Chinese Consortium invests $400m in CFG

Well at least we understand Sun's Hall of Fame induction now.

Seems a good next step onwards and upwards this deal.
 
Great deal, they only own 13% but we have access to an incredible revenue stream. Will have a lot of jealous fans of other clubs saying the sheikh is selling up but that is nonense. China is a very very wealthy country and the value of City will explode over the next few years. This can only be good news all round.
 
chesterguy said:
The capital from the share acquisition will be used by City Football Group to fund its China growth, further CFG international business expansion opportunities and further develop CFG infrastructure assets.

I would suggest that more clubs are on their way!!

To those saying the sheikh is selling up complete and utter nonsense. He still owns City 100% he has just sold a minority share in CFG. It might be interesting to see if he were to do something similar with a South American consortium. Who wouldnt want the largest most influential Media group of a particular market on board. Who knows Sky may end up with a minority stake at some point.. :)
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He does not 'still own city 100%'

There is a holding company (CFG). The holding company owns 100% of each subsidiary, including Manchester City.

He has sold a stake in the holding company. Or being more accurate, rather than selling some of his shares, they have created extra shares. Whilst the end result is the same (the sheik now owns 87% of the holding company), by creating extra shares it means the money paid by the Chinese for the shares goes into CFG's coffers rather than the sheik's personal coffers
 
totallywired said:
I suspect it is due to the collapse of oil. The owners will also have other projects to fund.
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Makes sense. I read a few years ago that they knew one day they wouldn't be able to rely on it for whatever reason so were investing in "other areas".

I'm a bit sad that Adug don't fully own us but they still have the majority stake by far.

And can you imagine what our financial figures area going to look like in a year's time?
Or even in 2, 5, 10 years?

Omfg, I believe, is the term.
 
The Silver Surfer said:
Makes sense. I read a few years ago that they knew one day they wouldn't be able to rely on it for whatever reason ago we're investing in "other areas".

I'm a bit sad that Adug don't fully own us but they still have the majority stake by far.

And can you imagine what our financial figures area going to look like in a year's time?
Or even in 2, 5, 10 years?

Omfg, I believe, is the term.
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Nothing to do with the value of oil Its a strategic move to get into the world's biggest market, it makes sense in every possible way, selling a small part to add additional funds is a small price to pay. 87% is more than enough to control the club / group
 
Prestwich_Blue said:
Just heard this on the news. I suspect it's a way of promoting Abu Dhabi in China and deepening the business relationship between China & the UAE. It will be interesting to see if it brings any commercial opportunities for City and the clubs in the group.

As I read it, Sheikh Mansour still owns 100% of ADUG, ADUG owns 87% of CFG, with the Chinese consortium owning the other 13%, and CFG owns 100% of MCFC. The key thing is, as others have said, is that it puts a value on CFG of around $3bn/£2bn.
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I tend to agree. We know ADUG are about promoting themselves, and City are a vehicle for that.
Access to Chinese Media will presumably open a number of doors in Asia, albeit with some downsides inevitable.
 
lancs blue said:
That visit by the Chinese Premier was clearly more than just a courtesy call!
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There will be a few slapped area expressions amongst the sports journos today. What happened to the Chinese really wanted to go to the swamp but the Council wouldn't allow them lol!
 
Presumably the £265m investment received is recorded as revenue? Our next set of accounts are going to be eye-opening that's for sure.

Like others, I hope this isn't the first sign of Sheikh Mansour reducing his involvement.
 
BillyShears said:
Obvious question. How will this impact City's bottom line and what sort of knock on effect could it have on our potential to spend in next summer's transfer window ?
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I suspect very little if any. From the article on the official website they say this about the plans for the investment capital:-

The capital from the share acquisition will be used by City Football Group to fund its China growth, further CFG international business expansion opportunities and further develop CFG infrastructure assets.
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So they are saying the $400m is earmarked for those specific purposes, which doesn't ;eave any for playing squad investment.

It does actually raise an interesting question, and one which I don't actually think FFP has been set up to deal with. How much of the $400m, if any, would ADUG be allowed to spend on buying players for Manchester City FC? How much of the $400m was actually "spent" on Manchester City FC? If the CFG as a whole is now valued at just over $3Billion how much of that $3Billion value is provided by Manchester City FC? Manchester City are clearly the flagship club of the CFG world, highest profile by a distance, biggest draw for sponsorship etc. If we say, for arguments sake, that 70% of CFG's value is Manchester City, with Yokohama, Melbourne and New York providing the remaining 30% of value, then 70% of the $400m investment was achieved by Manchester City, that would mean $280m or £185m of the investment was Manchester City's. In that scenario, could ADUG spend £185m on City's playing staff, and claim via FFP that it was "income generated by Manchester City FC"? After all, without Manchester City FC, the value of the CFG was be dramatically reduced. How exactly does FFP approach share capital as a means of generating income? This is different to Sheikh Mansour simply "creating" another 1 million shares and buying the himself (as a means of investing in the club himself, or covering club debts), this is a legitimate sale of a portion of the CFG group to an independent external party.

@Prestwich_Blue any ideas?
 
Wow..the Sheikh doesn't fuck about

Tapping into China

He really is going to make us the biggest club in the world

It's bizarre to think how far we have come since 2008

Pretty scary actually

Where the hell are we going to be in another 10 years?!
 
mansour's tow ropes said:
Presumably the £265m investment received is recorded as revenue? Our next set of accounts are going to be eye-opening that's for sure.

Like others, I hope this isn't the first sign of Sheikh Mansour reducing his involvement.
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If he did the club would not go back to the bad old days of Pearce and Joey Barton. City is now a money making machine and there would be a cue of people lining up to take control, why do you think the Chinese wanted to stick some money in.

Mansour's reach is going everywhere from City,Ferrari to Real Madrid. He probably wants in on the construction in China and this is a way to get it.
 
mansour's tow ropes said:
Presumably the £265m investment received is recorded as revenue? Our next set of accounts are going to be eye-opening that's for sure.

Like others, I hope this isn't the first sign of Sheikh Mansour reducing his involvement.
Click to expand...
It's not revenue as it all goes on the balance sheet but it is cash in the bank. @Matty - there's no FFP impact as far as I can see as that's all revenue based. But the cash could potentially be used to pay for Messi.
 
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