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

Prestwich_Blue said:
You keep making the point about private equity wanting a profit and that's not wrong. Some of Silver Lake's previous & current investments have done very well so it's clear that they're quite good at this.

But the usual worries about Private Equity - leveraged debt, aggressive cost cutting, asset stripping, etc - don't really apply here.This isn't the same as Elliott Management taking control at AC Milan. There's an obvious upside at Milan, as they're not in the CL and their revenue stream has stagnated for years. If Elliott can turn that situtation round, they'll probably make a return and get out. But their involvment in Milan was via funding the original Chinese investment by Li Yonghong so when he couldn't meet his financial commitments, they became the owner by default whereas Silver Lake have made a conscious decision to invest.

It's also not a Glazer-like leveraged buyout; SL are very much a junior partner as it's a 10% stake so they've no control bar a sole director on the board. Khaldoon can do anything he wants. Second, there's already a number of connections including Oak View & Fanatics, plus a couple of names that I think have been commercial partners in the past. I suspect there's been a connection for a while and this investment merely formalised it. Maybe some of the private equity they're managing comes from the UAE. We know that the company controlled by Khaldoon, Mubadala, has a tech fund in the USA and this year announced one to be based in London. We also know that the UAE are big investors in SoftBank so there's obviosu synergies. The club has already dipped its toes into the tech investing area by inviting a number of smaller tech start-ups to pitch their ideas with about 8 being actively worked on currently.

You talked in one of your posts about Sheikh Mansour releasing equity, which seems nonsense to me. He's worth tens of billions of pounds, whereas you're comparing him to some old couple living in a house where the mortgage has been paid off and who want to help their grandkids. This investment has already transformed the valuation of football companies, with United's share price (which is the most visible) shooting up 15% at a time when their share price had dipped below $16. But they are a true case of a short-sighted investment ploy where the Glazers saw a huge upside and were prepared to put them in hock and are more interested in taking money out than putting it in.

Garry Cook said, 10 years ago, that football clubs would be competing with the like of Disney and other entertainment companies in the future. We don't really know what Silver Lake's plan ios at the moment but I really don't see this investment as a risk at this moment.
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Well said that man.
 
OB1 said:
Of course you don't normally hire an arena for a theatre gig but that's my whole point: could you do something innovative? Whether it would be worth it depends on what sort of utilisation you expect to achieve in respect of full capacity events.

Didn't know Live Nation now own the Apollo...
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Or open up a new Belle Vue type right on our doorstep. ;)
 
Scoobz1 said:
No KTG I am not but I worked in Finance for over 25+ years (which makes me worse than a rag at least to some ) as a director for a company (which never had a single taxpayer dollar) with nearly $1.5 trillion dollars under management so I do have some understanding of the topic in question and hence views on the subject
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East, tiger, you're bristling way more than you need to be. If you've been reading this forum for awhile it shouldn't come as a shock when someone swears at you. Me, I was going off your first post which had a whiff of 'Twitter journo' about it and there's no doubt a handful of those cock sockets either peruse or post here from time to time. But fair enough you've said you're not a journo, but you're also not the only one with financial expertise around here. So obviously, given the relentless hammering our club takes, when this news arrived it was like 'oh, some good news for the club finally...' Coffee and cookie time, sit down read all about it. Then in sweeps Doomsayer Scoobz with what came across like 'this is the worst possible news imaginable, you should be very worried...' I researched it; you made some legitimate points, however the negative aspect of these points don't appear to impact us. If your post had read 'yeah, good news for the club, but it's a good job 'x' isn't set up like 'y' otherwise it would signify 'z' but it doesn't so everything's good...' then job's done, it's positive but you've also flagged up a niggle for further information. Instead, it was quintessential 'media negative propaganda', the sort we've been seeing as a club and a fan base for what seems like eons.

If you are a City fan then your bullshit radar, like mine, is either turned up to 11 or it's running round the clock; forgive me, can't help it. All the pessimistic press was supposed to stop after we won something. We won something; it got worse. We're like Baron Frankenstein locked in his castle with the flaming torch-toting mob baying outside the gate. But we didn't create this wondrous, beautiful City monster. The pl did back in 1992, the cartel, uefa, form an orderly effing queue, etc; if they're looking to lay blame they need only to look in a mirror.

Went off on one at the end there sorry. Summary: the financial consensus is for good news. Done.
 
blueinsa said:
Get some meat on those bones mate ;-)
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If we just take a look on the sport / entertainment side of this deal we're now teaming up with US giants like: Endavor, C3 Presents, Fanatics, TPG Capital, Live Nation, Ticketmaster, TEG, Agua Caliente, Sands, Delaware North, Reinsdorf Family, The Madison Square Garden Company, Liberty Media, Mets, Islanders and we already have an relationship with the Steinbrenner Family, the combined power / welth of these giants are absolutely scary, and thats just the entertainment side of the deal.
 
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