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CFG financial results plus increased Chinese stake
- Thread starter bluekeith
- Start date
Tricky_Trev
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Bored ;)Why have ADUG sold more shares to the Chinese investors?
They obviously don't need the cash and our revenue looks to be going up at a rapid rate so why miss out on some of that?
Exeter Blue I am here
Well-Known Member
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.
How much will we have to play with transfer budget wise this summer do you reckon PB?
Prestwich_Blue
Well-Known Member
Hard to say. Depends who goes as it's much about wages as about having the cash to buy players. Also will depend on contract extensions to reduce amortisation. Wouldn't surprise me if we spent up to £200m though.How much will we have to play with transfer budget wise this summer do you reckon PB?
Might be a problem with the Etihad sponsorship as Etihad are in a little bit of trouble.What with the German administratior looking to get €1 billion out of them for letting Air Berlin go under. and Alitalia sucking the financial life out of them .
deegee33
Well-Known Member
Prestwich blue, just arrived home from work and so glad you are on the job to help me to understand the numbers. Thanks for chiming in, you make it understandable and explainable to the rag cretins. Thanks again for sharing your knowledge.
BlueAnorak
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To make sure we have enough spare cash in the bank to deal with possible FFP 'service' issues is my guess. It confirms the value of the club and is spookily close to the loss that City Footbaĺl made. As I have previously stated, the 14% will continue to rise till City get a Chinese club in the stable.Why have ADUG sold more shares to the Chinese investors?
They obviously don't need the cash and our revenue looks to be going up at a rapid rate so why miss out on some of that?
BlueAnorak
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Probably more with FFP 2.0 clicking in the season after. This summer is probably the last chance to spend big.Hard to say. Depends who goes as it's much about wages as about having the cash to buy players. Also will depend on contract extensions to reduce amortisation. Wouldn't surprise me if we spent up to £200m though.
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oakiecokie
Well-Known Member
Colin is this just something thats on your wish list,or has there been anything positive from City with regards to stadium increase.That reminds me. We'll be expanding the stadium adding to match-day revenue but the real biggie will be the development of the collar site. The revenue boost from that could leave the rest dead in the water.
I know its been suggested before,but it seems to have died a death as of late.
Prestwich_Blue
Well-Known Member
As far as I'm aware it's still planned. I've seen people on here who've said it might start this summer.Colin is this just something thats on your wish list,or has there been anything positive from City with regards to stadium increase.
I know its been suggested before,but it seems to have died a death as of late.