New Large Investment In Cfg From China

[The Toe]

http://www.espnfc.us/barclays-premi...percent-stake-in-city-football-group-for-400m


ETA: If there's one thing the Chinese know, it's NYC real estate, so maybe this is a good thing.

 

[northernburbs]

http://www.espnfc.us/barclays-premi...percent-stake-in-city-football-group-for-400m


ETA: If there's one thing the Chinese know, it's NYC real estate, so maybe this is a good thing.

Doing business with the most corrupt government in the world almost never works out in your favor.
Either the low price of oil is taking a toll or it is an attempt to get the Chinese to crack down on the bootlegging of merchandise.

 

[Capt.Tsubasa]

According to the Wall Street Journal the Chinese investment group consists of China Media Capital Holdings and, hold it... wait... drumroll... Citic Capital Holdings Ltd. How fitting.

 

[CP_Scouse]

How much is CFG woth if the Chinese invested only 13 percent?

 

[Capt.Tsubasa]

How much is CFG woth if the Chinese invested only 13 percent?

THREEE BAZILLIONS!!

 

[Ulrich]

A $400M investment/sale of the company sounds a whole lot like the amount of money that would be needed to be spent on a new stadium....

http://www.espnfc.us/barclays-premi...percent-stake-in-city-football-group-for-400m

I'm not thrilled about a minority stake holder being the biggest Chinese Media company, but this does allow CFG to build (if that's actually what they're doing it for) without liquefying any other holdings. I'm guessing they're just chambering the round for later..... hoping it's sooner.

 

[mgarbowski]

Does it help our back line?
Does it hurt our back line?
I believe the answer to both is no and so I largely don't care. Good luck to them, I guess.

 

[Ulrich]

Didn't see this thread before posting mine.... Mods, please delete the other.

A $400M investment/sale of the company sounds a whole lot like the amount of money that would be needed to be spent on a new stadium....

I'm not thrilled about a minority stake holder being the biggest Chinese Media company, but this does allow CFG to build (if that's actually what they're doing it for) without liquefying any other holdings. I'm guessing they're just chambering the round for later..... hoping it's sooner.

 

[sbrylski]

Didn't see this thread before posting mine.... Mods, please delete the other.

A $400M investment/sale of the company sounds a whole lot like the amount of money that would be needed to be spent on a new stadium....

I'm not thrilled about a minority stake holder being the biggest Chinese Media company, but this does allow CFG to build (if that's actually what they're doing it for) without liquefying any other holdings. I'm guessing they're just chambering the round for later..... hoping it's sooner.

More likely, that money goes directly into marketing or other development in China. The whole point of Chinese investment is to build the City name in China.

 

[Gotham Gator]

EDIT: This post makes less sense now that the thread title has been changed from "We Are About to Be Huge in China" - but I will leave it up anyway.

======

Sex Farm is up to number 5 in Japan.

 

[MagnusPax]

I would welcome investment but it remains to be seen if this is for nycfc's benefit. Until it does this is nice news for the club's main owner but not much else.

Prove me wrong CFG.

 

[Ulrich]

More likely, that money goes directly into marketing or other development in China. The whole point of Chinese investment is to build the City name in China.

I have to disagree with you on this. A company (CFG) doesn't sell a stock stake to a media company (Chinese State-affiliated Media Giant) just so they can turn around and pay the same company for marketing/media services. The new 13% owners now have a reason to do marketing on behalf (as a matter of company business) of CFG's football teams - just like CFG has a reason to do the books/legal junk/etc to keep the company/clubs running.

 

[FootyLovin]

The new 13% owners now have a reason to do marketing on behalf (as a matter of company business) of CFG's football teams - just like CFG has a reason to do the books/legal junk/etc to keep the company/clubs running.

I generally agree with you, but this I find perplexing.

CFG is a company with employees responsible for, among other things, accounting, legal, admin, etc. If they bought a 13% share in a media company, I would not expect them to then do the accounting, legal, admin, etc. for the media company just because. I would expect that if they were going to do that work they would share personnel costs or have some other barter for the effort. These would be friendly negotiations as they would be within an ownership group, but because they aren't 100% overlapping ownership, they wouldn't just do the work without compensation.

Maybe this opens the door for marketing work to be done at lower cost. But I don't think CMC just do the marketing now for free.

 

[Gotham Gator]

You don't get to do business in China unless you let the Chinese own part of that business. That's the way it works over there.

Here is a nice article that explains things pretty well.

http://www.dailymail.co.uk/sport/sp...ew-investors-bring-new-players-franchise.html

 

[Kjbert]

Would value the CFG portfolio at north of $3 Billion.

 

[SoupInNYC]

Did anyone read the full article?

"City have been in talks with CMG for more than six months and say the proceeds of the deal, which is yet to be ratified in some countries, will be used to "fund its China growth, further CFG international business expansion opportunities and further develop CFG infrastructure assets.""

• Fund its China growth - potential team in China
• Further CFG international business expansion opportunities - potential team in China
• Further develop CFG infrastructure assets - probably related to team in China - but could potentially read between the lines on this and think NYC stadium.

I have no idea if this is truly going to benefit NYCFC or not. I would hope it does, but I'm not going to lose my shit if it doesn't. CFG is a company that has many interests. Not every business decision they make is going to have NYCFC in mind.

 

[Gene]

You don't get to do business in China unless you let the Chinese own part of that business. That's the way it works over there

Perhaps that's the remedy to our stadium situation here in New York.......

 

[Fantazma]

hmm....like others mentioned this seems to be more of possibly having a team there in the near future or at most expand the "Ctiy" brand in China to raise its profile to the local population.

i seriously doubt this is related in any way to nycfc. maybe City wants the $$$ to prevent getting a FFP ban or something.

 

[Fabio]

A new City club in China ?

 

[BxLio91]

Like someone pointed out, we'll be the most popular MLS team in China. Hooray!!!!