Ownership

[MrE]

There has been a lot said on this forum about "Sister Club", ownership etc.

I have spent a little time looking at the set up and it would appear that, in family tree terms, Manchester City is the Parent club and NYCFC a child. (I am ignoring the 80/20 split with the Yankees for the purpose of this)

http://en.wikipedia.org/wiki/City_Football_Group

You will see in the above link that Manchester City Acquired the team / Franchise.

BUT
http://en.wikipedia.org/wiki/List_of_MLS_franchise_owners

this lists Sheik Mansour of City Football Group as being the owner

AND

http://en.wikipedia.org/wiki/New_York_City_FC
This lists CFG as being the owner.

There is no doubt that the top of the tree in all cases is Mansour but it is the exact relationships between the clubs I am trying to determine here.
And if CFG was as wiki says
The City Football Group is an Anglo-Arabic holding company established to oversee the creation and administration of a network of linked clubs and other footballing operations under the aegis of Manchester City
What is the definition of administration (Player contracts ? Commercial Contracts etc etc)
Aegis means "protection of" which could define parent ? or does it simply mean in the image of ? (Brand / kits etc)

The purpose of this post, (and let us not get hung up on Lampard) is to determine who owns what from players contracts, sponsorship deals etc etc

 

[MrE]

http://www.telegraph.co.uk/finance/...C-have-plans-for-global-brand-domination.html

Still trying to get to the bottom of the group structure.... but found this is an interesting read.... ignore the headline, it is the content that matters.

This is saying CFG own both... MCFC are at the core but others are built from the spine

 

[NYCFC_Dan]

Wiki is administered by individuals. They basically have a moderator(s) for each wiki. Which is why you have two Wikis that say two different things. Also it's not the best source to cite when trying to prove a point as here in the states we're taught as students from very early on not to use Wiki as it's not a reliable source. they do however keep a source list in which they list where they obtain the information from in which case you can go there and cite and so on if it is accurate.
But if at the end of the day you're looking for who owns what... CFG own MCFC and NYCFC.
There was a lot of confusion in early stages as most Us based coverage referred to CFG as MCFC. It's all tempeh remotely knew so they just said MCFC even though it was CFG with the funding. But the NYCFC site clearly says CFG in one of the early articles and now as of late most in media report it as CFG.

 

[MrE]

Thanks NYCFC_Dan
Dan,
There just seems to be so many conflicting sources, but I always believed CFG to own both as you will have seen in my previous posts

But "administrative" what is that in terms of contract etc....
For instance, and this is for future (not to be confused with Lampard) who actually owns the contract... in the current situation it appears nether MCFC or NYCFC own the contract, so I summise CFG do, and if that is the case, what about the rest of the players from each club ?

 

[NYCFC_Dan]

MLS owns player contracts. They have final say.
Fox confirms... Sister club lol.

 

[MrE]

NYCFC_Dan

Just a point of "order" here.... Do the MLS OWN the contract or HOLD the contract.

For instance NYCFC or CFG negotiated the contract, and I assume will be held accountable to the contract from the players point of view (Whatever that contract says)

Or did the MLS negotiate the contract on behalf of the club with the clubs input / guarentee ?


Also no need to lol with sister club, I am not personally bothered, each club is entitled to stand alone at least financially. I am happy with multi identity tho

 

[NYCFC_Dan]

And not to say everything on wiki is false. Just open to interpretation as its from the moderators point of view or whatever source they obtained info from.
I believe that MLS has final say/approval.
Someone help me out with this. I know I read it from someone who posted it here

 

[MrE]

And not to say everything on wiki is false. Just open to interpretation as its from the moderators point of view or whatever source they obtained info from.
I believe that MLS has final say/approval.
Someone help me out with this. I know I read it from someone who posted it here

Help us out !!!!
I am only trying to establish FACT and will not speculate

 

[mgarbowski]

