on.
Click to expand...
Is that Manchester City Football club or CFG?
 
So my view.

I think it will have long-term benefits for City. Firstly, I expect trivial things like a pre-season tour to China and the like, but the core advantage for us is the door being opened to marketing in China, with CMC also owning the media rights to the Chinese Super League, we have a nice crossover. I wouldn't be sure on the emergence of a Chinese club in the CFG, I'd expect it, but I'm not sure how that would be squared with CMC's media rights deal. However, it's clear we have an investment and deal that has approval from on high in China, and we've been used as a tool in wider political relations, so I think from a commitment and backing point of view, we have a lot to gain from that deal.

Mainly the marketing opportunities and large exposure will mean increased interest in City by association, and thus hopefully enable us to bump up the Nike deal, as well as secure lucrative Chinese sponsorship deals. There won't be any immediate impact on FFP, but if we can bring in some deals then hopefully we can have a big summer, with or without Messi, and really build an elite squad. I also think this deal will make it less likely that there will be other Chinese investment in the Premier League, which benefits us as well.

So I think the core aim of this deal is to get the whole CFG into China successfully, and I think a Chinese club and CFG academies in China will be part of it. I think we'll benefit from marketing and exposure from a relevant investor who knows its market, and I think that will drive a strong commercial growth over the next few years. Our part of the deal is to be immensely successful on the pitch, build an elite squad and add the two cherries on top. If we do see any cash from the deal, I think it will either go into stadium development or more interestingly, the collar site. Food for thought.
 
markbmcfc said:
Have I got this right (hypothetically), as I'm shit at business related stuff and seem unable to apply common sense to things that confuse me.

Quick google says there's about 100 million football fans in China.

If we signed Messi, and only half that fanbase bought his shirt, at £50 a pop.

That's £2.5bn in shirt sales? Before image rights and how that's divided across relevant parties.

Talking wildly and purely hypothetically here.
Click to expand...

Surely if communism is good for something it's for forcing everyone to buy a shirt.
 
Daz_Blue said:
Has Wenger commented yet ?
Click to expand...
meltdown_confirmed.jpg
 
Dribble said:
Is that Manchester City Football club or CFG?
Click to expand...
That's just based on City's accounts, not CFG. The MMM uses stadium utilisation & wage/turnover ratios as part of its calculation so you can only really apply it at club level. I'd guess City represents the vast majority of the CFG value though.

The calculation is as follows for anyone interested:

(Revenue + Net Assets) * ((Net Profit + Revenue)/Revenue) * Stadium utilisation % / Wage-to-turnover ratio

Revenue was £352m
Net Assets were £753m
Net Profit was £11m
Stadium utilisation was 98%
Wage-to-turnover ratio was 55%

So (with all figures in £m) that's (352+753) * ((11+352)/352) which gives 1140.

1140 * .98 = 1117

1117/.55 = 2030, meaning our MMM value is £2.03bn

Sale of a 13% stake for £265m gives a total value of £2.04bn.
 
Didsbury Dave said:
Don't get me wrong, I hate the thick, shallow arrogant cunts and I've got plenty of memories of the empty-headed pricks sneering at us. But I think we play into their hands a bit at times sometimes, that's all.

Anyway, back to the discussion. World domination is inevitable. We are owned by the richest country in the world with assistance from the fast growing economy in the world.

Nice.
Click to expand...
I would not rush to view this as a positive just yet. It is a fairly complex deal which down the line may have unforseen repercusions. While at present MCFC is clearly the dominant force in this expanding organisation in 10 or 15 years time other parts of the conglomerate may grow in importance. Indeed, in 30 or 40 years City may have fallen way down the pecking order. I won't be around then but I am feeling just a little bit uneasy that the team I have supported for decades is potentially going to be swollowed up by a ginormous conglomerate.
 
Prestwich_Blue said:
That's just based on City's accounts, not CFG. The MMM uses stadium utilisation & wage/turnover ratios as part of its calculation so you can only really apply it at club level. I'd guess City represents the vast majority of the CFG value though.

The calculation is as follows for anyone interested:

(Revenue + Net Assets) * ((Net Profit + Revenue)/Revenue) * Stadium utilisation % / Wage-to-turnover ratio

Revenue was £352m
Net Assets were £753m
Net Profit was £11m
Stadium utilisation was 98%
Wage-to-turnover ratio was 55%

So (with all figures in £m) that's (352+753) * ((11+352)/352) which gives 1140.

1140 * .98 = 1117

1117/.55 = 2030, meaning our MMM value is £2.03bn

Sale of a 13% stake for £265m gives a total value of £2.04bn.
Click to expand...
TBH I just used the last line version to calculate $3bn.
 
Ric said:
It has been kept under wraps pretty well, but don't know if you remember this from the Pogba thread over summer:





Everyone assumed it was related to Pogba, but someone on here PM'd this at the time:



Obviously I'm not claiming to be ITK, but he most certainly is.
Click to expand...

Haha! You gave me a temporary ban for wumming after that post!

No harm done, but I'm glad you can now see everything I posted that night was 100% genuine.

Great news for City. Every club wants to get exposure in the huge Chinese media market. What better way to guarantee that than to partner up with a state sponsored media giant?

It's important to remember that because of very loose IP and trademark law in China, it's very difficult to make money from selling shirts. It might be cliché to say, but genuinely there is a huge market for counterfeit shirts in China, far bigger than other developed economies.

So where's the value in having a presence in China? The 2 billion people. The rapidly expanding middle class. The mass media that reaches them. Brands wanting to expand in to China will be killing each other to try to be associated with City because of this.

Our new shareholders have a vested interest to generate the most exposure possible in China for City and our partners. The best way to do this is mass media. They dominate mass media in China, so the potential exposure this deal will give us is immeasurable.
 
Since the saviour took over, we have won 2 titles and been in 3 cup finals (2 of which we won), and the club continues to grow like this. Plus building us the best accademy in the world. When will they stop? They were meant to have got bored by now and left us in the shit. Oh.... maybe that was paper/rag talk haha. Quite unbeleivable to think that all that has proceeded is just the start. And some people go ape shit when Navas hits the first man again. Who cares!!! Sit back and enjoy the ride. Over the next 5-10 years this is going to get "MASSIVE" :-)
 
Shaelumstash said:
Haha! You gave me a temporary ban for wumming after that post!

No harm done, but I'm glad you can now see everything I posted that night was 100% genuine.

Great news for City. Every club wants to get exposure in the huge Chinese media market. What better way to guarantee that than to partner up with a state sponsored media giant?

It's important to remember that because of very loose IP and trademark law in China, it's very difficult to make money from selling shirts. It might be cliché to say, but genuinely there is a huge market for counterfeit shirts in China, far bigger than other developed economies.

So where's the value in having a presence in China? The 2 billion people. The rapidly expanding middle class. The mass media that reaches them. Brands wanting to expand in to China will be killing each other to try to be associated with City because of this.

Our new shareholders have a vested interest to generate the most exposure possible in China for City and our partners. The best way to do this is mass media. They dominate mass media in China, so the potential exposure this deal will give us is immeasurable.
Click to expand...

But even knock off shirts bear the sponsors name and represent the brand. There is still great value, just missing the bit from the initial sale.
 
Didsbury Dave said:
Haven't we as a fanbase moved beyond keeping this discussion at "The rags don't like it tee hee hee" level? Fucking hell. Anyone who is looking at Man United forums or whatever right now has their priorities badly wrong.
Click to expand...
I agree mate. Barcelona fans don't like it, tee hee hee.
 
You must log in or register to reply here.
Unread Posts

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

SIGN UP
Back
Top