CFG Expansion | Başakşehir to join? (p70)

[waspish]

Looks like New York City a finally able to build a new stadium!

New York City Reaches Deal to Build Soccer Stadium in Queens (Published 2022)

The New York City Football Club will pay roughly $780 million to build the stadium in Willets Point in Queens as part of a project that will include housing and a hotel.

www.nytimes.com

 

[radcliffe1309]

This is also in the NYC FC thread in the General Forum, but perhaps is worth noting here as well, as this is a major step that CFG have been working towards for a long time. They've finally done a deal for a stadium in New York City, which should be built by 2027. CFG is footing the bill itself rather than relying on the kind of subsidies from local government that are common in the States for the construction of major sports venues. It's a BIG deal for CFG.

It looks a pretty impressive development, as well. It involves a 25K-seater stadium, affordable housing and a hotel as well as retail, and is based in Queens, so within the five boroughs. As the Red Bulls are outside the city boundaries, the latter point was vital: NYC FC can continue to claim to be the team of New York City itself.

The venue is close to Citi Field, home of the Mets (with whom they'll share car parking space), and to Flushing Meadows, the US National Tennis Centre which hosts the US Open. The retail part of the offer presumably includes bars and restaurants, so one could see this becoming the closest that the city has to a dedicated sports district.

The story in the New York Times is here: New York City Reaches Deal to Build Soccer Stadium in Queens

It requires registration, though, so I've copied the opening paras below:



And here's an image of the proposed stadium and surrounds:

View attachment 61047

A major step for the group, the investment is huge !

 

[radcliffe1309]

Looks like New York City a finally able to build a new stadium!

New York City Reaches Deal to Build Soccer Stadium in Queens (Published 2022)

The New York City Football Club will pay roughly $780 million to build the stadium in Willets Point in Queens as part of a project that will include housing and a hotel.

www.nytimes.com

Huge investment by the group and I'm sure it will be a successful investment as the research and homework will undoubtedly have been done etc...this is great news for the fans of NYCFC .

 

[bobbyowenquiff]

A major step for the group, the investment is huge !

I think it's great and will help nail the fake "sportswashing" narrative. This is a huge investment in New York and follows a similar pattern to what we have seen in Manchester..a major partnership with the local council with big community benefits. Apparently it's the biggest affordable housing project in the area since the 1970s. Sheikh Mansour has already made a huge profit from his investments in Manchester and now he is making a huge step in New York. Anyone in the media who still thinks he is doing this for political reasons and not for profit is crazy.
The only downside is it may impact on the North Stand expansion. The CFG group will have its hands full with this complex US project.

 

[petrusha]

Also on CFG, this is worth noting:



When I read this on Saturday, it was the first mention I'd seen of a new company in the structure - City Football Group (Midco) Limited. I went through its filings with the registrar of companies and what I diuscovered was as follows:

• it was incorporated in May this year;
• in July, it registered two charges, an action showing it had become a party to security agreements relating to the financial arrangements of its sole shareholder, the parent company City Football Group Limited; and
• six directors were appointed on 14 September this year, all of them directors of the parent company, as is John Macbeath, who was already a director upon incorporation.

Stefan says it's now the holding company for MCFC, which would mean there's been some kind of group reorganisation recently beyond simply a new group company being created. And the fact that they've given the company the authority to raise over GBP 817 million of new share capital also suggests that something is going on - especially as we're talking about a level below the group's ultimate holding company.

If anyone wants to dig around some out more, follow the respective links to the publicly available information held at Companies House for City Football Group Limited and City Football Group (Midco) Limited.

One point of interest is that the board of Midco comprises the entire board of the parent company bar one. The big-hitters are there - including Khaldoon, Simon Pearce, Marty Edelman, Egon Durban (co-CEO of Silverlake), and Abdulla Khouri (the events expert from Abu Dhabi, who chairs the company operating the Yas F1 circuit and the Emirate's leading music, sports, and entertainment events company). That seems to indicate we're dealing with a company of genuine substance, not just a minor subsidiary. Interestingly, missing is Ruigang Li, the representative of the Chinese shareholder CMC Holdings Limited, though he remains on the board of the parent company.

So, what's going on? With CFG currently engaged as an equal partner in the construction of the largest indoor arena in Europe and a USD 800 investment forthcoming on NYC FC's stadium, the obvious temptation is to ascribe the most likely reason to something relating to infrastructure development. The sum is simply too big to reflect the company wanting to create an opportunity to issue shares in the event of some vague and as-yet-unknown future need.

