Ownership of Manchester City F.C.

The Ownership of Manchester City F.C. traces back to 1894, when Ardwick A.F.C. dissolved and were reformed as Manchester City Football Club Ltd.

Financial structure

The holding company of Manchester City F.C., Manchester City Ltd, is a private limited company. The club has approximately 54 million shares in issue.

In 2007 UK Sports Investments Limited, a company controlled by the former Prime Minister of Thailand, Thaksin Shinawatra, took control of the club in a takeover worth £81.6 million, purchasing shares from all major shareholders. Prior to the Thaksin takeover, the club was listed on the specialist independent equity market PLUS (formerly OFEX), where it had been listed since 1995. On 6 July 2007, upon acquiring a 75% share in the club, Thaksin delisted the club and re-registered it as a private company; on later acquiring 90% of shares Thaksin was able to "squeeze out" remaining shareholders and acquire the remaining shares.

In September 2008 the Abu Dhabi United Group acquired the club when Thaksin Shinawatra was unable to access his funds in Thailand, frozen by Thai courts as he faced corruption charges. The new owners, even before the deal was finalised, signified their intentions by making offers for a series of world-class players on transfer deadline day. The takeover was completed on 23 September.

History

The modern day Manchester City Football Club became a registered limited company on 16 April 1894. [cite book |last=James |first=Gary |title=Manchester City - The Complete Record |publisher=Breedon |location=Derby |year=2006 |id=ISBN 1-85983-512-0 p26] Shares in the club were owned by a number of club figures, who all had one share each. An early board member was newspaper owner Edward Hulton, who held influence at the start of the 20th century. [cite book |last=James |first=Gary |title=Manchester – A Football History |publisher=James Ward |location=Halifax |year=2008 |id=ISBN 978-0-9558127-0-5|pages=111]

Peter Swales became chairman in October 1973, [cite book |last=Clayton |first=David |title=Everything under the blue moon: the complete book of Manchester City FC - and more! |publisher=Mainstream publishing |location=Edinburgh |year=2002 |id=ISBN 1-84018-687-9 p49] and held the position for more than 20 years.

In 1994, Swales was ousted from his chairmanship by former City player Francis Lee, whose paper business F.H Lee Ltd. had made him a multimillionaire. Lee's takeover was preceded a long anti-Swales campaign by supporters, who had formed a movement named "Forward With Franny" backing his attempt to gain control of the club.cite web | title= Maine line to nowhere for Lee|work=Independent| url=http://www.findarticles.com/p/articles/mi_qn4158/is_19980317/ai_n14147174| accessdate=April 15| accessyear=2007] Lee gained control of the club by purchasing £3 million of shares at a price of £13.35 per share. [cite web | title= After all that... This|work=Guardian| url=http://www.uit.no/mancity/mcivta/demise.html| accessdate=April 15| accessyear=2007] Upon becoming chairman, Lee made a series of extravagant claims about his plans for the club, announcing that "This will be the happiest club in the land. The players will be the best paid and we'll drink plenty of champagne, celebrate and sing until we're hoarse". The club floated on the OFEX exchange in 1995, valuing the club at £8 million. [cite web | title=Company Information: Manchester City plc|work=Company Eye| url=http://www.unquoted.co.uk/companyinfo/ManCity.pdf| accessdate=June 21| accessyear=2007 (pdf)]

In 1996 Lee appointed his friend Alan Ball as manager, but the appointment proved unsuccessful and the club were relegated. Lee stepped down in 1998, with the club on the brink of relegation to the third tier of English football, a fate which Lee had dismissed at the previous annual general meeting by saying that he would "jump off the Kippax" if the club were relegated. [cite web | title= Fans fear Keegan's reign may spell glory or bust|work=Independent| url=http://www.findarticles.com/p/articles/mi_qn4158/is_20030308/ai_n12679826| accessdate=April 15| accessyear=2007] He was replaced as chairman by financial director David Bernstein.

