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

[asahartford1]

There's a difference between a loan and equity, which involves buying shares. Sheikh Mansour could lend us a billion pounds and that's OK as it's not classed as income. When we spend that money however, we can only do that within FFP rules. When owners have to make up a loss for FFP purposes, they're only allowed to put in (I think) €30m over any 3-year period. So he could lend us that billion, we could make a €35m aggregate loss over 3 years (as all clubs are allowed to lose €5m) and he could cover €30m of that without problems.

If we were building a new stand, that wouldn't fall under FFP restrictions as it's a capital expenditure not a revenue & expenditure cost. So he could fund all of that without any issues.

Thanks.

So in your opinion why has a loan been arranged and what is it for.

Will not hold you to your answer.

 

[aguero93:20]

Not sure why the club would need to take out a loan?

Cash flow. Don't think that's anything to worry about. Probably just the Sheikh wanting 6 degrees of separation for show for his investment, ie we don't go legging it to him every time we need cash.

 

[aguero93:20]

I'm sure Sheikh Mansour has had previous dealings with Barclays before.

Perhaps we could see him buying shares in the bank again, and writing off the loan at their end...?

Would that work and bi-pass FFP to make a big signing ?

No.

 

[aguero93:20]

Maybe it's all part of Mansour wanting the club to completely manage its own finances at this point.

This is my read on it.

It won't have anything to do with getting round FFP.

Yep, we don't need to get round it, we're in the top 5 richest clubs in the world in our own right.

 

[aguero93:20]

A personal loan is still a loan.

I thought an owner could only invest so much cash per annum, not enough to fund a stand.
No expert so am willing to learn.

Infrastructure costs (ie stadium redevelopment) and youth investments don't count under FFPR.

 

[aguero93:20]

Thing is we made £1m profit last year, with this loan if it's big enough the intrest could be enough to put us in the red.

We included 13 months of wages and 12 months of income in last year's accounts as we moved our year end date, profit was probably actually around £20m. Dry your knickers ;)

 

[asahartford1]

Infrastructure costs (ie stadium redevelopment) and youth investments don't count under FFPR.

Will the size of the loan be revealed ?

 

[aguero93:20]

Thanks.

So in your opinion why has a loan been arranged and what is it for.

Will not hold you to your answer.

Read the answers above. For Mansour to show City as a successful investment we can't keep going cap in hand to him every time our cash flow is low, this is probably a short term loan to put a down payment on the two incoming players and to pay out end of year bonuses.

 

[aguero93:20]

Will the size of the loan be revealed ?

It'll be in either the 17/18 or 18/19 year end accounts, probably the 17/18 accounts.

 

[ChicagoBlue]

Etihad Airways are in dire financial straits, and are even looking into a partnership of sorts with Emirates.

Anyone concerned that the rather large commercial investment they have in City will dry up?

£3.5B in 2 years is not an insignificant loss, nor does them working with Boeing and Airbus to delay and/or cancel billions in aircraft orders bode well for future growth.

They are in SEVERE retrenchment mode. One wonders if we are going to need a rather large new commercial sponsorship in the near future... one that is not directly tied to Abu Dhabi would be preferable, esp. from a FFP perspective.