City borrow money from Barclays against TV revenue - any cause for concern?

[mscenterh750]

Swales is god, the sheikh and pep are Arthur Daley and Dennis Waterman.

Out out out out out

 

[jrb]

Man City Square.

Eagle eyed fans noticed some strange business activity by Manchester City at the end of June 2019.

Documents lodged at Companies House in London suggest that Manchester City have entered a loan agreement with Barclays Bank. Whilst this is not unusual for most football clubs it has not happened on this scale before for Manchester City since the takeover by Sheik Mansour.


Since the takeover, investment has been provided through a complex arrangement of sponsorship and direct funding from the owner. Despite the range of development both into the area of East Manchester where the club is based and continued investment in the first team, to date this has been provided from within the club.

The amount of the loan is not revealed in the published documents but appears to offer the collateral of 2018/19 TV revenue as security. Similar agreements have usually been undertaken by other Premier League clubs – in effect borrowing the full amount of the TV revenue in advance and repaying in instalments as the TV is released. Other clubs such as Everton have used these arrangements to fund transfers for players.

Speculation has mounted amongst fans that the sum of money involved in the loan – potentially up to £150 million – suggests Manchester City are preparing to commit to breaking their transfer record and perhaps the World Transfer Record. Given Manchester City these days are run as a business and generate their own revenue, fans believe the huge sum borrowed points to a massive transfer signing.

Most transfers are paid in instalments so increasing available capital by £150 million provides a huge potential spending power which may make other clubs wary as we approach the end of the Summer Transfer Window.

Of course there could be a more mundane reason for the loan to support further development of the Etihad stadium given owners wish to extend the capacity to over 60,000 but fans will more likely prefer the romantic version. It may be time to dream the impossible dream – Messi, Hazard, Bonnucci, Thiago – or even all of them.

------------------------------------

Money for MMU Sports Science Campus proposal, and/or accommodation for 1000 Students? (Or the North Stand expansion proposal, as mentioned above?)

Will be posted in the Etihad Campus thread as well.

Skyscrapercity, Manchester, Etihad Campus thread.

Originally posted by AJD.

Updated framework.

Option 1

Option 2

Option 3

13 - The Eastlands Regeneration Framework: Update (Part A) (5.08 MB, PDF)

http://www.manchester.gov.uk/downlo...astlands_regeneration_framework_update_part_a

 

[aguero93:20]

Man City Square.

Eagle eyed fans noticed some strange business activity by Manchester City at the end of June 2019.

Documents lodged at Companies House in London suggest that Manchester City have entered a loan agreement with Barclays Bank. Whilst this is not unusual for most football clubs it has not happened on this scale before for Manchester City since the takeover by Sheik Mansour.


Since the takeover, investment has been provided through a complex arrangement of sponsorship and direct funding from the owner. Despite the range of development both into the area of East Manchester where the club is based and continued investment in the first team, to date this has been provided from within the club.

The amount of the loan is not revealed in the published documents but appears to offer the collateral of 2018/19 TV revenue as security. Similar agreements have usually been undertaken by other Premier League clubs – in effect borrowing the full amount of the TV revenue in advance and repaying in instalments as the TV is released. Other clubs such as Everton have used these arrangements to fund transfers for players.

Speculation has mounted amongst fans that the sum of money involved in the loan – potentially up to £150 million – suggests Manchester City are preparing to commit to breaking their transfer record and perhaps the World Transfer Record. Given Manchester City these days are run as a business and generate their own revenue, fans believe the huge sum borrowed points to a massive transfer signing.

Most transfers are paid in instalments so increasing available capital by £150 million provides a huge potential spending power which may make other clubs wary as we approach the end of the Summer Transfer Window.

Of course there could be a more mundane reason for the loan to support further development of the Etihad stadium given owners wish to extend the capacity to over 60,000 but fans will more likely prefer the romantic version. It may be time to dream the impossible dream – Messi, Hazard, Bonnucci, Thiago – or even all of them.

------------------------------------

Money for MMU Sports Science Campus proposal? (Or the North Stand expansion proposal, as mentioned above?)

Will be posted in the Etihad Campus thread as well.

Skyscrapercity, Manchester, Etihad Campus thread.

Originally posted by AJD.

Updated framework.

Option 1

Option 2

Option 3

13 - The Eastlands Regeneration Framework: Update (Part A) (5.08 MB, PDF)

http://www.manchester.gov.uk/downlo...astlands_regeneration_framework_update_part_a

If it was about breaking the world transfer record we could ask Mansour for the money. If it was about self sufficiency...

