City Football Group | Secure $650m loan facility for infrastructure projects (p 54)

domalino said:
How did it change things for you on a day to day match going basis?

Since I've posted that, Khaldoon has come out and specified the money is being invested in CFG growth, not Manchester City's squad or stadium.

Exactly like the CFC money that went into investing in China.

You're not going to see big visible changes at MCFC.
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He hasn't been specific although it looks like CFG are moving into India.

It would enable City to expand the North Stand without financial concern.

For me the most important thing is that it ends the argument that City are an adjunct of Abu Dhabi. It's a transaction that shows City are oeprating globally on an commercial basis.
 
Marvin said:
Announcement here:

https://www.silverlake.com/Images/Uploads/docs/Silverlake26111911085014950.pdf

What do you make of these quotes:

Silver Lake making a primary capital investment to further accelerate growth and fund technology and infrastructure development...The proceeds from the investment will be used by City Football Group to fund international business growth opportunities and develop further CFG technology and infrastructure assets

""We are excited to partner with the Board and CFG’s world-class management team to help drive the next phase of CFG’s growth in the fast-growing premium sports and entertainment content market.”

Also: No existing CFG shareholders are selling equity.

This is a capital injection then into Man City. That's my interpretation....so what do City do with the capital? Buy more overseas clubs, get a decent web-site, and expand the stadium? What after all are CFG's infrastructure assets? Could just as well relate to City's overseas clubs though like NYC.

Another point: Intellectually this ends the argument that ABu Dhabi controls Man City.

Not from the point that Sheikh Mansour's shareholding is diluted, but that if a state really is investing and controlling MCFC, then it does not need the funds from an overseas partner for growth. Clearly City have been and are operating on a commercial basis, not governmental basis. Expect this point to be lost on those with a vendetta, but I think a major underpinning of the argument that City are an adjunct of Abu Dhabi has just gone. A state doesn't look for financial help from commercial partners that dilute its holding. Although the investment does bring expertise.
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Very, very good point indeed.

Can someone @ this to the top hats on Twitter please?
 
Prestwich_Blue said:
Just got in from an excellent evening & had a chance to have a better look at this.

The first thing that springs out at me is that it massively overvalues us. According to the Markham Multivariate Model (which is a consistent and accurate way of valuing fooball clubs) we're worth about $2.75bn (£2.2bn) so they've overpaid for that 10% stake by $200m but I'm not complaining. They obviously feel there's considerable upside to the value of CFG.

The second is that it's a $500m cash injection to CFG but, as I've said before, I think that CFG, excluding City, is eating up cash. They want to build a stadium in New York and this is probably a way of raising funds to do that without Abu Dhabi having to put money in.

The third thing is that our market capitalisation is much higher than united's. It's harder to value a privately-owned company than a publicly-quoted one so a share sale like this opens a window to do that. Their share price has them at somewhere around £2.25bn whereas ours has us at £3.85bn after this deal. According to the Markham model though, we're at £2.2bn compared to their £2.67bn.

Finally, by retaining 75% of the CFG shares, ADUG is still in complete control as 75% is the minimum shareholding required to be able to force through significant changes via a special resolution. They can't be outvoted on an ordinary resolution as long as they have 50%+1 but need the additional 25% for special resolutions. I'd guess that we won't be seeing any more share sales like this on that basis, at least not for a while and only if one of the two minority shareholders sells their stake.
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If your calcs are correct is there anything in the rules that prevents cash injection from an investment group by this apparent over valuation?
Not saying it happened but is it akin to our owner paying a sponsor to increase their sponsorship income to City?
 
spiny said:
This. No accident that the UEFA head honcho at the Etihad coincided with the announcement....
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Exclusive: Ceferin is guest at the Etihad in latest thawing of relationship between Man City and UEFA

GettyImages-692966040-e1574790446109-1024x683.jpg

By Matt Slater Nov 26, 2019

UEFA president Aleksander Ceferin is the surprise guest of honour at Manchester City’s Champions League game against Shakhtar Donetsk on Tuesday.

The Slovenian, who has run European football since 2016, was given a tour of the City Football Academy before the game and will sit alongside City’s chief executive Khaldoon Al Mubarak during the match.

Ceferin’s first visit to the Etihad Stadium will be viewed as a sign that peace is breaking out between governing body and club, who have been at loggerheads for years. City fans routinely boo the Champions League anthem before games.

This dates back to 2012, when former City striker Mario Balotelli was racially abused by Porto fans during a Europa League game. UEFA fined the Portuguese side £18,000, a sanction City and their fans felt was far too lenient; a feeling compounded soon after when City were fined £27,000 for returning to the pitch late after half-time in a game against Sporting...


https://theathletic.com/1412292/201...ng-of-relationship-between-man-city-and-uefa/
 
So if City need a capital injection to fund international growth then we are not run by Abu Dhabi otherwise we'd just tap state funds
 
UEFA may have just wanted a heads-up as to what is going on.

I would like to think that the US firm would not invest $500 into Man City unless they knew that City were not about to be excluded from the Champions League Group.

There's a lot of material to go through. The most significant thing I have seen this morning are the comments from Khaldoon regarding Pep. he was a bit circumspect but sounded like Pep may extend his deal?
 
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