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Let's All Laugh At... Lets all laugh at Man City

topper

Well-Known Member
Jan 27, 2008
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16,254
Not a financial expert by any stretch of the imagination, however the 10% stake doesn’t have to be worth the price a buyer is willing to pay for it. On paper, that 10% stake is worth 270 but if Sheik Mansoor wanted 500 and Silver Lake were willing to pay that amount due to a good future ROI, then they would be paying that price.

It isn’t a sound investment on paper either, were your stake would have to double in value just for you to break even, and grow even more to make a profit.

I hope someone with a little more financial expertise can explain how this deal would make sense to us.
Looks like smoke and mirrors, an application of the dark arts, sleight of hand -, whatever you want to call it - welcome to the world of corporate accountancy
 

yankspurs

Enic Out
Aug 22, 2013
41,941
71,359
US investment group Silver Lake have just pumped £390 million into City...
Club now valued at £4.9 billion!!!
It was not invested into Manchester City. It was invested into City Football Group. Will apparently be used to expand their investment portfolio into football clubs.
 

yankspurs

Enic Out
Aug 22, 2013
41,941
71,359
CFG own stakes in about 3 or 4 other clubs and are apparently looking for more.
Just to further the point that this wont effext Manchester City, a day or 2 after CFG received a cash infusion, they subsequently buy an Indian club.
 

spursfan77

Well-Known Member
Aug 13, 2005
46,680
104,957
Why are they buying all these other clubs?

I’m assuming it’s for creative accounting purposes. I can’t believe their owners retain a passion for the Indian premier league!
 

nailsy

SC Supporter
Jul 24, 2005
30,536
46,630
Why are they buying all these other clubs?

I’m assuming it’s for creative accounting purposes. I can’t believe their owners retain a passion for the Indian premier league!

It's a growth market. It's probably a good investment.
 

Hakkz

Svensk hetsporre
Jul 6, 2012
8,196
17,270
Why are they buying all these other clubs?

I’m assuming it’s for creative accounting purposes. I can’t believe their owners retain a passion for the Indian premier league!
They are trying to industrialize football. The City group and RB are the first with this and hopefully the last. It will make it easier for them commercially, they can sign prospects in different countries and then transfer them between clubs. Like Girona is getting a bunch of City youngsters on loan, Salzburg players to Leipzig.

They could of spent some of that money on Bury, saved them and used them as a loan club. Through a different ownership if required.

They seem to just want one club in each country. Probably so that they don't get a conflict of interest later on.
 

nailsy

SC Supporter
Jul 24, 2005
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I'm surprised that they aren't going for a central defender as it's the obvious weakness in their squad. It looks like Pep's stubbornness is kicking in again.
 

sebo_sek

Well-Known Member
Jun 2, 2005
6,023
5,168
Can somebody who is better at finances than me explain to me how a club which was valued in May 2019 of this year at $2.7 billion suddenly get an injection of 500 million for buying a 10% stake based on a company arbitrarily valuing them at $5 billion?


I'm uneducated on these sort of goings on but the cynic in me feels like it's dodgy that a company has just bought a 10% which has allowed them to inject the 500 when in reality the 10% was not worth that. Feels like yet again man city are making a mockery of FFP.
How are Chelsea, City, PSG debt free?
And what is operating income, seeing as we have the second largest in the top 20?
 

spursfan77

Well-Known Member
Aug 13, 2005
46,680
104,957

I'm surprised that they aren't going for a central defender as it's the obvious weakness in their squad. It looks like Pep's stubbornness is kicking in again.

Let’s see what happens if they are 5/6 points off Liverpool after the end of December. If Laporte is no closer to being back then I suspect they will have to go for someone. Kompany back perhaps?
 

Hakkz

Svensk hetsporre
Jul 6, 2012
8,196
17,270
Let’s see what happens if they are 5/6 points off Liverpool after the end of December. If Laporte is no closer to being back then I suspect they will have to go for someone. Kompany back perhaps?

They need a new Kompany type. A calming leader because as soon as their defense in under pressure they look like a mess.

And they will have to pay big money for that player.
 

nailsy

SC Supporter
Jul 24, 2005
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It makes me wonder if they're thinking of making a move for Toby or Jan at the end of the season. You can bet they've already spoken to their agents if they are.
 

Hakkz

Svensk hetsporre
Jul 6, 2012
8,196
17,270
It makes me wonder if they're thinking of making a move for Toby or Jan at the end of the season. You can bet they've already spoken to their agents if they are.

They should aim for much better with their resources. If they want to really compete, they should be taking players from other top clubs / stealing the targets from the other top clubs.
 

nailsy

SC Supporter
Jul 24, 2005
30,536
46,630
They should aim for much better with their resources. If they want to really compete, they should be taking players from other top clubs / stealing the targets from the other top clubs.

We are a top club. Or we were recently.
 

nailsy

SC Supporter
Jul 24, 2005
30,536
46,630
Lol yeah, but you know what I mean. They should try to weaken opposition while strengthening. It's not like they are poor.

I'm not sure how they could do that in the Premier League though? Liverpool wouldn't sell them anyone - except maybe Lovren :). United and Arsenal haven't got anyone they'd want. Chelsea might sell them Rudiger I suppose. If they want to hurt an English team then we're probably the best target.

Obviously there are big clubs outside the Premier League but they'd all ask for huge money for their players as well.
 
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