 

[jrb]

If it was about breaking the world transfer record we could ask Mansour for the money. If it was about self sufficiency...

Either way, there has to be a reason for the loan. People and companies as a rule only take out a loan if they want to buy, invest, or clear debt.

It's probably something boring, that we'll eventually find out about.

Until then, let's keep on guessing and create some fake MCFC news about the loan. :-)

 

[Newquayblue]

Big buy on the way!

 

[Proy]

Either way, there has to be a reason for the loan. People and companies as a rule only take out a loan if they want to buy, invest, or clear debt.

It's probably something boring, that we'll eventually find out about.

Until then, let's keep on guessing and create some fake MCFC news about the loan. :-)

Yes there is a reason. Its been explained.

It's a loan to cover our basic operating costs through the year whilst we wait for the TV money or any other form of cash injection that we don't bank periodically.

The uneducated will use this as some sort of tool to beat us with about us not being profitable blah blah.

It's actually the opposite. Clearly the Sheik wants us to manage our own cash flow and be entirely self sufficient.

In the past this will have come from his own pocket until the TV money came in.

Our revenue dictates how we spend, its not as simple as going spending 200 million on 2 or 3 players.

 

[aguero93:20]

Yes there is a reason. Its been explained.

It's a loan to cover our basic operating costs through the year whilst we wait for the TV money or any other form of cash injection that we don't bank periodically.

The uneducated will use this as some sort of tool to beat us with about us not being profitable blah blah.

It's actually the opposite. Clearly the Sheik wants us to manage our own cash flow and be entirely self sufficient.

In the past this will have come from his own pocket until the TV money came in.

Our revenue dictates how we spend, its not as simple as going spending 200 million on 2 or 3 players.

Saved me a post. Well written btw.

 

[jrb]

Yes there is a reason. Its been explained.

It's a loan to cover our basic operating costs through the year whilst we wait for the TV money or any other form of cash injection that we don't bank periodically.

The uneducated will use this as some sort of tool to beat us with about us not being profitable blah blah.

It's actually the opposite. Clearly the Sheik wants us to manage our own cash flow and be entirely self sufficient.

In the past this will have come from his own pocket until the TV money came in.

Our revenue dictates how we spend, its not as simple as going spending 200 million on 2 or 3 players.

Fair enough.

Something boring, but factual and important.

So, where is the MMU Sports Science, Student accommodation, and Leisure zone money going to come from in the future?

From Shielkh Mansour, as he is still allowed to invest in the club outside the team, or from loans?

Is he funding Manchester Life, along with MCC, which is building BTR Apartments across Ancoats and New Islington?

I'd have thought anything on the Etihad Campus or close to it which can return a future profit for the club would be funded by the club or Sheikh Mansour/ADUG directly.

Either way, all fun and games and keeps the guessing game going.

 

[aguero93:20]

Fair enough.

Something boring, but factual and important.

So, where is the MMU Sports Science, Student accommodation, and Leisure zone money going to come from in the future?

From Shielkh Mansour, as he is still allowed to invest in the club outside the team, or from loans?

Is he funding Manchester Life, along with MCC, which is building BTR Apartments across Ancoats and New Islington?

I'd have thought anything on the Etihad Campus or close to it which can return a future profit for the club, would be funded by the club or Sheikh Mansour/ADUG directly.

Either way, all fun and games and keeps the guessing game going.

Pretty sure the investment for all those things is separate from the club, the club doesn't own anything outside the campus.

Doesn't mean the club won't benefit from it though.

 

[Proy]

Fair enough.

Something boring, but factual and important.

So, where is the MMU Sports Science, Student accommodation, and Leisure zone money going to come from in the future?

From Shielkh Mansour, as he is still allowed to invest in the club outside the team, or from loans?

Is he funding Manchester Life, along with MCC, which is building BTR Apartments across Ancoats and New Islington?

I'd have thought anything on the Etihad Campus or close to it which can return a future profit for the club, would be funded by the club or Sheikh Mansour/ADUG directly.

Either way, all fun and games and keeps the guessing game going.

As ag93:20 said, it'll be separate investment.

The sheik can invest all he likes but I'd imagine, at some point, he's going to want to be doing the opposite.

Getting us to this point ensures he can take some profit moving forwards

Remember we have great people looking after us. We are a rapidly expanding business and will be increasing revenue YOY.

We are here to stay (for any lurking rags)