Chinese Consortium invests $400m in CFG

[daztrueblue91]

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.

I think in the short term we will see an sharp increase in turnover.

I wouldn't be surprised to see a lucrative Chinese deal sponsor the CFA and a revised Etihad and Nike deal.

However, like you said it will be a long term process and if we can add a Chinese team to the CFG and make them successful, the money will really role in.

 

[CheethamHillBlue]

I think in the short term we will see an sharp increase in turnover.

I wouldn't be surprised to see a lucrative Chinese deal sponsor the CFA and a revised Etihad and Nike deal.

However, like you said it will be a long term process and if we can add a Chinese team to the CFG and make them successful, the money will really role in.

In the short term, sorting this deal out 7 or 8 months before we get Pep & Messi will mean we have that publicity in place BEFORE they join and The Chinese will buy their City shirts with Messi printed on them by the bucketful.

Hopefully. ;-)

 

[chesterguy]

To anyone who doubts the idea of being in with the President wont be good for business

Chinese demand for IPA up 1,600% after Xi Jinping visit
Greene King’s export team putting extra effort into building contacts with importers of British beer to China

Greene King is shipping 50,000 cases of India pale ale to China following a surge in demand after President Xi Jinping drank a pint of the beer with David Cameron on his state visit to the UK.

The Suffolk brewer said demand for IPA from China had increased by 1,600% after Xi’s visit to Greene King’s pub The Plough at Cadsden in October. He and Cameron drank beer and ate fish and chips at the pub, close to the prime minister’s Chequers country residence.

Beer importers in China reported a spike in demand for IPA after pictures of the pair appeared on social media. The Chinese Communist party liked the image because it is seeking to portray Xi as a man of the people.

Rooney Anand, Greene King’s chief executive, said the order boom coincided with Chinese new year in February. He said: “If the British prime minister chooses to drink IPA that’s normal but if the president of China chooses to drink a certain drink it attracts lots of interest. We’ve had a sixteen-fold increase in orders from China for IPA in the last few weeks and 50,000 cases are on a boat now to arrive in time for Chinese new year.”

Anand said his export team were putting extra effort into building contacts with importers of British beer to China, where the year of the monkey starts on 8 February. Greene King’s beers, which also include Abbot and Old Speckled Hen, mainly go to markets with a longer tradition of drinking British beer, he said. “I’m very hopeful that China will see the merits of English beer and IPA in the same way that they have about red wine.”

In its first half results, the brewer and operator of more than 3,000 pubs reported sales up 2% at its owned pubs and restaurants open a year or more. Pre-tax profit, excluding operations added through its purchase of 1,200 Spirit pubs, rose 5.9% to £87.5m in the 24 weeks to 18 October.

The first-half dividend increased 6.3% to 7.95p a share, and Greene King, based in Bury St Edmunds, increased its estimate for savings from the Spirit acquisition by £5m to £35m.

Greene King shares rose 8.5% to 925p in early trading on Wednesday, their highest since July 2007.

http://www.theguardian.com/business...nd-greene-king-ipa-up-1600-percent-xi-jinping

 

[Dribble]

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 !!!

The exciting thing is just like everyone else, you and I are just pontificating as to what exactly this deal means. To elaborate further, Manchester City Football Club turned an £11m profit (if memory serves me right), so why would the Chinese invest £265m for a 13% portion of that figure? Ok we also have CFG as a whole, but has that ever turned a profit yet? Increased shirt sales in China would have to be pretty hefty for our Chinese partners to see a decent 13% return of Man City's percentage of kit sales, because as far as I'm aware don't clubs generally just get a licence fee for every official shirt sold?

The Chinese are no mugs and if all this is correct, it begs the question, what's in it for them? Why all the high level delegates visiting the Etihad culminating with a visit of the Chinese and UK Prime Ministers? Why would one of the richest men from one of the richest countries on planet earth want to create an additional 13% worth of shares to sell to China? I mean, its not as if Sheikh Mansour needs the money.