In November 1999 broadcaster BSkyB purchased a 9.9% stake in the club for £5.5 million, plus a further sum for media rights. The deal was part of a series of acquisitions by BSkyB which included a similar stake in Leeds United. [cite web | title= Football: Manchester City hit lottery jackpot|work=Independent| url=http://findarticles.com/p/articles/mi_qn4158/is_19991111/ai_n14273494| accessdate=June 21| accessyear=2007] A share rights issue announced at the same time as the BSkyB purchase saw JD Sports founders John Wardle and David Makin increase their stake and become the club's largest shareholders. [cite web | title= Manchester City plc - Share Subscription/Rights Issue |work=PLUS Markets Group | url=http://www.plusmarketsgroup.com/story.shtml?ISIN=GB0005599336&NewsID=1001| accessdate=June 21| accessyear=2007]

Bernstein resigned on 5 March 2003, believing that differences of opinion regarding player transfers had undermined his ability to lead the club. [cite web | title= Man City chairman quits|work=BBC| url=http://news.bbc.co.uk/sport1/hi/football/teams/m/man_city/2821479.stm| accessdate=June 21| accessyear=2007] Bernstein had favoured a fiscally conservative transfer policy, but manager Kevin Keegan and major shareholder John Wardle wished to spend heavily on new players, such as Robbie Fowler. [cite web | title= Football: Bernstein quits as Keegan wins City fight|work=Independent| url=http://findarticles.com/p/articles/mi_qn4158/is_20030306/ai_n12673553| accessdate=June 21| accessyear=2007] Wardle became temporary chairman, taking the position on a permanent basis two months later. [cite web | title= Football: Wardle takes permanent post at Manchester City|work=Independent| url=http://findarticles.com/p/articles/mi_qn4158/is_20030520/ai_n12695273| accessdate=June 21| accessyear=2007] Bryan Bodek, who had been a board member since February 2000, [cite web | title= Offer for subscription to raise up to £2.5M and floatation on AIM|work=Medical House plc| url=http://www.derweb.co.uk/group_info/pressroom/190600.html| accessdate=June 21| accessyear=2007] was appointed as his deputy.

Thaksin Shinawatra buyout

In December 2006, the club issued a statement regarding a possible takeover, [cite web | title=Manchester City plc - Statement re Possible Offer| work=PLUS Markets Group | url=http://www.plusmarketsgroup.com/story.shtml?ISIN=GB0005599336&NewsID=23836| accessmonthday=April 30 | accessyear=2007 ] prompting press speculation about potential buyers. On 24 April, former Manchester City player Ray Ranson announced interest in making an offer for the club, [cite web | title= Ranson's 'inadequate' bid leaves City cold| work=Independent | url=http://sport.independent.co.uk/football/premiership/article2483847.ece | accessmonthday=April 30 | accessyear=2007 ] though the club denied press reports that a bid had been made. [cite web | title=Manchester City plc - Statement re Ray Ranson| work=PLUS Markets Group | url=http://www.plusmarketsgroup.com/story.shtml?ISIN=GB0005599336&NewsID=24765| accessmonthday=April 30 | accessyear=2007 ] On 1 May 2007, it was announced that former Thailand Prime Minister Thaksin Shinawatra had been granted access to the club's accounts. [cite web| last =
first =
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coauthors =
title = Ex-Thai PM steps up Man City bid
work =
publisher = BBC Sport
date = 2007-05-01
url = http://news.bbc.co.uk/sport1/hi/football/teams/m/man_city/6610593.stm
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accessdate =2007-05-01.] However, the deal was thrown into doubt when Thailand's military government froze £830m of Shinawatra's assets after they investigated allegations of corruption made against him. [cite web | title=Man City call for Thaksin answers| work=BBC | url=http://news.bbc.co.uk/sport1/hi/football/teams/m/man_city/6742401.stm| accessmonthday=June 18 | accessyear=2007 ] On 21 June, the Manchester City board accepted an £81.6million offer for the club from Thaksin Shinawatra and advised the shareholders to accept the bid. On 6 July, Thaksin finally acquired a 75% share in the club, enough to take full control of the club and delist it as full owner. [cite web |url=http://news.bbc.co.uk/1/hi/business/6277502.stm |title=Thaksin completes Man City buyout |publisher=BBC Sport |accessdate=2007-07-06] One of his first moves was to schedule a press conference to announce former-England manager Sven-Göran Eriksson as his new manager. [cite web |url=http://news.bbc.co.uk/sport1/hi/football/teams/m/man_city/6241052.stm |title=Eriksson named as Man City boss |publisher=BBC Sport |accessdate=2007-07-06]

