Chinese Consortium invests $400m in CFG

[gordondaviesmoustache]

I still can't believe that its my Man City from Moss Side who are at the centre of all of this.

I don't think any of us can, mate.

 

[S04]

There are already a multitude of business connections between UAE and China, there´s something like 200k chinese working for chinese companies in UAE right now so you might say that they are out in force.
UAE is the gateway to the arab world for trading nations like India, China, USA etc.

Like this Dragon mart in Dubai.. home to 4000 chinese shops and 1.2 km long.

 

[EalingBlue2]

Maybe. We'll see. I think we'll see a good few of those "regional hamster-powered edible smart watch partner" type deals we have been seeing recently, but even if we get half a dozen of them I doubt they'd add up to more than £10m. As I said before, I'd love to be proven wrong, but I just don't believe that China's economy is turning into the powerhouse it's threatening to be simply by all of their businessman chummying up to anyone who shakes hands with their President. I suspect that their businesses will want to see genuine fan capitalisation before any of them is willing to put a heavy sum into a club sponsorship.



I took a look on a Beijing Guoan fan forum out of curiosity, to see what kind of comments they might have made about previous rumours. It wasn't easy interpreting all of the comments through the Google Translate filter, but I was able to pick up some things. Unsurprisingly they latched onto the idea that we might take control of them rather quickly. As I say, it's hard to be sure, but their fans seem somewhat unhappy about the idea, although their biggest fear seems to be that we will remove the word "Guoan" from their name, which they see as essential to keeping their team's identity. Funnily enough not a single comment was made about the colours changing (since they play in green) but since every single one of their ultras groups seem to have the word "green" in their names, I'm not sure how they'd take it.

I think you are applying a western mentality to Chinese businessman. Asian business is based entirely on the relationships and who those relationships are with. Dealing with China from outside is incredibly tough as Asian businesses will frequently act based on a relationship rather than based on pure commercial reasoning. Succeeding in China will be all about connections, relationships.

As for the comment on Chinese businesses not costing up to the president, leadership and party as that is not making it a success you couldn't be further from the truth. Everything in China is based On being in favour and those connections and relationships can make you a multi billionaire, ignore them and you could be doing 30 years for corruption. These guys owe all they have to the relationships they have built and they would spend the sort of money invested in a city in a second if that is going to help them.

The reason this deal is so significant is precisely because it connects through to the leadership, it is in favour and almost certainly it was sanctioned and encouraged from very high up in the party.

Even in the more democratic Asian countries the relationships, the local elements etc are infinitely more important than anywhere in the west

 

[EalingBlue2]

One thing that has occurred to me is China are major exporters and generally only import raw materials that they need for manufacturing and luxury goods for their rapidly expanding middle and upper classes. I can't see any UK cutlery or car parts manufacturers having a hope of exporting to China as the flow of trade seems heavily weighted to exports not imports as their ongoing trade war with America suggests.

As someone pointed out, because of the 'relaxed' trademark and copyright laws they have, I wouldn't be banking on huge revenue in terms of shirt sales either. So what's in it for us? Well we'll be in pole position when football explodes in that country also notwithstanding the fact that the Chinese are awash with readies which they're more than willing to invest globally if the right opportunity presents itself.

For China, aligning itself with a major oil producers will also give them a further economic manufacturing advantage, but more than anything its on the political front where we stand to gain the most. To the watching football world, they're terrified enough as to what this deal means, but from what I can see the football side of things will pale into insignificance when compared to what this deal means in the wider global financial sense.

I still can't believe that its my Man City from Moss Side who are at the centre of all of this. Thank you Sheikh Mansour.

I don't think this deal is particularly aligning China and an oil producing country to any materiality , it is a deal dwarfed by many others and energy, tech, etc deals dwarf it. That said it can do what it is intended to do and be a tool to promote and connect the governments and countries.

The effect of this deal is going to be commercial, sponsorship etc.

There were trademark and copyright comments elsewhere, the reality on this is that the Chinese are pretty good at "protecting" their own !!!

 

[Falastur]

When I ran "Beijin Guoan" through the translator, it came up with "Peking bird shit".

Think you might have put in "guano" instead of guoan.

I think you are applying a western mentality to Chinese businessman. Asian business is based entirely on the relationships and who those relationships are with. Dealing with China from outside is incredibly tough as Asian businesses will frequently act based on a relationship rather than based on pure commercial reasoning. Succeeding in China will be all about connections, relationships.

As for the comment on Chinese businesses not costing up to the president, leadership and party as that is not making it a success you couldn't be further from the truth. Everything in China is based On being in favour and those connections and relationships can make you a multi billionaire, ignore them and you could be doing 30 years for corruption. These guys owe all they have to the relationships they have built and they would spend the sort of money invested in a city in a second if that is going to help them.

The reason this deal is so significant is precisely because it connects through to the leadership, it is in favour and almost certainly it was sanctioned and encouraged from very high up in the party.

