CFG Expansion | Başakşehir to join? (p70)

[WRicko]

Did the Bahia deal go through ?

 

[west didsblue]

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

The Maine Road site was also given to the council as part of the deal which did not have an insignificant value. We got a good deal with the Etihad, as it was for the council, but it wasn't a complete giveaway by the taxpayer like the London Stadium to West Ham.

 

[Newquayblue]

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

This is amazing- and, as I’m sure everyone is aware, same model as in East Manchester- guess that was practice for Queens lol

 

[youngbob]

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

You'd have thought with all that money they'd have named it something better than "Stadium Name". It's original, though, I'll give them that.

 

[bobbyowenquiff]

This is amazing- and, as I’m sure everyone is aware, same model as in East Manchester- guess that was practice for Queens lol

But apparently it's nothing to do with investment to make huge profits. We are expected to believe that Sheikh Mansour is carrying out these huge projects across the globe as some sort of giant "sportswashing" exercise. It would have been much cheaper to hire a PR company!

 

[Newquayblue]

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.

Very interesting post - thanks

 

[WRicko]

I assume the Midco suffix has come from somewhere a google for existing companies with that name and closest match is

Midco - Wikipedia

en.m.wikipedia.org

They could be interested in becomeing partners with CFG given their interest in broadcasting sport and internet services.

CFG make a big deal of the possibilities of internet be it using it to share data or perhaps entertainment

Wondering if NYCFC are ditching or can ditch Yes Network and replacement them with Midco

 

[Devil's Advocate]

I assume the Midco suffix has come from somewhere a google for existing companies with that name and closest match is

Midco - Wikipedia

en.m.wikipedia.org

They could be interested in becomeing partners with CFG given their interest in broadcasting sport and internet services.

CFG make a big deal of the possibilities of internet be it using it to share data or perhaps entertainment

Wondering if NYCFC are ditching or can ditch Yes Network and replacement them with Midco

Apple took over MLS rights a few months back in a $2.5billion deal and as a consequence it ended the YES deal with NYCFC

As an aside, Mubadala own 13% of the YES Network.

As another (unconnected) aside, Mubadala have a £1.2billion invstment in UK company CityFibre. Great name :)

CityFibre Secures £300m from Mubadala, Reaches 1.5 Million UK Homes

CityFibre, a UK fiber-to-the-premises (FTTP) overbuilder, announced that Mubadala Investment funds committed an incremental £300m of equity to the company.

dgtlinfra.com

 

[mattcity5]

You'd have thought with all that money they'd have named it something better than "Stadium Name". It's original, though, I'll give them that.

I'd guess there'd be some kind of huge sponsorship deal and stadium naming rights.

 

[bobbyowenquiff]

I assume the Midco suffix has come from somewhere a google for existing companies with that name and closest match is

Midco - Wikipedia

en.m.wikipedia.org

They could be interested in becomeing partners with CFG given their interest in broadcasting sport and internet services.

CFG make a big deal of the possibilities of internet be it using it to share data or perhaps entertainment

Wondering if NYCFC are ditching or can ditch Yes Network and replacement them with Midco

This may be Sheikh Mansour preparing for a future where football clubs will own their own content and broadcasting rights. Clubs will broadcast matches direct to their own fans and cut out the middle men. To do this this they will (at least in the medium term) partner with firms who specialise in this area. This will be a painful goodbye to organisations like SKY and BT and will kill off the crooks at FIFA and UEFA.
Some sort of Superleague is inevitable because the revenues involved will be staggering, a huge increase on the current broadcast deals. I am not saying this will automatically be a good thing for fans but history has shown that you can't stop the march of technology. CFG could be offering pay-per-view broadcasts of all kinds including football and boxing/music/esports/basketball at the new Co-op arena. The same sort of opportunity would be on the cards in New York with the new investment there.