Manchester City F.C. - Ownership and Finances

Ownership and Finances

The holding company of Manchester City F.C., Manchester City Limited, is a private limited company, with approximately 54 million shares in issue. The club has been in private hands since 2007, when the major shareholders agreed to sell their holdings to UK Sports Investments Limited (UKSIL), a company controlled by former Thailand prime minister Thaksin Shinawatra. UKSIL then made a formal offer to buy the shares held by several thousand small 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, having acquired 75% of the shares, Thaksin de-listed the club and re-registered it as a private company. By August UKSIL had acquired over 90% of the shares, and exercised its rights under the Companies Act to "squeeze out" the remaining shareholders, and acquire the entire shareholding. Thaksin Shinawatra became chairman of the club and two of Thaksin's children, Pintongta and Panthongtae also became directors. Former chairman John Wardle stayed on the board for a year, but resigned in July 2008 following Nike executive Garry Cook's appointment as executive chairman in May. The club made a pre-tax loss of £11m in the year ending 31 May 2007, the final year for which accounts were published as a public company.

Thaksin's purchase prompted a period of transfer spending at the club, spending in around £30 million, whereas over the previous few seasons net spending had been among the lowest in the division. A year later, this investment was itself dwarfed by larger sums. On 1 September 2008, Abu Dhabi-based Abu Dhabi United Group Investment and Development Limited completed a takeover of Manchester City. The deal, worth a reported £200 million, was announced on the morning of 1 September. It sparked various transfer "deadline-day" rumours and bids such as the club's attempt to gazump Manchester United's protracted bid to sign Dimitar Berbatov from Tottenham Hotspur for a fee in excess of £30 million. Minutes before the transfer window closed, the club signed Robinho from Real Madrid for a British record transfer fee of £32.5 million. The wealth of the new owners meant that in the summer of 2009, the club was able to finance the purchase of several experienced international players prior to the new season, spending more than any other club in the Premier League.