Another wrinkle is Li alone not being a director but remaining on the board of City Football Group Limited. Does this suggest that the Chinese shareholder is interested in CFG in general as a global business but not especially in whatever Midco will be doing? Or, especially given the dilution of its stake when Silverlake came on board, are we seeing the Chinese investor gradually slip away from the venture?

We simply don't have enough information to make even an educated guess as to what may be happening. It's probably therefore futile to speculate further, but better instead to keep a watching brief on events. For those, like me, who are football business nerds, it promises all to be very interesting and, potentially, extremely exciting.

 

[Manchester_lalala]

Also on CFG, this is worth noting:



When I read this on Saturday, it was the first mention I'd seen of a new company in the structure - City Football Group (Midco) Limited. I went through its filings with the registrar of companies and what I diuscovered was as follows:

• it was incorporated in May this year;
• in July, it registered two charges, an action showing it had become a party to security agreements relating to the financial arrangements of its sole shareholder, the parent company City Football Group Limited; and
• six directors were appointed on 14 September this year, all of them directors of the parent company, as is John Macbeath, who was already a director upon incorporation.

Stefan says it's now the holding company for MCFC, which would mean there's been some kind of group reorganisation recently beyond simply a new group company being created. And the fact that they've given the company the authority to raise over GBP 817 million of new share capital also suggests that something is going on - especially as we're talking about a level below the group's ultimate holding company.

If anyone wants to dig around some out more, follow the respective links to the publicly available information held at Companies House for City Football Group Limited and City Football Group (Midco) Limited.

One point of interest is that the board of Midco comprises the entire board of the parent company bar one. The big-hitters are there - including Khaldoon, Simon Pearce, Marty Edelman, Egon Durban (co-CEO of Silverlake), and Abdulla Khouri (the events expert from Abu Dhabi, who chairs the company operating the Yas F1 circuit and the Emirate's leading music, sports, and entertainment events company). That seems to indicate we're dealing with a company of genuine substance, not just a minor subsidiary. Interestingly, missing is Ruigang Li, the representative of the Chinese shareholder CMC Holdings Limited, though he remains on the board of the parent company.

So, what's going on? With CFG currently engaged as an equal partner in the construction of the largest indoor arena in Europe and a USD 800 investment forthcoming on NYC FC's stadium, the obvious temptation is to ascribe the most likely reason to something relating to infrastructure development. The sum is simply too big to reflect the company wanting to create an opportunity to issue shares in the event of some vague and as-yet-unknown future need.

Another wrinkle is Li alone not being a director but remaining on the board of City Football Group Limited. Does this suggest that the Chinese shareholder is interested in CFG in general as a global business but not especially in whatever Midco will be doing? Or, especially given the dilution of its stake when Silverlake came on board, are we seeing the Chinese investor gradually slip away from the venture?

We simply don't have enough information to make even an educated guess as to what may be happening. It's probably therefore futile to speculate further, but better instead to keep a watching brief on events. For those, like me, who are football business nerds, it promises all to be very interesting and, potentially, extremely exciting.

Wait till Sheikh Mansour gets bored.. oh.

 

[KS55]

Is this just a way of raising money for infrastructure without disturbing the share holdings of CFG? Also, CFG have an arrangement with a group of banks to draw down £500m for infrastructure and group IT development which won’t nearly cover NYC complex.
Huge investment going on. Sportswashing? Pfft!
Alternatively, money is needed to pay Ld.Pannick’s £20,000 per day fees.

 

[Centurions]

Also on CFG, this is worth noting:



When I read this on Saturday, it was the first mention I'd seen of a new company in the structure - City Football Group (Midco) Limited. I went through its filings with the registrar of companies and what I diuscovered was as follows:

• it was incorporated in May this year;
• in July, it registered two charges, an action showing it had become a party to security agreements relating to the financial arrangements of its sole shareholder, the parent company City Football Group Limited; and
• six directors were appointed on 14 September this year, all of them directors of the parent company, as is John Macbeath, who was already a director upon incorporation.

Stefan says it's now the holding company for MCFC, which would mean there's been some kind of group reorganisation recently beyond simply a new group company being created. And the fact that they've given the company the authority to raise over GBP 817 million of new share capital also suggests that something is going on - especially as we're talking about a level below the group's ultimate holding company.

If anyone wants to dig around some out more, follow the respective links to the publicly available information held at Companies House for City Football Group Limited and City Football Group (Midco) Limited.

