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Blog » Man City’s new owners: insight and perspectives
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Back to MCFCfans Blog Written on 03-Sep-2008 by malcylon
As the excitement surrounding City’s new ownership reaches dizzy heights, today MCFCfans launches a new page called, “Middle Eastlands.” A page for MCFCfans members to keep up with the latest news sourced from Abu Dhabi about City and our new owners. The page has all of the latest articles, relevent news feeds, links and we've even dug out the best of the latest video interviews.
In tandem with the page launch, we attempt to provide guidance on some of the noise flying around on talk shows, message boards, and in the press.
David Pleat on BBC 5 Live: “The deal was done so quickly, how do we know they are a ‘fit and proper person’?”
A fair question when considering an individual but the club has been purchased by The Abu Dhabi United Group, an investment vehicle. The Group is a private equity group fronted by Dr. Sulaiman Al Fahim, CEO of Hydra Properties. Hydra Properties is a subsidiary of Royal Group, which belongs to the ruling family in Abu Dhabi. This is somewhat incidental as the Group is effectively backed by the ruling party in Abu Dhabi. Sheikh Mansour Bin Zayed Al Nahyan is seen as the main player behind ADUG. He is a member of the royal family of Abu Dhabi. They control over 10% of the world’s oil reserves (90% of the oil reserves of the United Arab Emirates).
How do we know they will stick around for the long-term?
The culture of Arab investment in general is to forge long-term relationships. A good example of this is Arab investment in horse racing around the world. Companies and businesses are often seen as personal possessions rather than separate entities. It is unlikely that short to medium-term returns will be seen as a top priority over club success, pride, and global profile.
Why have they invested in Manchester City?
The key reasons are to: increase the profile of the U.A.E. and Abu Dhabi around the world; develop sport and football in Abu Dhabi by having a direct interest in a Premiership club; and quite possibly to upstage their rival family in Dubai. But this isn’t just being done on a whim. Abu Dhabi has been developing its’ involvement in sport through European Tour golf, Formula One, the World Rally Championship and more. No sporting portfolio is complete without Premiership football. But why City? Well Newcastle quoted a £400m price tag (is deal failure with ADUG any connection to the current Keegan affair by any chance?) and Arsenal was apparently too complicated. But I prefer Amanda Staveley’s quote today, “Manchester City sells itself.”
Who is Amanda Staveley?
She works for PCP Capital Partners and was hired by Thaksin Shinawatra to broker a deal to sell the club. She is better known for her ongoing involvement in trying to tie up the Dubia Investment Corporation with Liverpool. She is a former Businesswoman of the year and apparently dated the Duke of York. She's not bad looking either. Amanda is a mere 35 years old and you can bet that her pockets have become somewhat deeper having completed this deal.
Does Abu Dhabi in general have any other outside footballing interests?
Yes, via Hydra Properties. Dr Sulaiman Al Fahim, the public face of ANUG, is the CEO of Hydra Properties in Abu Dhabi. Hydra Properties and the Abu Dhabi Sports Council signed an agreement with Italian football club Inter Milan earlier this year to build the Inter Milan football academy in Abu Dhabi. Dr Al Fahim is quoted as saying, “Sport, whether it be football or something else, is something that is friendly and brings countries together."
Are there more potential investors that might invest in Premiership clubs?
Yes, this might be the tip of a very big iceberg. ADUG is a private investment vehicle, even though it is thought to have the backing of some in the ruling royal family. However, there are well over 20 sovereign wealth funds (SWF) around the world backed by governments. Not all are likely candidates to invest in a Premiership club by any means.
The next widely-tipped candidate to invest is the well-publicised potential investment by Dubai Investment Corporation (DIC is a SWF) in Liverpool. Commentators expect this investment to be speeded up following the ADUG’s investment in Manchester City. Amanda Staveley, who brokered the deal on behalf of Thaksin Shinawatra, was quoted as saying today that DIC were still interested in buying Liverpool. However, she also stated that several other gulf states were interested in buying City. Other possible candidates for investment in a Premiership club include Qatar, Kuwait, and Bahrain. But don’t rule out some of the Asian countries’ funds also considering investments in the long run.
How will the new owners treat the fans?
This may not be as worrying as it may seem on the surface. In the Arab world hospitality is seen as essential. It reflects the depth of a relationship and is a matter of pride and honour. The press in Abu Dhabi has made a point of highlighting the need for the new owners to be sensitive to City fans. “Manchester City is a club with a passionate local support base long resentful of their more glamorous – and successful – neighbours, Manchester United. So parading a Manchester City shirt with “Abu Dhabi United” inscribed upon it might not have been the best way to introduce themselves to the supporters,” worried The National in Abu Dhabi. But the cultural background and the objective of promoting Abu Dhabi globally will require ADUG to stay in with the fans, otherwise a reputation of respect and cultural understanding will suffer.
Where can I follow more news, information, and views about our new owners?
Become a member of MCFCfans and click on our new Middle Eastlands page. Here you can vote in our poll to give your reaction to the ADUG takeover, review related news, and post your views in the chat section.
Is there any article you can suggest that may help to put other concerns at rest?
Yes the article with the headline, “Abromovich will be a hard act to follow,” in The National in Abu Dhabi published last night quotes Falim saying some reasonable things about the fans, Mark Hughes, and transfer policy. The latest video interview with Al Fahim also appears on our Middle Eastlands page and mentions working with Mark Hughes.
What can I expect the atmosphere to be like at the Chelsea game?
Absolutely mental.
Should I be excited?
Yes, very!
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