New Large Investment In Cfg From China

[northernburbs]

Are you stupid? Why would the Chinese crack down on bootleg merchandise? Bootleg merchandise is a huge part of their economy. If they got rid of those, they'd be semi-fucked.

If they were really trying to stop bootlegging, they'd invest in a team like Barcelona (although whether they invest in anything or not, it won't make a difference... especially because this investment company is not state-owned).

No I'm not stupid. When I have some free time I will explain it so even you can understand what I meant.
And in China everything is run or owned by the government.

 

[whill4]

Seems like highway robbery for CFG. For that much they could have invested in a much bigger team/ownerhsip. AC Milan are selling, I believe, 50% of their club for 500 million.

Somehow I doubt this helps us directly at all. Still kind of cool to see the City blanket continue to spread across the globe though.

 

[Kjbert]

I don't think the consortium had any interest in actually managing an operation. They wanted a strategic partnership with an organization that could market and grow the game in China. Similar blueprint to what CFG is doing in Australia and here.

 

[gbservis]

Fast forward to 2020: Beijing FC are please announce the signings of Frank Lampard, Andre Pirlo and Yaya Toure! Fans of Beijing FC do not worry that they are all 40+ years old their brilliant soccer minds will overcome all physical limitations!

 

[whill4]

I don't think the consortium had any interest in actually managing an operation. They wanted a strategic partnership with an organization that could market and grow the game in China. Similar blueprint to what CFG is doing in Australia and here.

Still. A team like AC Milan has a significantly larger fan base to market to than any of CFG's teams. And they already have a very strong presence all across Asia.

 

[Kjbert]

Still. A team like AC Milan has a significantly larger fan base to market to than any of CFG's teams. And they already have a very strong presence all across Asia.

I think you're looking at it backwards. It's not about buying a business that already exists. It's about CIT looking to mimic what CFG has done in England.

Look at the 13% stake as the consulting fee CIT is paying CFG to replicate the business model in Asia.

They don't care about Man City or NYCFC. It's a symbiotic relationship. CFG gets cash and preferred vendor status in China. CIT gets access to the brain trust.

 

[Falastur]

Still. A team like AC Milan has a significantly larger fan base to market to than any of CFG's teams. And they already have a very strong presence all across Asia.

Yes, but if they'd bought half of AC Milan, AC Milan wouldn't spend the money on developing Chinese football, it would spend it on itself. CFG on the other hand will put this money into investing in a Chinese Super League team and then bringing over top-quality academy coaches, analysis teams, marketing gurus etc in order to market and develop not just themselves but the whole of Chinese football. That's what the Chinese want out of this.

 

[whill4]

Seems like it would be far more productive if that was the case to just invest the 400 million into their own league then instead of giving it to someone else. You could do pretty much everything that CFG could offer and probably even more for that much $$$.

 

[Sabo]

Seems like it would be far more productive if that was the case to just invest the 400 million into their own league then instead of giving it to someone else. You could do pretty much everything that CFG could offer and probably even more for that much $$$.

There was recently an investment of $1.5 Billion dollars to buy the television rights to the league which previously were sold for $15-$50 Million -- the investment into the league was made in addition to the CFG deal.

 

[Kjbert]

Seems like it would be far more productive if that was the case to just invest the 400 million into their own league then instead of giving it to someone else. You could do pretty much everything that CFG could offer and probably even more for that much $$$.

throwing money at an issue doesn't necessarily solve it. They're paying CFG to come in and build the product for them.

CFG, smartly, asked for the money in the form of a direct investment and not in the form of a "fee" for service for obvious reason.

 

[SoupInNYC]

CFG, smartly, asked for the money in the form of a direct investment and not in the form of a "fee" for service for obvious reason.

Ummmm, what would the obvious reason be???

I would imagine if it was as simple as providing services, that CFG would much rather "earn" the money and pay taxes on it, rather than give away a decent chunk of the company, which is almost certain to go up in value over the years.

 

[Kjbert]

Ummmm, what would the obvious reason be???

I would imagine if it was as simple as providing services, that CFG would much rather "earn" the money and pay taxes on it, rather than give away a decent chunk of the company, which is almost certain to go up in value over the years.

Also difficult to do business with the Chinese.

CFG wants to do business in China. I believe this is the only way to do so.

 

[Gazza_55]

Seems like highway robbery for CFG. For that much they could have invested in a much bigger team/ownerhsip. AC Milan are selling, I believe, 50% of their club for 500 million.

Somehow I doubt this helps us directly at all. Still kind of cool to see the City blanket continue to spread across the globe though.

50% of AC Milan is barely worth $50 and their value is dropping yearly - CFG would be crazy to get involved with that Serie A club

 

[NickA]

Chinese firms love to buy NYC real estate, especially income generating properties. Maybe their stake is based on funding a stadium. They pay for the stadium, own a stake in CFG and get a royalty from stadium revenues.

 

[whill4]

50% of AC Milan is barely worth $50 and their value is dropping yearly - CFG would be crazy to get involved with that Serie A club

Hardly. AC Milan's value is still one of the highest in this sport. Their fan base is ginormous and they still make a ton from merchandise sales and sponsorships. Their problem is that they have an owner who just doesn't care anymore.

 

[Vinjay]

Hardly. AC Milan's value is still one of the highest in this sport. Their fan base is ginormous and they still make a ton from merchandise sales and sponsorships. Their problem is that they have an owner who just doesn't care anymore.

Not exactly the most grateful fans in the world though are they? I can't believe this hasn't been mentioned on this thread (far as I recall) but what's the better international investment? In China its the Premier League over Serie A by an absolute mile. Certainly in 2008 you could have made a case for AC Milan being a better investment than Manchester City...but now?

Don't think so. It appears the governments of Abu Dhabi and China share the same view.

 

[Kjbert]

AC Milan is a flash in the plan.

 

[NYdoesitEZ]

Wow, I'm not seeing that reported in English media, but this article in Italian says CFG is trying to by Beijing Guoan FC and rename it Beijing City FC.

https://translate.google.com/translate?sl=it&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http://www.tuttocalcioestero.it/2015/11/30/il-manchester-city-alla-conquista-della-cina-occhi-puntati-sul-beijing-guoan/120896&edit-text=&act=url

Beijing sucks...as a city i don't like it, only been there once...not used to it...like Hongkong or Shanghai much better

 

[NYdoesitEZ]

I might be a little sarcastic but I'm content with these deals because they increase our exposure. We're already among the league leaders in terms of exposure so being visible in the Chinese market is an advantage over any other team in our league.

Pirlo has many Chinese fans, last time our China analyst checked. he can sell tickets there if he goes

 

[sbrylski]

Beijing sucks...as a city i don't like it, only been there once...not used to it...like Hongkong or Shanghai much better

I spent a full summer in Beijing. Meh.

I then spent a month between Shenzhen and Hong Kong. Amazing cities.