Etihad Campus, Stadium and Collar Site Development Thread

[Marvin]

i would be very interested to know how city stands to benefit from this e.g. do we have a stake with the Coop, or was our benefit just the Silver Lake investment at the start.

Petrsuha commented on this many months ago. Here is what he said...

I had a stab at answering this before. In 2018, London's O2 Arena was reportedly making a profit of GBP 150 million. You might expect one on the Etihad Campus to make a bit less, but it should still be a lucrative venture. However, the bottom line is that a poster - @jrb I think - went to the roadshow and was told that it's being paid for by Oak View and they'll therefore presumably keep the revenues. It's possible that some revenue will find its way to City but it won't be game-changing sums. The big value of it to MCFC is that it makes the rest of the spare land on the Campus much more attractive for development and you could possibly be talking then about it generating transformative amounts of cash.

Below is part of an analysis I wrote back on page 331 of this thread around 4 months ago:

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City (or rather the MCFC/MCC joint-venture company) will be supplying the land on which the facility will be built and will be responsible for maintaining the entire surrounding area, as well as operating (or overseeing the operation of) other facilities on the Campus, including those yet to be built. There may also be scope for MCFC/ADUG to provide some assistance in procuring events for an arena, too; OVG don't especially need assistance, but I doubt they'd be likely to turn it down.​

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Bit of a hostage to fortune to speculate on exactly how it will work given the limited information we have so far, so I won't try in any detail. However, I'll make the following general points: (1) there'll be contractual undertakings with respect to the above and some money will flow to MCFC for the performance of the above obligations; (2) the amount is unlikely to be game-changing in terms of the club's income, but it's not fanciful to suggest that it could cover the annual salary of an established member of the senior squad - in other words, well worth having; and (3) it should be possible to structure matters in such a way that's acceptable to OVG while any income of MCFC counts for FFP purposes under the current rules.​

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The big deal about the OVG plans, though, is that if they go ahead, it will unlock the development of the rest of the site. Once you have a world-class anchor, and OVG genuinely is, then other leisure operators of ancillary facilities are much more likely to commit to the collar site as a venue as well. Again, much depends on how they work it and we're in the realms of absolute conjecture here (so please note the following choice of words), but it's possible that the revenue for MCFC could be rather significant.​

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[Norman kneejerk]

Petrsuha commented on this many months ago. Here is what he said...

Great thanks Marvin. Exc stuff from Petrsuha as per.

 

[bluesmith]

Petrsuha commented on this many months ago. Here is what he said...

I think that predates City becoming equal joint venture partners with Oak View.

Would be interested in @petrusha updated take on it.

 

[Keep the Faith]

I thought CFG had bought a 50% stake

 

[Deleted member 77198]

Petrsuha commented on this many months ago. Here is what he said...

Disappointing to hear it’s City who will be responsible for maintaining the entire surrounding area, they’re not doing a good job of that around the stadium as it currently stands (it looks bloody run down!) so to add further responsibility seems like it’ll be increasing an area we already can’t keep up with.

 

[jrb]

I thought CFG had bought a 50% stake

CFG have invested in the arena. No £ or % has been disclosed.

As an equal partner(see the PNW article below), anyone would assume it's 50% and £175mill.(that amount of money could fund a North Stand redevelopment)

The global football organisation that counts Manchester City FC among its assets has become an equal partner in the arena venture with US developer Oak View Group.

City Football Group, in which City owner and Emirati politician Mansour bin Zayed Al Nahyan has a controlling stake, has become the latest firm to invest in the 23,500-capacity arena, after popstar Harry Styles took a minority stake last year.

The parties would not disclose the value of CFG’s investment but confirmed that it was now an equal partner in the £350m project with OVG.

Tim Leiweke, co-founder and CEO of OVG, said: "We are thrilled that CFG has chosen to invest in Co-op Live, and we can't think of a better partner for this project.

City Football Group becomes partner in £350m Co-op Live - Place North West

The global football organisation that counts Manchester City FC among its assets has become an equal partner in the arena venture with US developer Oak View Group.

www.placenorthwest.co.uk

 

[EricBrooksGhost]

Going to look into that. Hence why I won't be using the drone straightaway. I'll probably go on a Drone course and do everything legit.

I know it's no longer the case where you can just fly a Drone anywhere you want to without permission. There was a clamp down on people flying Drones, with Drones being confiscated by the Police, etc.

There used to be loads of city centre Drone Videos on Youtube. They've all but dried up, bar the odd one. Most city centre Drone Videos on Youtube are old Drone Videos. You can tell that by Worsley's towers that are completed or still under construction.

Everyone needs a licence now buts it's an easy online test.
The sub 250g rule that used to be a licence cut off is still a rule that allows you to fly over people

Where you can fly drones | UK Civil Aviation Authority

Find out about height limits and distances from people, buildings, crowds and vehicles. Restrictions on flying drones and model aircraft near airports.

register-drones.caa.co.uk

 

[jrb]

Everyone needs a licence now buts it's an easy online test.
The sub 250g rule that used to be a licence cut off is still a rule that allows you to fly over people

Where you can fly drones | UK Civil Aviation Authority

Find out about height limits and distances from people, buildings, crowds and vehicles. Restrictions on flying drones and model aircraft near airports.

register-drones.caa.co.uk

Thanks Eric.

 

[petrusha]

I think that predates City becoming equal joint venture partners with Oak View.

Would be interested in @petrusha updated take on it.

It did predate our becoming partners with Oak View. If the facility is going to be operated as a joint venture with CFG as one of the parties, then presumably we and Oak View will both be shareholders in the operating company and any profit that's not reinvested in the business will be distributed as dividends to City and Oak View.

If the link supplied above by @jrb is correct and we're an equal partner, then that suggests we'll be investing significantly in the project. However, there seem to be other investors as well (the report mentions Harry Styles), so Oak View and CFG may have a share in the operating company of less than 50% (let's take a complete flyer and speculate that it could be 40% to 45% each). It's also worth noting that the investment needn't necessarily take the form of cash. For example, we could offer a commitment to lease out the relevant land at an advantageous rent (of course, we'd have to finesse that with the Council, who are a minority shareholder of the company owning the land).

We'd then take a corresponding proportion of the profit, presumably by way of dividends. This could entitle us to a significant proportion of a nine-figure sum in a best-case scenario where, in the post-Covid world, such venues return to the profitability levels they enjoyed before the pandemic. But bear in mind that even investors with very deep pockets would tend to finance such venture through a significant degree of borrowing, so it might take a while before that's fully repaid - which will affect the bottom line.

The final paragraph of my previous analysis still holds good, assuming we emerge into some kind of relatively normal post-Covid world, so I'll repeat it here:

The big deal about the ... plans, though, is that if they go ahead, it will unlock the development of the rest of the site. Once you have a world-class anchor, and OVG genuinely is, then other leisure operators of ancillary facilities are much more likely to commit to the collar site as a venue as well. Again, much depends on how they work it and we're in the realms of absolute conjecture here (so please note the following choice of words), but it's possible that the revenue for MCFC could be rather significant.

 

[cptaidan88]

Rugby League submitted plans to build a education facility on Grey Mare Lane

Link here

Not strictly Etihad Campus, but in sight of it.