Prestwich_Blue
Well-Known Member
Been glorious in Pittsburgh. Blue sky, very mild.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
City Football Group | Secure $650m loan facility for infrastructure projects (p 54)
- Thread starter MCFC1993
- Start date
Prestwich_Blue
Well-Known Member
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.
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.
Franknorgrovesnephew
Well-Known Member
- Joined
- 5 Nov 2016
- Messages
- 4,797
Ruining football again lol
Franknorgrovesnephew
Well-Known Member
- Joined
- 5 Nov 2016
- Messages
- 4,797
Alan Green needs to realise if the sheik did ever sell it would take a very rich fucker to buy usBut but but, its all fake. Alan Green still worrying about what happens when the bored sheik leaves his plaything behind.
And to think that when Soriano put this idea to the Barca board, they turned their noses up at it.
Next stop, world domination. What tricks have UEFA got left to stop us now?
Suck that, motherfuckers!
With comments from khaldoon
We might be valued at billions but wont stop the price of season tickets & match day tickets going up again .World domination has its price
jimharri
Moderator
I'd imagine there's an ocean of boiling piss on Murkyside over this. They'll be scouring the internet for any dirt on Silver Lake.
oakiecokie
Well-Known Member
Lovely jubbly.I'd imagine there's an ocean of boiling piss on Murkyside over this. They'll be scouring the internet for any dirt on Silver Lake.
EL APACHE TEVEZ
Well-Known Member
- Joined
- 1 Sep 2008
- Messages
- 22,122
Hahahaha brilliant let the hysterics begin,I love being a city fan,I do.