Abu Dhabi United Group buyout

In August 2008, it became increasingly likely that Thaksin would fail to retrieve his frozen assets from Thailand. His wife, Pojaman Shinawatra, was convicted of acquiring large tracts of land for grossly-underpriced values and sentenced to three years imprisonment on 31 July 2008 [ [http://www.iht.com/articles/reuters/2008/07/31/asia/OUKWD-UK-THAILAND-THAKSIN.php iht.com/articles, Ex-Thai PM's wife guilty of tax fraud] ] , and following this news, Thaksin's own court dates approaching, and Pojaman's bail, a visit by the Shinawatra family to the 2008 Beijing Olympics led to them using the opportunity to leave the country for London, where they then applied for political asylum in the United Kingdom. [ [http://news.smashits.com/281898/Former-Thai-premier-seeks-asylum-in-Britain.htm smashits.com, Former Thai premier seeks asylum in Britain] ] This led to the Thai courts issuing an extradition request to the British Government, and the courts beginning to try them in absentia, effectively ending any hopes of the money being released and further affing the possibility that Thaksin would come to breach Premier League rules on club ownership, which prevent owners convicted of corruption charges from retaining control of their club. In response to this, Thaksin offered to resign his position on the board, an offer which was rejected by Garry Cook, Man City's Executive Chairman, [ [http://sportsillustrated.cnn.com/2008/soccer/wires/08/23/2080.ap.eu.soc.man.city.thaksin.0414/index.html, Thaksin offers to resign from Man City board] ] and also began attempting to sell minority stakes in the club for investment. [ [http://sport.setanta.com/en/Sport/News/Football/2008/08/27/Premier-League-Cook-on-City/, Thaksin open to City investment] ] After being rejected repeatedly with counter-proposals to buy majority stakes numerous, it was then announced on 1 September 2008 that the club were in talks with the Abu Dhabi United Group to sell Thaksin's entire stake, a deal which was agreed later in the day. [cite web |url=http://www.manchestereveningnews.co.uk/sport/football/manchester_city/s/1064885_blues_in_150m_takeover |title=Blues in £150m takeover |publisher=Manchester Evening News |accessdate=2008-09-01]

As part of the takeover, Dr Sulaiman Al-Fahim, a board member of the company and the man both leading the talks and mooted to be the new Chairman, promised a top four finish within three seasons, indicating that he would give a show of his intent by capturing at least one world class signing, naming such players as Mario Gomez, David Villa, Dimitar Berbatov and Robinho as in his sights, having made bids for all four on behalf of his new club already. With the deal for the sale of the club going through on the last day of the summer transfer window, negotiations were forcibly limited, but while a deal for Berbatov was accepted by the club but not by the player, with a few minutes remaining in the transfer window, Manchester City were able to confirm the signing of Robinho for a British transfer record £32.5 million, concurrently the fifth largest transfer fee in the history of football.

The period of due diligence ended on 21 September, with Sheikh Mansour bin Zayed Al Nahyan, owner of the Abu Dhabi United Group, and Thaksin Shinawatra agreeing the transfer of the club on 23 September. [cite web |url=http://www.mcfc.co.uk/default.sps?pageid=115&pagegid=%7BDBD12D53%2D8346%2D431D%2DA04F%2D5D0F8664DE80%7D&newsid=6618827&siteid=&pageno=&newscategory=1051&frommonth=7&fromyear=2008&tomonth=9&toyear=2008 |title=Club takeover update |publisher=Manchester City F.C. official website |accessdate=2008-09-23] As part of their new board, Dr Al-Fahim's presumed position of co-Chairman was conspicuously filled by Khaldoon Al Mubarak instead, with Al-Fahim's loose-tongued comments about buying an all-star team cited as the reason for his demotion, his comments having produced much negative media backlash and having gone against Al Nahyan's more long-term and rather more restrained plans for the club.

Board

"As of 23 September 2008"

References