Even in the more democratic Asian countries the relationships, the local elements etc are infinitely more important than anywhere in the west

I'm not applying western standards to Chinese businessmen. I know that there is a certain amount of cronyism expected in China. I'm applying western standards to economics. Just because Chinese culture demands certain levels of respect, sucking up etc does not mean that business models will instantly fall into line too.

Say that some Chinese national bank decides to follow the line advocated in this thread and offers us some huge deal to replace the Etihad shirt sponsorship, right now. How exactly would they get their money back on it and make a profit? Non-Chinese people aren't going to bank with them do that's a bust. We don't have a CSL team yet so there's no pitchside revenue to be made in China, and our market share of PL fans is not great - I know that the club said we have 80m Chinese fans already but I suspect that that came from the acme line of speculative figures that produced the rags' 659m some time ago. They aren't going to see hordes of Chinese City fans queueing outside their branches to transfer all of their savings in. So where does the deal make them enough money to be profitable?

 

[john@staustell]

Think you might have put in "guano" instead of guoan.



I'm not applying western standards to Chinese businessmen. I know that there is a certain amount of cronyism expected in China. I'm applying western standards to economics. Just because Chinese culture demands certain levels of respect, sucking up etc does not mean that business models will instantly fall into line too.

Say that some Chinese national bank decides to follow the line advocated in this thread and offers us some huge deal to replace the Etihad shirt sponsorship, right now. How exactly would they get their money back on it and make a profit? Non-Chinese people aren't going to bank with them do that's a bust. We don't have a CSL team yet so there's no pitchside revenue to be made in China, and our market share of PL fans is not great - I know that the club said we have 80m Chinese fans already but I suspect that that came from the acme line of speculative figures that produced the rags' 659m some time ago. They aren't going to see hordes of Chinese City fans queueing outside their branches to transfer all of their savings in. So where does the deal make them enough money to be profitable?

So were fucked then?

 

[Falastur]

So were fucked then?

Huh? Think you need to read my other posts in this thread. I always said this deal was huge, but I think CFG are looking at the long term with this one - this deal allows us to slowly take over the chinese market in a way which will pay off in a big way in about 10 years but will have to slowly work it's way up to that level. I just think people are overreacting in a fairly understandable way - football fans do, after all, tend to view everything with our blue-tinted specs on - and viewing this framed in the basis of best possible outcomes. I on the other hand am trying to interpret this in terms of what is most likely to happen, and I think this deal is a slow burner with amazing potential, just not in the short term.

 

[daztrueblue91]

Think you might have put in "guano" instead of guoan.



I'm not applying western standards to Chinese businessmen. I know that there is a certain amount of cronyism expected in China. I'm applying western standards to economics. Just because Chinese culture demands certain levels of respect, sucking up etc does not mean that business models will instantly fall into line too.

Say that some Chinese national bank decides to follow the line advocated in this thread and offers us some huge deal to replace the Etihad shirt sponsorship, right now. How exactly would they get their money back on it and make a profit? Non-Chinese people aren't going to bank with them do that's a bust. We don't have a CSL team yet so there's no pitchside revenue to be made in China, and our market share of PL fans is not great - I know that the club said we have 80m Chinese fans already but I suspect that that came from the acme line of speculative figures that produced the rags' 659m some time ago. They aren't going to see hordes of Chinese City fans queueing outside their branches to transfer all of their savings in. So where does the deal make them enough money to be profitable?

It is not going to be a short term investment though.

No doubt we'll take a leaf out of United and Liverpool's book and use the close connections with the Chinese media to drill home a positive pro MCFC/CFG message. Add to the fact we play attacking and attractive football, it won't be long before we attract a mass of fans from China.

The more our popularity rises the more businesses will want to be part of the MCFC gravy train.

Then we also have current sponsors who by being associated with us will get brand exposure in China. That in itself should bring us increased forms of revenue.

 

[Falastur]

It is not going to be a short term investment though.

No doubt we'll take a leaf out of United and Liverpool's book and use the close connections with the Chinese media to drill home a positive pro MCFC/CFG message. Add to the fact we play attacking and attractive football, it won't be long before we attract a mass of fans from China.

The more our popularity rises the more businesses will want to be part of the MCFC gravy train.

Then we also have current sponsors who by being associated with us will get brand exposure in China. That in itself should bring us increased forms of revenue.

I completely agree, I just don't think it's going to happen in a single season, and I think that there is only so far we can go based on selling MCFC in China. After all, being big in China hasn't got the rags or dippers or anyone else a huge Chinese sponsorship yet, has it? What we need to bring in the truly revolutionary deals is to sell CFG in China, and as Melbourne and NYC have shown, buying a club and building it into the biggest club in its country is not CFG views as a one or two year project, same as from the very start they were talking about winning the PL with us as their goal at the end of a five-year plan. I think when the CFG China team becomes huge, THEN we'll really see the chinese fans jump onto the MCFC brand in unprecedented ways, and at the same time we'll see the big bucks start to fly in.

 

[Sir peace frog]

will we get a red away kit?