I would be surprised if MCFC corp were the direct parent of NYCFC Corp. But even if that is the case MCFC would not have complete freedom to manipulate NYC assets, employees, and contracts. First, you cannot ignore the minority owner. If MC, or CFG as ultimate owner start assigning NYCFC assets or employees to MC without fair compensation, then the Yankees have the right to force an accounting and to enforce just compensation. Second, even if you pretend 100% ownership with no minority parties, you cannot just shuffle assets around without a fair quid pro quo. The whole reason you maintain separate corporate entities is to isolate liabilities. If you start sharing assets, and if the management of one company meddles in the affairs of another, then anyone with a claim against one of the companies will argue that the separate corporate forms are a fiction. You don't want that.
Now companies try to get away with this sort of nonsense all the time, but they go to lengths to hide it.

 

[MrE]

I would be surprised if MCFC corp were the direct parent of NYCFC Corp. But even if that is the case MCFC would not have complete freedom to manipulate NYC assets, employees, and contracts. First, you cannot ignore the minority owner. If MC, or CFG as ultimate owner start assigning NYCTA assets or employees to MC without fair compensation, then the Yankees have the right to force an accounting and to enforce just compensation. Second, even if you pretend 100% ownership with no minority parties, you cannot just shuffle assets around without a fair quid pro quo. The whole reason you maintain separate corporate entities is to isolate liabilities. If you start sharing assets, and if the management of one company meddles in the affairs of another, then anyone with a claim against one of the companies will argue that the separate corporate forms are a fiction. You don't want that.
Now companies try to get away with this sort of nonsense all the time, but they go to lengths to hide it.

Thanks. That answer makes a lot of sense.
I was not trying to assume 100% ownership, just trying to put origonal text in laymans terms without clouds...You make a good explanation of the 80/20 as well

 

[413Blue]

*Lampard, and other DP's aside.
MLS owns all player contracts, as in, the player is under contract with MLS LLC, and assigned to a franchise, you will not see anything about NYCFC in a player like Ryan Meara's contract.
DP's may have some differences that we don't know about since as we all know, MLS is not exactly open about off-the-field stuff.

 

[Gazza_55]

*Lampard, and other DP's aside.
MLS owns all player contracts, as in, the player is under contract with MLS LLC, and assigned to a franchise, you will not see anything about NYCFC in a player like Ryan Meara's contract.
DP's may have some differences that we don't know about since as we all know, MLS is not exactly open about off-the-field stuff.

MLS LLC owns all the contracts including DP's. They'd lose Single Entity status right away if they were challenged in court and some contracts were outside the LLC

 

[MrE]

MLS LLC owns all the contracts including DP's. They'd lose Single Entity status right away if they were challenged in court and some contracts were outside the LLC

Sorry to be naive what is the LLC

 

[Paul]

Sorry to be naive what is the LLC

If you're asking what an LLC is, an LLC ("limited liability company") is a type of business entity designed to create a barrier to liability for the owners be it a person(s) or other entity(ies). It is similar to a corporation in that way except that corporations have shareholders.

 

[FredMertz]

Sorry to be naive what is the LLC

As a guy who likes to link to wikipedia pages, you should also be familiar with google.

http://lmgtfy.com/?q=LLC

 

[MrE]

As a guy who likes to link to wikipedia pages, you should also be familiar with google.

http://lmgtfy.com/?q=LLC

I know what a limited liability company is, never seen the abbreviation like that before though. Sorry

 

[MrE]

I know what a limited liability company is, never seen the abbreviation like that before though. Sorry

We use Ltd over here

 

[MrE]

Mind thanks for lmgtfy, I will have fun with that

 

[413Blue]

MLS LLC owns all the contracts including DP's. They'd lose Single Entity status right away if they were challenged in court and some contracts were outside the LLC

Yes, but the DP's may be able to have specific clauses in their contracts, such as who they play for, guarantee's etc. that typical players don't have. But yes, even DP's are contracted with the LLC.