what will city do when the arabs call in the "debt"?

[Brucie Bonus]

You don't know why they bought City do you (and you haven't been paying attention)?

 

[yatesy94]

They'll eventually get their money back and its just a bit of fun for our owners to buy a virtually unknown football club outside of europe and make us MASSIVE.

 

[Ghost in my house]

serious question, bluemooners, just as abramovic did at chelsea, when he turned around last year and announced the £500m he'd spent was actually a loan.(cheeky fucker, but hey its his money)

they (chelsea) thought it was money that was "theirs" because the owner was spending the money, but these billionaires arent stupid are they...

there is no way that the arabs will spend £500m on players, just for fun...they'll want it back eventually, somehow, and with city's revenue at £80m now and little profit, how long will it take to get back what they spend???

this is a serious question.

yeah i'm a "rag" and our financial situation will blow up sooner or later...the gimps cant service the debt now, and when fergie leaves i fear it'll be bad times at united (laugh all you like).

is there that much money to actually be made in football for a club like city? the scousers revenue is still £110m below uniteds, and they've had champions league money etc.

so what does the future hold for you lads?

Fair question, pal (wrong place to ask it if you were after serious, structured answers!).
What would happen if the owners wanted their investment back??? They would have to call in receivers to raise as much capital as possible then wind up the club and place it in administation. However, I firmly believe that the club will be run correctly. Most blues are getting excited about the prospect of signing some big players.....my excitement comes from hearing the owners talk about sustainability.

Let's look at their investment......
Approximations would suggest
£200m to purchase
£110m on players to date
£70m wage bill pa
If we hypothetically look at a 5yr period before they drop a bombshell of wanting their cash back, I would guess that £800m would've been spent. Based on utd raising around £250m pa turnover for the past 3 years - I will estimate that City will manage £120m pa (optimistic, I know although last year we managed £82m). This leaves us with a £200m shortfall (still £400m less that utd!!).

How would we service that in the worse case scenario? Who the f*** knows!!!!!!
Can City make enough money to cover this??? Possibly not when you factor interest payments into it.
I'm sure Garry Cook will be keeping a very close eye on how utd service their debt over the coming years....just in case.

I think (and hope) that you are a bit naive to compare ADUG with Abramovic.

You've probably noticed that I've written a lot without giving you any answers, but that is because only time will tell, and I wish that someone would ask Cook such a question at the fan's forum rather that the mundane crap about new kit, Berti or squad targets.

Welcome, by the way.

 

[anddickov]

who cares, i no who id,e support even in the north west counties league where those sad ,crying "WEVE BEEN BOUGHT BY YANKS AND THERE PUTTING MY TICKET UP BOO WHOO "FC UNITED OF MANCHESTER tossers play I and all great fans of gods own club will forever be "CITY TILL I DIE"

 

[ell]

Arabs dont believe in loaning money

 

[mammutly]

Financially speaking, City are a drop in the ocean for our owners so things would have to get mighty bad for them to pull out due to money constraints (something like oil running out could do it).

Additionally, they are not loaning any money to the club so there is nothing for them to call in. If they did get bored (which I suppose is possible) they would look to sell to someone else with similar financial clout.

So, all in all, the future is bright, the future is Blue ;-)

I agree with this (good mod. lol)

City are not an investment on which ADUG are seeking a financial return.

Winning the Champions League in 2011 will not make them any richer.

It will, however, make a lot of real fotball fans (i.e us) very happy and enhance the Abu Dhabi image in the process.

Debts? that's a rag problem

 

[scousemanc]

I think its a reasonable question with possibly a very simple answer. The question assumes the money ADUG are putting in to City is debt rather than share capital. If it's share capital then the question of repayment doesn't arise.

Does anyone know which it is?

Having said that, the situation is a million miles from the one at United where the ONERS HAVE ACTUALLY HAD TO BORROW MONEY TO BUY UNITED SECURED ON THE CLUB ITSELF. So, as the original poster acknowledges, there could be very dire consequences, if United do not continue to make enough money to pay the interest and capital on the debt. City do no owe money to any third parties, unlike United.

 

[supercity36]

end of the day, oil isnt running out for decades so were ok!

when these guys took over, they said the one thing they value more than money is success, and they will want success with city and get it. no doubt when we get glory hunters in a few years buying shirts thinking there real fans we will make a lot more revenue and they will see some return on their investment. remember they only paid 200m, the leader of the kgb paid 400m for chelski so less input but soon enough bigger output

 

[Danamy]

Our owners have just made 1.5 Billion PROFIT in 7 months through Barclays bank.........10% of that is our transfer kitty :-)
Enough said!!

 

[Corky]

The people who own City will wind themselves up if they can't pay themselves.