City & FFP | 2020/21 Accounts released | Revenues of £569.8m, £2.4m profit (p 2395)

[Prestwich_Blue]

The structure of Chelsea's constituent companies means that, at the lowest level, Abramovich appears to have converted all his loans into equity. Yet there is another company which holds a debt of over £700m over the subsidiaries. You could argue that a charge in their accounts which represented a commercial rate of interest on this debt could well see Chelsea fail FFP. Are UEFA going to investigate this?

Hw much is being taken out of the rags by the Glazers, which is going to service debts that are hidden in the Cayman Islands or Delaware?

 

[oakiecokie]

The structure of Chelsea's constituent companies means that, at the lowest level, Abramovich appears to have converted all his loans into equity. Yet there is another company which holds a debt of over £700m over the subsidiaries. You could argue that a charge in their accounts which represented a commercial rate of interest on this debt could well see Chelsea fail FFP. Are UEFA going to investigate this?

Hw much is being taken out of the rags by the Glazers, which is going to service debts that are hidden in the Cayman Islands or Delaware?

Unfortunately with Gill on the top table within UEFA I doubt it will get a second glance.

 

[waspish]

Re: City & FFP (continued)

The structure of Chelsea's constituent companies means that, at the lowest level, Abramovich appears to have converted all his loans into equity. Yet there is another company which holds a debt of over £700m over the subsidiaries. You could argue that a charge in their accounts which represented a commercial rate of interest on this debt could well see Chelsea fail FFP. Are UEFA going to investigate this?

Hw much is being taken out of the rags by the Glazers, which is going to service debts that are hidden in the Cayman Islands or Delaware?

All clubs in the Uefa competition should have there accounts looked at but we know this will never happen.. So next season if we are making a profit Uefa won't be looking into our accounts? If they say we still be looking Manchester City accounts we should tell them to do one unless they looks at all the other clubs in here Uefa competition..

 

[Bozzie]

The structure of Chelsea's constituent companies means that, at the lowest level, Abramovich appears to have converted all his loans into equity. Yet there is another company which holds a debt of over £700m over the subsidiaries. You could argue that a charge in their accounts which represented a commercial rate of interest on this debt could well see Chelsea fail FFP. Are UEFA going to investigate this?

Hw much is being taken out of the rags by the Glazers, which is going to service debts that are hidden in the Cayman Islands or Delaware?

Unfortunately with Gill on the top table within UEFA I doubt it will get a second glance.

It's amazing isn't it how everyone expects our accounts to be transparent and the finer details made available for scrutiny by any media hack and self appointed football finance expert. At the same time other clubs are allowed to register their businesses offshore, amass millions of pounds worth of debt, obtain mind boggling transfer fees for bang average players and have enough players out on loan to form their own league.

 

[jonmcity]

Fundamental purpose of FFP is for Clubs to break even. Now that we are making profits what's the fundamental purpose?

 

[lancs blue]

Another example is CFG and MCFC’s accounts both saying former midfielder Javi Garcia was sold last summer to Shakhtar Donetsk in Ukraine, whereas in fact he was sold to Zenit St Petersburg in Russia — notwithstanding a strange move that has remained hitherto secret.

<a class="postlink" href="http://www.mailonsunday.co.uk/sport/football/article-2904891/After-Frank-Lampard-debacle-just-mistakes-Manchester-City-UEFA-probe-accuracy-club-accounts.html" onclick="window.open(this.href);return false;">http://www.mailonsunday.co.uk/sport/foo ... ounts.html</a>

Does nobody proof read the accounts before they're published? Fucking basic mistake, Shakhtar are not even in the same country (yet). As with the Lampard press release fiasco, there's no need to be handing these knobheads ammunition to hit us with.

 

[BlueDejong]

@MOgdenTelegraph: Manchester City ready to improve £12m-a-year Nike deal -- via @Telegraph <a class="postlink" href="http://t.co/fIDcaFBbNE" onclick="window.open(this.href);return false;">http://t.co/fIDcaFBbNE</a>

 

[Centurions]

Another example is CFG and MCFC’s accounts both saying former midfielder Javi Garcia was sold last summer to Shakhtar Donetsk in Ukraine, whereas in fact he was sold to Zenit St Petersburg in Russia — notwithstanding a strange move that has remained hitherto secret.

<a class="postlink" href="http://www.mailonsunday.co.uk/sport/football/article-2904891/After-Frank-Lampard-debacle-just-mistakes-Manchester-City-UEFA-probe-accuracy-club-accounts.html" onclick="window.open(this.href);return false;">http://www.mailonsunday.co.uk/sport/foo ... ounts.html</a>

Does nobody proof read the accounts before they're published? Fucking basic mistake, Shakhtar are not even in the same country (yet). As with the Lampard press release fiasco, there's no need to be handing these knobheads ammunition to hit us with.

