🌎 How Girona are Fuelling Manchester City's Global Takeover

Manchester City are like Red Bull Racing.

Everyone knows they’re breaking the rules - and those rule breaches have directly contributed to them achieving success at the highest level.

However, no-one seems to be doing anything about it.

They posted record revenue this week (£712.8m) breaking the Premier League record previously held by Manchester United.

Winning the Premier League, the FA Cup and the Champions League saw them play more matches at the Etihad than in any season before, leading to Matchday revenue jumping significantly to an all-time high £71.9m.

As you can imagine they were on TV alot last year so their broadcasting revenue jumped by an extra £50m compared to the year before also. They added a healthy number of commercial partners to their roster too.

The most fascinating part for me is the fact that they had a quiet clearout this past year. Despite signing Erling Haaland for a lot of money, they had 29 players and staff leave the club.

Even with over 100 FFP charges hanging over their heads, they got leaner and saw more success as a result.

It’s not just in the UK they’re seeing success either!

Today we dive into what they’re doing around the world which in my opinion, is equally as impressive!

Manchester City are the epicentre of the City Football Group.

CFG is the baby of Ferran Soriano, the ex-Barcelona VP of economy who formed this vision of a global footballing empire in 2008. He wanted to do this as a leading figure in the Barcelona setup but he resigned from his post in the Joan Laporta regime and revived the idea he was approached to run things at Manchester City.

CFG’s strategy is to acquire under-performing clubs around the world and invest money them to improve the teams’ performances forming a global empire of football.

The company also aims to develop young players on its lower-tier teams and then funnel them to Manchester City once they have matured. A strategy famously operated by Chelsea under Roman Abramovich.

The ownership structure of CFG itself is simple. There are three parties involved:

• Abu Dhabi United Group (ADUG) (81%)

• Silver Lake Capital (18%)

• China Media Capital (CMC) Consortium (1%)

Interestingly Silver Lake invested $500m for just 10% of CFG in 2013 - a slice which has increased over time.

Since CFG’s inception, they have bought ownership in ten football clubs around the world.

Manchester City, New York City FC, Melbourne City FC, Yokohoma F. Marinerios, Montevideo City Torque, Girona FC, Sichuan Jiuniu, Mumbai City FC, Esperance Sportive Troyes Aube Champagne (ESTAC), Club Bolivar

Their Spanish efforts are where we focus our attention today as in 2017, City Football Group took a 44.3% stake in Girona Football Club.

Interestingly enough at the same time, a company owned by Pere Guardiola (the agent and brother of Pep Guardiola Girona Football Group acquired a 44.3% stake too.

One would think that being a part of the CFG network means that they benefit from Abu Dhabi’s endless riches, but so far that has not been the case.

Two years after the investment they got relegated to the Segunda Division.

They didn’t get promoted back to La Liga until 2022. When they did they finished 10th and made a move to sign their club record transfer - a chap they bought for just €7.5m.

Fast forward to this season and they are currently top of La Liga.

Yes, at the time of writing this very newsletter Girona are TOP of La Liga.

They’re top because they play great football. They have a great manager and they score a lot of goals. After 13 games so far, Girona have scored more than any other team in La Liga — including Jude Bellingham and his antics in Madrid!

What’s interesting is their use of ex-City players, or their lack thereof. Since 2017 Girona have brought in 15 players through the CFG network but their best player Aleix Garcia is the only one that has made a lasting impact. The rest have either moved elsehwere.

There is no telling where they finish this season but after their current start European football is very much a possibility for this lowly Spanish team.

I saw a report that said the 44.3% purchased by CFG was for £3.5m. If they do go on to make the Champions League this season, it makes you wonder what that investment would be worth next summer!

I’ll leave you this week with a brilliant conversation.

Simon Jordan’s podcast has become a must-listen for me. The Stuart Broad episode is fantastic.

His latest episode is with Rick Parry. Former CEO of Liverpool Club and current Chairman of the Football League.

In one short hour they discuss:

• How the Premier League formed and how Rupert Murdoch was pivotal in it’s creation

• The impact of COVID on English Football

• The economic difference between the Premier League and the Football League and a whole lot more

This pod was a TLP fans’ dream!

I’ll see you next week.

Salud.