CFG financial results plus increased Chinese stake

bluekeith

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Just saw this feel free to move

http://www.insideworldfootball.com/2018/03/18/manchester-city-parent-posts-71-million-loss/

March 18 – City Football Group Limited, the Abu Dhabi- and Chinese-owned entity that holds investments in various football clubs including Premier League champions-elect Manchester City, has posted a £71 million loss from continuing operations for the 13 months to 30 June 2017.

This is not far off double the £37 million loss reported for the previous year. The group attributed this to its US club, New York City FC, and “newly formed service companies” continuing to build their business.

While the group holds investments in Melbourne City, Yokohama F Marinos of Japan, Club Atlético Torque in Uruguay and now Girona FC in Spain, as well as New York City, its figures are dominated by Manchester City.

Out of £514.3 million of revenue in the latest period, the English club generated £473.4 million, with New York City contributing £30.1 million and Melbourne City £8.4 million. The business review underlined that Manchester City had paid its players two Champions League qualification bonuses, presumably as a consequence of the extended reporting period. The club earlier reported a tiny pre-tax profit for 2016-17 of just £104,000.

The group is now 86%-owned by Sheikh Mansour bin Zayed Al Nahyan’s Abu Dhabi United Group Investment and Development and 14% by China Media Capital Holdings (CMC).

In July 2016, some 18.4 million shares were issued to CMC at £3.96 a share. This £72.9 million investment took the Chinese company’s stake in City Football Group to 14%. It had initially paid $400 million for a 13% interest in 2005.

CMC founding chairman Ruigang Li sits on the City Football Group board. The Chinese football market is said to be “important to the growth opportunities of the group”.

Since the year-end, City Football Group has also taken 50% of Goals City US, a joint venture with Goals Soccer Centres, an operator of five-a-side facilities.
 

taleofbluehalves

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When you look at the growth in revenue at City in the last 8 years, even taking out the TV money,it’s massive. Similar growth in the teams in the group and its going to be huge.
 

bluekeith

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A question for somebody smarter than me are the bonuses paid by the group accounts or club accounts ?
 

Prestwich_Blue

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In the last few days City Football Group have published their financial results for the year. CFG is the entity majority owned by Abu Dhabi, with a minority Chinese stake, that is the holding company for all ADUG's football interests in the UK and abroad.

City themselves made a small, £1m profit but CFG recorded an increased loss, going from a loss of £37m last year to a loss of £71m this year. Most of that appears to be attributable to NYCFC. Total revenue was £514m of which £40m came from outside the UK. So City are by far the largest part of the group, contributing over 90% of revenues.

The other interesting bit of information is that Chinese group CMC, who bought 13% of CFG for just over £260m back in 2015, bought another 1% in July last year but this time paying £73m for that stake. This means that they have a 14% stake in CFG, which they've paid about £335m. Doingthe maths, that makes CFG worth around £2.4bn, with Sheikh Mansour's 86% alone worth £2bn. As he's invested (as far as I can see) around £1.4bn so far, that's a tidy little return.

For comparison purposes, the rags are currently valued at $3.25bn, which is about £2.3bn at current exchange rates. Therefore we are a little bit more valuable than they are currently.

Also the two associated companies City Football Marketing (CFM) and City Football Services (CFS), which provide technical and marketing services to CFG also reported their results. These two companies employ about 150 staff formerly employed by City and make money by carrying out services on behalf of group companies (scouting, performance monitoring, doing commercial deals, etc) and charging the group companies, mainly City currently, for those services. The intention is that they become self-sustaining in time, with their revenue at least covering their costs but thay're not there yet.

However they are moving in the right direction. CFM reduced losses from £16m to £11m and CFS from just under £15m to £3.6m.
 

KS55

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I would venture to suggest that those parts of the empire which are not football clubs as such, e.g. academies,
e sports, will become very important as time goes on: spreading the word, gaining support, maximising the brand.
It's like a dream, is this really liddle old citeh ? Loving it.
 

bluekeith

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I know the City group have offices in london where else do they have offices ? and how many people does the group employ ?
 

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