MUMBAI: A term sheet is in place. As too in-principal agreement on the quantum of stake that City Football Group (CFG), owners of Premier League giants Manchester City FC, will take in Indian Super League franchise Mumbai City FC. All that remains is final agreement on the price CFG will pay for said stake.
A key meeting on the matter was held last week in Chennai and a definitive conclusion is expected to what has been an extended due diligence by CFG over the last two years that also involved other contacts with ISL’s Kolkata franchise ATK and the Tata Steel owned Jamshedpur FC.
That is one version of the status of the negotiations that have been going on between CFG and Bimal Parekh, co-owner and principal financier of Mumbai City FC. The other co-owner is the team’s public face and Hindi film A lister Ranbir Kapoor but it is noted chartered accountant Parekh who is making all the investment calls.
Speaking of Parekh, another version of the status of the talks with CFG is that the deal is done and was sealed during a final meeting that was held in London last week.
Whatever be the case, there is no argument that if not yet a done deal, all that remains is a final sign-off by both parties. Truth will be out either way sooner rather than later.
Which brings back to mind comments made by Manchester City FC CEO Ferran Sorriano while on a visit to India in early March. “Yeah, who knows, not immediately but India is a major opportunity for football,” the 50-year-old, who previously served as FC Barcelona vice-president, had said during the half-time broadcast interview of an ISL game.
Sorriano had further said: “Because there is talent, there is passion and we are very positive about development of football in India.
“And this is why we are here, we want to watch football, we want to see players, we want to meet people.
“With all these developments we have to be patient.
“We have some interest in some markets and countries where there is a genuine football passion and opportunities, like China, but also India. So there might be other opportunities in Asia.
“We’ve been looking at India for nearly two years now. I’d say this year we’ll end up doing an investment in India.”
For the record, Manchester City is a wholly owned subsidiary of the City Football Group (CFG), a holding company that administers association football clubs under the ownership of Abu Dhabi United Group (ADUG). It is part-owned by Chinese firms China Media Capital and CITIC Capital.
CFG also owns parts of clubs in the United States, Australia, Japan, Spain, and Uruguay. The company’s aim is to own a team on each continent, each with the identifier “City” in its name.
Besides its 100% stake in Manchester City, CFG currently has stakeholding to varying degrees in five clubs – New York City (80%), Melbourne City (100%), Yokohama F Marinos – Japan (20%), Club Atletico Torque – Uruguay (100%) and Girona FC – Spain (44.3%).
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