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

[oakiecokie]

It is primarily about releasing equity because if it was about synergies and opening doors their are many better potential partners than Silver lake, who are primarily a


If it wasn't primarily about releasing equity and it was about the above why would you choose a company which describes itself as this: "Silver Lake is the global leader in technology investing, with over $43 billion in combined assets under management and committed capital and a team of approximately 100 investment and operating professionals located around the world. There are so many other better potential candidates to achieve the above stated aims. Indeed, given who City's owners are I doubt very much they need the "expertise" of a company like Silver Lake to achieve the above stated aims.

I too hope that Mansour wouldn't sell them a controlling stake because being a "Private Equity company" (unlike a venture capitalist) they typically take up a 100% or have a controlling stake in the companies they invest in. Anyway the gist of it is our owners have been brilliant and very much let finance take a back seat up to now in terms of City's development. With money men coming on-board and our owners reducing their ownership stake their is less incentive for them to continue to invest in the future. Indeed, it is not unknown for smaller stakes to turn into bigger stakes over time (indeed this is what these companies typically do ). So once again I personally don't see any news which is really good from a MCFC's point of view in this. If the £500m stake was about to be invested in new players or ear-marked for such then I might think differently (-:

Ah I wondered when the old adage would come to the front "when HH gets fed up of City".
Unbelievable Jeff.

 

[BosnianBlue]

My company started out with an entrepreneur/founder, moved on to a private investor (two rich guys) and have been owned by equity owners two times in a row. We're just at the end of the road with the current owners, and it's ... interesting.

Both have been similar. Short term and cynical. They have no interest beyond maximizing profit when they exit.

I'm guessing that Silver Lake are brought on to help expand the business. They'll want to prove a model where they can grow quickly with high earnings in the new clubs/investments. If they can prove that this model works, they will be able to sell their "shares" with a really big profit, within five years.

EBITDA/earnings will be key. And with players being the easiest way to keep consts down, there is a risk that there won't be as many expensive signings the coming ~5 years.

I'm using my own limited experience as reference.

To be honest, you're using your hope mostly :D

There will be no financial success and profit from shares without success on the pitch. Look at Rag, with all their advantage, the lack of success i starting to hit them financially.

We've all could have seen so far how good businessmen the guys who own City are. In 10 years they've managed to turn 200 mil. initial investment into 4 billion worth company. Now if we add all other money pumped for transfer, the acquisition of other clubs, it's still 250-300% gain. They are fucking good and whatever they plan with this, will make them, City and the whole company profit in all kind of ways.

 

[Scoobz1]

Ah I wondered when the old adage would come to the front "when HH gets fed up of City".
Unbelievable Jeff.[/QUOTE

Where did I say that ? God the only one coming out with old adages is you -
"He`s been wumming since last night mate"
"He sounds very Raggish and bitter."
"You sound like a gutted Rag."
Ah .. "HH gets fed up with City"

Funny how anyone that doesn't agree with suddenly turns into a rag or you feel the need to use swear word in your posts. Perhaps you really do need to get out of the other side of bed tomorrow or deploy a little more imagination when you post your responses

 

[SilverFox2]

My company started out with an entrepreneur/founder, moved on to a private investor (two rich guys) and have been owned by equity owners two times in a row. We're just at the end of the road with the current owners, and it's ... interesting.

Both have been similar. Short term and cynical. They have no interest beyond maximizing profit when they exit.

I'm guessing that Silver Lake are brought on to help expand the business. They'll want to prove a model where they can grow quickly with high earnings in the new clubs/investments. If they can prove that this model works, they will be able to sell their "shares" with a really big profit, within five years.

EBITDA/earnings will be key. And with players being the easiest way to keep consts down, there is a risk that there won't be as many expensive signings the coming ~5 years.

I'm using my own limited experience as reference.

Probably when they do sell shares they will be restricted as to who they can sell to.

 

[Franknorgrovesnephew]

Some people moaning about this deal just be happy to see what it's doing to the Dippers and Rags priceless

 

[sky_blue]

I understand it - but it is neither here nor there re this argument - they are primarily profit driven - and in this instance they are acting more like a venture capitalist - and let's hope it stays that way - unless you would prefer them to own a 100% or a controlling stake as in the case of most Private Equity deals. All I said in essence is that this is not a good thing / news and it isn't. I would prefer that are brilliant owners continue to own as much as us as possible and not dilute their ownership any further. That way they have the maximum incentive to invest further.

Why is it not a good thing in essence? Assuming that this is more of an informed opinion than a gut feeling, can you provide some data to suggest it (not counting anecdotal or circumstantial evidence)?

 

[kaz7]

This isn't good news - 10 % stake going to venture capitalists - all they care about is a return ! The Chinese deal made sense as there was a media company involved and the chance to increase and substantially grow the franchise using their expertise. There doesn't appear to be anything strategic about this alliance. Let's hope this doesn't become a growing trend or x years down the line it could be Glazer's like with football taking very much a back seat ....

Ah bless

 

[kaz7]

I love it when they out themselves

 

[kaz7]

I know it's good for the club but cheering about financial stuff seems a bit weird

11-12 yrs ago we nearly ceased to exist,if you can't cheer where we are now then that's a bit sad,a well run profitable club is why we have pep and great players after a long journey with bobby and mp,other clubs exsist on debt,we don't

 

[kaz7]

Who the fuck was Powell ?

A rag