Man City takeover plan emerges after news from Premier League HQ
City Football Group (CFG) has assured its network of clubs that it will continue to financially support them regardless of the outcome of the Premier League’s case against Manchester City, according to sources speaking to Football Insider.
Despite the uncertainty surrounding their prized asset, it is believed that CFG has no plans to add to their current portfolio of 12 clubs in the near future.
After acquiring the historic Brazilian club Bahia in December of last year, the multi-club empire’s decision-makers had already halted any short-term expansion plans.
The very real possibility that the club, which generates 90% of the group’s revenue, could be hit with unprecedented sanctions has prompted CFG to reevaluate its long-term objectives in light of the charges against Manchester City.
The Premier League has leveled 130 allegations of financial misconduct against City, for which the maximum sanction could be relegation or an unlimited fine.
Before the case is heard by the league’s three-member independent commission, the case is unlikely to have a significant impact on the other 11 clubs in the CFG network, according to a credible source.
It could take up to four years for City to learn their fate, by which time CFG anticipates that clubs within the network will be showing signs of profitability on their own.
City currently account for the majority of CFG’s approximately £5billion enterprise value, but it is hoped that MLS side New York City and recently-acquired Bahia can generate significant returns in maturing markets.
CFG has offices on four continents and has invested heavily in some of the game’s fastest-growing leagues.
The acquisition of Bahia cost more than £100 million, and construction of the new stadium in New York City will cost CFG approximately £650 million by 2027.They are owned 81 percent by Abu Dhabi United Group, 18 percent by American private equity firm Silver Lake, and one percent by China Media Capital.
Man City takeover plan emerges after news from Premier League HQ
