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

[domalino]

There is a small but persistently deranged group within the Celtic support who seem to believe they are already a CFG club by stealth, just because we’ve helped them out in the past with loan players and scouting recommendations like Edouard

And because Celtic's CEO Peter Lawwell's son, Mark, is City Football Group's Scouting & Recruitment Manager.

New manager comes from Yokohama Marinos

 

[petrusha]

According to the Russian Football News feed on Twitter, there are reports that CFG are in talks to acquire a 20% stake in Spartak Moscow. It's claimed that CFG employees have been in Moscow conducting due diligence for the project.

Spartak has a great history but they play predominantly in red and have always struck me a bit as Russia's equivalent of Manchester United. They're historically the country's biggest club, but after winning 9 out of the first ten post-Soviet league titles, have gratifyingly won only another one in almost 20 years. They're nowhere near bad enough to be at risk of going down, but got twatted 7-1 by league leaders Zenit the other week.

RFN, a decent source, say they'll believe this one when they see it. I tend to agree, but if there are developments, I'll report them here.

 

[kun]

There have been persistent reports of the CFG wanting to invest in a Russian club. So could be true.

 

[MCFC1993]

Speculation that CMC have sold some shares to Silver Lake. There has definitely been some movement with the shares as per Companies House.

 

[halfcenturyup]

According to the Russian Football News feed on Twitter, there are reports that CFG are in talks to acquire a 20% stake in Spartak Moscow. It's claimed that CFG employees have been in Moscow conducting due diligence for the project.

Spartak has a great history but they play predominantly in red and have always struck me a bit as Russia's equivalent of Manchester United. They're historically the country's biggest club, but after winning 9 out of the first ten post-Soviet league titles, have gratifyingly won only another one in almost 20 years. They're nowhere near bad enough to be at risk of going down, but got twatted 7-1 by league leaders Zenit the other week.

RFN, a decent source, say they'll believe this one when they see it. I tend to agree, but if there are developments, I'll report them here.

Interesting and thanks for the info, but I thought we wouldn't be buying a club that would likely play in the UEFA competitions to avoid their conflict rules?

 

[petrusha]

Interesting and thanks for the info, but I thought we wouldn't be buying a club that would likely play in the UEFA competitions to avoid their conflict rules?

I assume, if there's any truth in it, that this is why the shareholding is touted as being 20%. The latest version of the UEFA Champions League Rules I've found are here: Article 5 Integrity of the competition / multi-club ownership • Regulations of the UEFA Champions League • Reader • UEFA Documents

They state that:

Article 5 Integrity of the competition / multi-club ownership​

5.01
To ensure the integrity of the UEFA club competitions (i.e. UEFA Champions League, UEFA Europa League and UEFA Europa Conference League), the following criteria apply:

1. No club participating in a UEFA club competition may, either directly or indirectly:
   1. hold or deal in the securities or shares of any other club participating in a UEFA club competition;
   2. be a member of any other club participating in a UEFA club competition;
   3. be involved in any capacity whatsoever in the management, administration and/or sporting performance of any other club participating in a UEFA club competition; or
   4. have any power whatsoever in the management, administration and/or sporting performance of any other club participating in a UEFA club competition.
2. No one may simultaneously be involved, either directly or indirectly, in any capacity whatsoever in the management, administration and/or sporting performance of more than one club participating in a UEFA club competition.
3. No individual or legal entity may have control or influence over more than one club participating in a UEFA club competition, such control or influence being defined in this context as:
   1. holding a majority of the shareholders’ voting rights;
   2. having the right to appoint or remove a majority of the members of the administrative, management or supervisory body of the club;
   3. being a shareholder and alone controlling a majority of the shareholders’ voting rights pursuant to an agreement entered into with other shareholders of the club; or
   4. being able to exercise by any means a decisive influence in the decision-making of the club.

5.02
If two or more clubs fail to meet the criteria aimed at ensuring the integrity of the competition, only one of them may be admitted to a UEFA club competition, in accordance with the following criteria (applicable in descending order):

1. the club which qualifies on sporting merit for the most prestigious UEFA club competition (i.e., in descending order: UEFA Champions League, UEFA Europa League or UEFA Europa Conference League);
2. the club which was ranked highest in the domestic championship giving access to the relevant UEFA club competition;
3. the club whose association is ranked highest in the access list (see Annex A).

5.03
Clubs that are not admitted are replaced in accordance with Paragraph 4.09.
5.04
This article is not applicable if any of the cases listed under Paragraph 5.01 happens between a club directly qualified to the UEFA Champions League group stage and one qualified for any stage of the UEFA Europa Conference League.

So my reading is that the kind of minority shareholding contemplated is OK as long as it doesn't contravene Paragraph 5.01(3). I assume we'd ensure that it wouldn't.

I'm slightly dubious as to the benefit of this type of arrangement with a Russian club. But should there be any truth in it, my guess is that, despite a tightening of the rules in Russia in the last few years in relation to foreign imports, we view it as a place where we can get the first option on talented South Americans and Eastern Europeans Spartak may sign. Spartak would no doubt get access to CFG commercial opportunities, plus analytics and scouting know-how.

 

[LongsightM13]

Interesting and thanks for the info, but I thought we wouldn't be buying a club that would likely play in the UEFA competitions to avoid their conflict rules?

Didn’t RB Leipzig play RB Salzburg three or four years ago?

 

[mccity]

Didn’t RB Leipzig play RB Salzburg three or four years ago?

UEFA contrived a way to suggest they were independently enough run for it not to be an issue. I say contrived in an obviously cynical way, and I assume that CFG teams would receive the same leniency.

Although in relation to the poster you quoted, a minority stake is less likely to kick up an issue.

 

[Xhavenjoe]

Didn’t RB Leipzig play RB Salzburg three or four years ago?

That story had wings.

 

[City Hobgoblin]

Spartak have given themselves that irritating “people’s club” badge .