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City Football Group in biggest ever football debt deal

City Football Group, the parent company of Manchester City, has raised $650m in one of football's biggest ever debt deals.   The loan will become due in July 2028 and exceeds the €525m debt financing arrangement between Goldman Sachs and FC Barcelona.

CG intends to use the money to fund infrastructure projects such as a new stadium for its MLS franchise New York City FC.

The seven year loan was underwritten by Barclays, with HSBC and KKK Capital helping to arrange and distribute the debt.   CFG has also organised a revolving credit facility worth £100m.  Raising debt is thought to be a cheaper route to cash than selling equity. The money will help prop up the lossmaking group whose finances have been hit hard by the pandemic.

CFG's annual revenue dropped to £544m in the financial year ending June 2020, down almost 14 per cent because of lost ticket and broadcast sales,  The group's annual net loss widened to £205m from £84m a year earlier.

CFG majority owner Sheikh Mansour has spent an estimated £1bn on transforming Manchester City into a highly successful side.   City's revenues fell from £535m to £478m in the 2019/20 season, but the club showed a net profit of £10m.

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