CFG Expansion | Başakşehir to join? (p70)

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.

Just had a dig round and I would say Midco is has been created to be a single entity that is the parent of all the UK registered companies. Companies under it are Manchester City Ltd (the holding company of Manchester City FC), Manchester City Women's FC, City Football Services, City Football Marketing, City Football UK Holdings, City Football Investments and City Football Image Rights.
I suspect clubs and investments around the world are controlled by entities registered in those countries feeding directly into City Football Group.
 
It'S $780mil on a 49 year lease + option for further 25 years.Then we pay up to $4mil on the lease as New York own the land.

This outlay is for the stadium only.

It is no different to the new Co-op Live arena which is being built for c50% of the cost of the NYCFC stadium. The land is owned by Manchester City Council 20% and CFG 80% (or ADUG as was) and there will be a tenant/lease charge. Originally this was to be picked up 100% by Oak View but then we went into the joint venture with OAK View so effectively 50/50.

We don't know the numbers but I'm of the opposite view and that on the face of it it will be a great deal for CFG. They are the masters at this stuff!

NYCFC revenues will increase dramatically with the new stadium from matchday and commercial revenue. Much of the finance for the stadium was raised by CFG in a lower interest environment.
Think of it this way tho we paid what 50 million to convert the Etihad and got it on what 100 year lease for 4 million a year

NYCFC pay 800 plus million to build a stadium they won’t own and then pay a lease and it’s a short let lease so they get it for less time with a lot higher upfront costs
 
Think of it this way tho we paid what 50 million to convert the Etihad and got it on what 100 year lease for 4 million a year

NYCFC pay 800 plus million to build a stadium they won’t own and then pay a lease and it’s a short let lease so they get it for less time with a lot higher upfront costs
I can't see anything in the article that says we won't own the stadium?
 
Nobody think the restructuring at CFG, might be to protect Manchester City from the Cartel's future tinkering with UEFA's rules? Maybe they got wind of some proposals we don't know about.
 
I can't see anything in the article that says we won't own the stadium?
I guess I didn’t think of it like that what happens if we own the stadium but don’t renew the lease on the land that it’s on ? Won’t happen the lease bit made me think we wouldn’t own the stadium but think about it you can own a house and pay ground rent etc
 
Think of it this way tho we paid what 50 million to convert the Etihad and got it on what 100 year lease for 4 million a year

NYCFC pay 800 plus million to build a stadium they won’t own and then pay a lease and it’s a short let lease so they get it for less time with a lot higher upfront costs

Wat?
 
Unlike many stadium deals, including one for the Buffalo Bills negotiated this year by Gov. Kathy Hochul that included nearly $900 million in public funds, city officials said subsidies for this project are largely limited to infrastructure improvements at the site and property tax breaks for the stadium.

The soccer team will pay for the entire construction of the stadium, which is estimated to cost $780 million, city officials said. Neither tax-exempt bond financing nor direct city capital infusions will be used, according to Andrew Kimball, the president of the New York City Economic Development Corporation. The developers are not getting abatements on mortgage recording or sales taxes, he said. But the stadium owners will not have to pay real estate taxes for the duration of the lease.

New York City owns the land on which the stadium and housing will be built, and will lease it to the football club and to a development team that includes Hudson Yards developer Related Companies and Sterling Equities, the development company partially controlled by the Wilpon family, the former owner of the Mets.

Over the course of the 49-year lease, the team will ultimately pay rent of up to $4 million a year to lease the land for the stadium. The team will have the option for a 25-year extension.

 
I guess I didn’t think of it like that what happens if we own the stadium but don’t renew the lease on the land that it’s on ? Won’t happen the lease bit made me think we wouldn’t own the stadium but think about it you can own a house and pay ground rent etc
Plus it's a 49 year lease with an option for another 25, so no problem really
 

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