One point of interest is that the board of Midco comprises the entire board of the parent company bar one. The big-hitters are there - including Khaldoon, Simon Pearce, Marty Edelman, Egon Durban (co-CEO of Silverlake), and Abdulla Khouri (the events expert from Abu Dhabi, who chairs the company operating the Yas F1 circuit and the Emirate's leading music, sports, and entertainment events company). That seems to indicate we're dealing with a company of genuine substance, not just a minor subsidiary. Interestingly, missing is Ruigang Li, the representative of the Chinese shareholder CMC Holdings Limited, though he remains on the board of the parent company.

So, what's going on? With CFG currently engaged as an equal partner in the construction of the largest indoor arena in Europe and a USD 800 investment forthcoming on NYC FC's stadium, the obvious temptation is to ascribe the most likely reason to something relating to infrastructure development. The sum is simply too big to reflect the company wanting to create an opportunity to issue shares in the event of some vague and as-yet-unknown future need.

Another wrinkle is Li alone not being a director but remaining on the board of City Football Group Limited. Does this suggest that the Chinese shareholder is interested in CFG in general as a global business but not especially in whatever Midco will be doing? Or, especially given the dilution of its stake when Silverlake came on board, are we seeing the Chinese investor gradually slip away from the venture?

We simply don't have enough information to make even an educated guess as to what may be happening. It's probably therefore futile to speculate further, but better instead to keep a watching brief on events. For those, like me, who are football business nerds, it promises all to be very interesting and, potentially, extremely exciting.

This sort of thing generally goes straight over my head so perhaps I'm oversimplifying, but is this not linked to the NYFC new stadium? Is the Chinese board member being missing a political move given the cold war between the USA and China?

 

[KS55]

This sort of thing generally goes straight over my head so perhaps I'm oversimplifying, but is this not linked to the NYFC new stadium? Is the Chinese board member being missing a political move given the cold war between the USA and China?

Could be for the huge fine about to be imposed by the PL.
More seriously, the Chinese gov are reported to have discouraged Chinese cos from further investment in European football.

 

[Devil's Advocate]

Also on CFG, this is worth noting:



When I read this on Saturday, it was the first mention I'd seen of a new company in the structure - City Football Group (Midco) Limited. I went through its filings with the registrar of companies and what I diuscovered was as follows:

• it was incorporated in May this year;
• in July, it registered two charges, an action showing it had become a party to security agreements relating to the financial arrangements of its sole shareholder, the parent company City Football Group Limited; and
• six directors were appointed on 14 September this year, all of them directors of the parent company, as is John Macbeath, who was already a director upon incorporation.

Stefan says it's now the holding company for MCFC, which would mean there's been some kind of group reorganisation recently beyond simply a new group company being created. And the fact that they've given the company the authority to raise over GBP 817 million of new share capital also suggests that something is going on - especially as we're talking about a level below the group's ultimate holding company.

If anyone wants to dig around some out more, follow the respective links to the publicly available information held at Companies House for City Football Group Limited and City Football Group (Midco) Limited.

One point of interest is that the board of Midco comprises the entire board of the parent company bar one. The big-hitters are there - including Khaldoon, Simon Pearce, Marty Edelman, Egon Durban (co-CEO of Silverlake), and Abdulla Khouri (the events expert from Abu Dhabi, who chairs the company operating the Yas F1 circuit and the Emirate's leading music, sports, and entertainment events company). That seems to indicate we're dealing with a company of genuine substance, not just a minor subsidiary. Interestingly, missing is Ruigang Li, the representative of the Chinese shareholder CMC Holdings Limited, though he remains on the board of the parent company.

So, what's going on? With CFG currently engaged as an equal partner in the construction of the largest indoor arena in Europe and a USD 800 investment forthcoming on NYC FC's stadium, the obvious temptation is to ascribe the most likely reason to something relating to infrastructure development. The sum is simply too big to reflect the company wanting to create an opportunity to issue shares in the event of some vague and as-yet-unknown future need.

Another wrinkle is Li alone not being a director but remaining on the board of City Football Group Limited. Does this suggest that the Chinese shareholder is interested in CFG in general as a global business but not especially in whatever Midco will be doing? Or, especially given the dilution of its stake when Silverlake came on board, are we seeing the Chinese investor gradually slip away from the venture?

We simply don't have enough information to make even an educated guess as to what may be happening. It's probably therefore futile to speculate further, but better instead to keep a watching brief on events. For those, like me, who are football business nerds, it promises all to be very interesting and, potentially, extremely exciting.

Update from stefan when asked about it this morning: