Does Manchester City Have What It Takes to Go Global?
Five years ago, the Abu Dhabi United Group, owned by Abu Dhabi royal family member Sheikh Mansour bin Zayed Al Nahyan, purchased Manchester City. In one fell swoop, the team that once played in the third division of English football was propelled to winning the 2011 FA Cup and the English Premier League trophy in 2012.
A great deal of this success has been due to the international nature of the roster The Blues boast. Currently, the team has 15 foreign players—representing Europe, South America and Africa—which has added some valuable points to a globalized status as well as an increase in the number of fans around the world.
But the owners seem to be on a mission to make the team a truly global brand.
According to The Independent, City is aiming to establish their name and concepts in China, USA and Mexico. As an aside, the British newspaper also mentioned that City refused the Bloomberg agency’s recommendation to purchase a Major League Soccer franchise.
But money has never been much of an issue to City owners. The group spent hundreds of millions of dollars last year, bringing their overall monetary loss to $126, 274,600. As Financial Fair Play rules in the EPL state that a club cannot lose more than $58 million in a window of three years, there are potential problems awaiting City in the near future.
So is going global the best decision at the moment for the Blues?
The club’s chief executive, Ferran Soriano, thinks so:
“Having returned to the summit of English football, the club has earned the chance to compete for a place as one of the biggest and most successful clubs globally in the years ahead.”
Also, to exploit the club’s brand, City have given signals that they want to add two names of impact to their roster—the Chilean striker Alexis Sanchez and Brazilian wunderkind Neymar.
These two talented players would certainly drive a great deal of South American to the Blues. Interestingly, manager Roberto Mancini has said that he does not think Neymar would succeed in the EPL:
“Neymar is a good player. He’s young. I don’t know if he’s ready to play in England because the football is totally different. I think he will go to Barcelona or Madrid where the football is more technical. But Cavani and Falcao would work in England. They have experience. Both players are 26, 27. They are good enough to play in England.”
Though four months ago, the City manager did ask for permission from, at the time, to contact and make a move toward Neymar, as the Mirror reported.
Yet, some recent negative exposure could hurt City’s image and desire to globalize their trademark.
City youth player Courtney Meppen-Walter, 18, has been sentenced to 16 months in jail at Manchester Crown Court. The sentence is due his killing of a brother and sister by irresponsible driving after driving at almost double the speed limit, according to the Telegraph.
Nevertheless, City will continue to push its brand, just as Tottenham Hotspur and Manchester United have tried since the 1990s. However, for these two, attempts at garnering partnerships with other European teams was brought to a halt because it had become a distraction for the clubs
Italian club Udinese present a successful case, however. In partnerships with clubs around Europe, the Italians were recently were part of a large money-making transaction in the transfer of Alexis Sanchez to Barcelona.
The Blues are indeed looking for other channels of revenue, so much that they have considered expanding the number of seats at their home stadium, but the recent titles have not yet enlarged their number of fans to fill some extra thousand seats. Partnerships with small clubs throughout Europe and around the world have to be carefully analyzed. And only time can dedicate how successful they will become.
Time is not on the side of a team that has already doubled its loss approved by the league financial policy. Thus, concentrating on becoming a global powerhouse like Arsenal, Liverpool and Manchester United will have to take a more measured approach. By raising responsible and talented youngsters to reach the main team, increasing the number of trophies and building up a legacy that future generations can look upon, Manchester City will experience a growth of fans nationwide and perhaps worldwide.
But this is not something money can buy, at least for now.












Completely copied from a source but…Part 1
On the face of it, Manchester City looks to be in serious trouble. Its losses of £97.9 million translate to €120.6 million, way above its €50 million allowance. However, City has said it will be able to deduct £17 million from its 2011/12 total for academy spending and other items that are exempt from the FFPR under Annex 10, taking its losses down to £80.9 million.
Also, if a club has reduced its deficit (This is why City's £197.5 million loss during 2010/11 is important) and can prove that the ‘aggregate break-even deficit is only due to the annual break-even deficit of the reporting period ending in 2012 which in turn is due to contracts with players undertaken prior to 1 June 2010’, then Annex 11.2 of the FFPR applies, which allows a licensee to avoid being sanctioned for breaching the aggregate break-even deficit.
Part 2
In layman's terms, if Manchester City can prove that the main reason for it breaching the €50 million ‘acceptable deviation’ is wages paid during the 2011/12 season relating to players under contracts signed prior to 1 June 2010, then it can escape sanctioning. This exemption is because UEFA doesn't want to unduly punish clubs for players signed before the FFPR were drawn up in June 2010.
Guess what? The main reason for Manchester City breaching the €50 million deviation is because of wages paid during the 2011/12 season due to players signed prior to 1 June 2010. Such players include Gareth Barry, Joleon Lescott and Carlos Tevez, who is reputedly paid more than £200,000 per week. “Looking at the players involved, this is likely to save the club in excess of £60 million”, said Ian Lynam, a Partner with Charles Russell LLP.
Part 3
This takes City's losses down to £20.9 million (€25.7 million) for the 2011/12 season. This leaves City able to report a total loss of €24.3 million for the 2012/13 and 2013/14 seasons and still escape UEFA sanctions. City's prospects for the 2012/13 season look good. City will benefit from extra revenue from UEFA for qualifying for its Champions League as Premier League champion next season. A Nike kit deal signed in May 2012 will also add extra revenue.
City's statement said that it is positioned well for FFPR compliance. The club does face a task in generating enough revenue to compensate for its wage bill during 2012/13 and 2013/14 and it is also possible that City's losses could still rise above the permitted level – even with these exemptions. Perhaps it would be a better explanation to describe City's position as being positioned well to avoid UEFA sanctions under FFPR.