I've just checked the annual report that City released, <a class="postlink" href="http://content.mcfc.co.uk/~/media/Files/Annual%20Report/MCFC_AR.pdf" onclick="window.open(this.href);return false;">http://content.mcfc.co.uk/~/media/Files ... CFC_AR.pdf</a> , and can't see any mention of Zenit or Shakhtar. Where does this come from?

 

[petrusha]

FFS, It's Mark Ogden now.
http://www.telegraph.co.uk/sport/fo...r-City-finances-under-scrutiny-from-Uefa.html

Manchester City's finances are facing renewed Uefa scrutiny after it emerged that the complex structure of its City Football Group parent company is being investigated.

The Premier League champions, who were fined £16million and forced to play with a reduced Champions League squad by Uefa last year for breaking Financial Fair Play regulations, have endured accusations of duplicity in recent days over the contractual situation of Frank Lampard, who will spend the rest of the season at the Etihad Stadium after initially appearing only to be on loan from New York City FC until the end of December.

After proclaiming Lampard’s arrival last August as a loan, the club has now confirmed that the 36-year-old actually signed a year-long City contract, despite fans in New York and Manchester being led to believe that the midfielder had signed for the newly-formed MLS franchise, which is also controlled by CFG.

While the Premier League and City claim that no rules were broken in relation to Lampard, Uefa’s probe into the finances of CFG could lead to further FFP-related sanctions if evidence can be found to prove that the formation of subsidiary companies allowed the club to under-report losses in their 2013-14 accounts.

Two subsidiary companies – City Football Marketing Ltd and City Football Services Ltd – incurred costs, including wages, of £36.7million in the year to the end of May 2014, posting combined losses of £25.9million in that period.

A City spokesperson said: "The examination of the Club's structure and subsidiary companies is a scheduled and routine part of the UEFA monitoring process."

City, who believe themselves to be on course to meet Uefa’s FFP target this financial year having halved losses to £23million, increased their transfer spending on Sunday by agreeing a deal worth up to £28million for Swansea forward Wilfried Bony.

The arrival of Bony takes City’s spending during the winter and summer windows to £83million, with the full fee for Porto defender Eliaquim Mangala now being confirmed as £42million, rather than the £32m reported by the club at the time of his arrival.

Just under a year ago, I wrote a post about cost sharing arrangements, which are a fairly common mechanism for global holding companies that have subsidiaries in a number of different countries and incur expenses on behalf of the different members of the group. In essence, companies share the cost of items that will be separately exploited by each of the participants.

As Prestwich Blue has noted, £10,125,000 was recharged to MCFC for services provided by City Football Marketing Limited and City Football Services Limited. If those two companies had total costs of £36.7million, then this would suggest that just under £25.6 million was incurred on services provided to other group members.

Now, here, we should consider that the formation of NYCFC was announced in May 2013, so during the financial year 2013/4, NYCFC will have needed a considerable volume of marketing advice in preparation for a spring 2015 launch. Moreover, it also had no players so needed to start preparing to put a 'roster' together.

And we should consider that Melbourne Heart was purchased in January 2014, right in the middle of the 2013/4 financial year. That club was then rebranded in the summer, much of the work towards which will have been done in 2013/4, while scouting and other player recruitment services will also have been needed in connection with acquisitions that coincided with the rebrand.

As long as City have paid a price that reflects the proper cost of the services provided, there isn't a breach of FFP. Now, it's a subjective matter and there's often the scope for values ascribed by companies to be challenged (for example, by tax authorities). However, the above facts suggest that the £10 million charged to City may well be reasonable.

You'd therefore expect reports on the subject to mention this, in the interests of balance. That there's no mention would suggest either that the journalists in question have a preference for a story containing an innuendo that City are, in effect, cheats, or that they don't have the first understanding of the issues at hand. Or both, of course.

 

[lancs blue]

Another example is CFG and MCFC’s accounts both saying former midfielder Javi Garcia was sold last summer to Shakhtar Donetsk in Ukraine, whereas in fact he was sold to Zenit St Petersburg in Russia — notwithstanding a strange move that has remained hitherto secret.

<a class="postlink" href="http://www.mailonsunday.co.uk/sport/football/article-2904891/After-Frank-Lampard-debacle-just-mistakes-Manchester-City-UEFA-probe-accuracy-club-accounts.html" onclick="window.open(this.href);return false;">http://www.mailonsunday.co.uk/sport/foo ... ounts.html</a>

Does nobody proof read the accounts before they're published? Fucking basic mistake, Shakhtar are not even in the same country (yet). As with the Lampard press release fiasco, there's no need to be handing these knobheads ammunition to hit us with.

I've just checked the annual report that City released, <a class="postlink" href="http://content.mcfc.co.uk/~/media/Files/Annual%20Report/MCFC_AR.pdf" onclick="window.open(this.href);return false;">http://content.mcfc.co.uk/~/media/Files ... CFC_AR.pdf</a> , and can't see any mention of Zenit or Shakhtar. Where does this come from?

Page 64:- 29 - Post Balance Sheet Events,
It's towards the end of my copy that I downloaded from the OS.