This partnership is going to shock the shit out of everyone as the potential of it begins to be unravelled. If Abu Dhabi and the Chinese just signed a trade agreement as most countries do it would barely have made the news or flickered anyone's interest. BUT as soon as this partnership is structured and announced in football terms, the whole world has sat up, listened and taken notice. Could they have marketed this partnership any better? Mithinks not.

If any other club was in our position right now, out of fear I'd be passing nuff poo! So please everyone, spare a thought for the Trafford Rangers over in Salford. We're OK, but do they know its Christmas time at all? :-)

 

[Dribble]

will we get a red away kit?

We already had a black & red striped away strip, so we're already half way there.........

 

[Sigh]

We've come a long way since we wouldn't play rugby with some folks.

 

[BluessinceHydeRoad]

There has been much talk about the Chinese view, western economics, gateways to the Arab world and so on, but many on here are taking a Manchester United/Liverpool/Arsenal etc view of what is a complex deal. The basic viewpoint is "what's in it for us?" How many more shirts will we sell? How soon will our turnover grow and what will it grow to? I think Falastur has identified the fatal flaw at the heart of this view when he wrote "I think there is only so far we can go based on selling MCFC in China." The Chinese will never support a western football club and get up at God knows what time to watch it. As in New York and Melbourne their loyalties will remain largely local. A global game with very local loyalties. In 25 years of trying UEFA has not persuaded supporters that a Manchester-Munich rivalry is more fun or more enduring than a Manchester-Manchester one.

This deal is NOT with City though. It is with the CFG and there is a vital difference. It is also the Chinese who are putting up the $400 million and it is quite clear they want more than a seat on the board. It seems clear that they want the world cup, possibly in 2026, and they want to a major contender. We saw how seriously the Chinese prepare for major sporting occasions when they hosted the Olympics in 2008. Put crudely, in football terms they want to do for China what Sheikh Mansour has done for City and is doing now in New York and Melbourne; turning under achievers and/or those with no tradition of achievement in the sport into power houses. The CFG will get massive help from the Chinese authorities and investment in football and infrastructure is likely to be massive. Our new member of the board spent $1.3 billion (compared to $8 million the previous year!) to secure the TV rights, smply so that clubs would have money to invest. CFG are in a unique position to benefit from this. I can only contemplate the opportunities by gaping open mouthed but I know that the people who will know for certain how to make sure the Chinese achieve their aims and that the CFG benefits enormously are all in post at the CFG, though others will be brought in as and when.

CFG is not after a quick buck and isn't concerned with "what's in it for us?" It works on the principle that genuine partnership, meeting needs and satisfying ambition, is the way to lasting growth and prosperity. It's worked in east Manchester - just sit back and watch China!

 

[chesterguy]

But the potential for City is huge and I would say quicker than many realise.

The jewel in CFG is City but the gold band is the other clubs who have a prescence around the world. Which Corporation in the world with products to sell to those markets would not want to pay to get on board and be associated with such a well known group

Of course its not about selling City shirts in China thats what other supporters dont seem to have grasped. This is about the global reach of the CFG and what opportunities that provides sponsors in rasing their brand awareness across the globe. As we have seen in Thailand with the raft of sponsors we have gained there expect the same but with much more scope and breadth from wealthy companies from China

 

[Dribble]

I would also expect movement very soon for us in Africa. The Chinese are all over it and are trying to influence the more stable governments to their own advantage. As will happen with any advancing nation, the more the wealth trickles down and the standard of living increases the less competitive companies will become on price.

The Chinese saw this coming and have begun building manufacturing outlets, road, rail and shipping infrastructure in Africa where labour is still relatively cheap so they can continue their global economic expansion. Africa is seen as the last place left which can be economically maximised on a truly global scale and the Chinese have well and truly got their feet under the table where that is concerned.

 

[Akai]

Crown prince of Abu Dhabi is visiting China for 3 days, Khaldoon is there with him.

Will be interesting to hear if the deal will get discussed during the visit.