The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksGOAL.L Regulatory News (GOAL)

  • There is currently no data for GOAL

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Joint Venture

25 Jul 2017 07:01

RNS Number : 9819L
Goals Soccer Centres PLC
25 July 2017
 

Goals Soccer Centres plc

 

("Goals" or the "Company")

 

North American Joint Venture with City Football Group

 

 

Goals Soccer Centres plc, a leading operator of outdoor small-sided soccer centres with 48 sites, including two in California, North America, is pleased to announce it has entered into a strategic 50:50 Joint Venture with City Football Group ("CFG")1, the global football group which owns a number of leading football clubs including Manchester City, New York City and Melbourne City, to accelerate the growth of the Goals brand in North America.

 

Highlights:

 

· All of Goals' North American operations, which include all existing and pipeline sites, have been transferred to the Joint Venture;

· CFG is providing $16 million of initial committed expansion capital which combined with cash flow from the Joint Venture will self-finance an ambitious program of new site openings in North America;

· CFG have granted a licence to the Joint Venture to use its brands2 to promote the Joint Venture business in North America.

· The Joint Venture to be led by a six-member board, chaired by Goals' Chairman Nick Basing.

 

The Joint Venture will combine Goals' existing North American operational expertise and site sourcing capability with CFG's footballing, marketing and commercial expertise. The substantial new funding will accelerate the growth of Goals' existing North American presence and also allow the Company to focus UK cash flow on investment in the Arena and Clubhouse modernisation projects in the UK.

 

The Joint Venture will be permitted to use the brands which CFG owns, including Manchester City, to drive its North American marketing activity where appropriate. The Joint Venture will also be able to engage in targeted promotional initiatives across CFG's fan networks.

 

The Joint Venture will be launched today at Goals Pomona in Los Angeles by Nick Basing (Chairman of Goals) and Ferran Soriano (CEO of CFG) who will be joined by a number of Manchester City players including new signing, Danilo, as well as Leroy Sane, Yaya Toure and Nicolas Otamendi.

 

The profit before tax associated to the assets which are being transferred into the Joint Venture by Goals was £0.2m for the 2016 period, with the Company's profit before tax expected to reduce by £0.2m in the current year as the Joint Venture's earnings will be consolidated on a proportionate basis. As at 31 December 2016, the reported book value of those assets being transferred into the Joint Venture by Goals was £8.2m. It is expected that as new sites are opened those new sites will make an increasing contribution to the Company's profits. Goals will not receive any additional proceeds from the transfer of its North American operations into the Joint Venture.

 

CFG is a holding company established in 2013 to oversee the creation and administration of a network of linked football clubs and other footballing operations. CFG is run as a holding company under parent company the Abu Dhabi United Group Investment & Development Limited together with Chinese part-owners China Media Capital and CITIC Capital. CFG currently owns a number of football clubs, including Manchester City in the English Premier League, New York City which plays in Major League Soccer and Melbourne City playing in the Hyundai A-League in Australia.

 

Nick Basing, Chairman of Goals said:

 

"I am delighted we have concluded our new partnership with City Football Group which will transform the prospects to expand our North American estate.

 

This is a transformational agreement for our Company to grow and strengthen the North American business. We are delighted to be partnered with a global leader in soccer and believe the combination will give us significant competitive advantage at a time when the emerging market is in its infancy."

 

Ferran Soriano, CEO of CFG said:

 

"This is a very exciting development for our plans in the US and Canada. Soccer is indisputably the world's number one sport and growing fast in this region. We have an ambitious vision in North America to grow the sport, including our JV with Goals, ownership of New York City FC in MLS and many other initiatives.

This initiative shows City Football Group's continuing commitment to soccer in North America. This partnership with an excellent and recognized operator like Goals gives us the best opportunity to succeed"

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

25 July 2017

 

Enquiries:

Goals Soccer Centres plc

Mark Jones, Chief Executive Officer

Bill Gow, Chief Financial Officer

01355 234 800

Canaccord Genuity Limited (Nominated Adviser and Broker)

Bruce Garrow

Chris Connors

Richard Andrews

020 7523 8350

Instinctif Partners

Matthew Smallwood

 

020 7457 2020

City Football Group

Toby Craig (BST -8hrs) +44 7710 380248

 

 

 

 

 

1 - City Football Group is a holding company established in 2013 to oversee the creation and administration of a network of linked football clubs and other footballing operations. It is run as a holding company under parent company the Abu Dhabi United Group Investment & Development Limited together with Chinese part-owners China Media Capital and CITIC Capital.

2 - City Football Group currently owns a number of football clubs, including Manchester City which plays in the English Premier League, New York City which plays in Major League Soccer and Melbourne City which plays in the Hyundai A-League in Australia.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
JVESEFSIIFWSEDW
Date   Source Headline
4th Apr 201211:32 amPRNForm 8.5 (EPT/RI)
4th Apr 201211:24 amRNSForm 8.3 - Goals Soccer Centres PLC
4th Apr 20129:10 amRNSForm 8.3 - GOALS SOCCER CENTRES
3rd Apr 20122:53 pmRNSForm 8.3 - Goals Soccer Centres PLC
3rd Apr 20122:47 pmRNSForm 8.3 - Goals Soccer Centres plc
3rd Apr 201212:25 pmPRNForm 8.5 (EPT/RI)
3rd Apr 201212:07 pmRNSForm 8.3 -Goals Soccer Centres
3rd Apr 201211:13 amRNSForm 8.3 - Goals Soccer Centres Plc
3rd Apr 201211:08 amRNSForm 8.3 - Goals Soccer Centres Plc
3rd Apr 201210:57 amRNSForm 8.3 - GOALS SOCCER CENTRES
2nd Apr 20125:45 pmRNSForm 8.3 - Goals Soccer Centres Plc
2nd Apr 20122:00 pmRNSForm 8.3 - GOALS SOCCER CENTRES (FIRST DISCLOSURE)
2nd Apr 201212:30 pmRNSForm 8.3 - Goals Soccer Centres PLC
2nd Apr 20127:00 amRNSStatement regarding press speculation
26th Mar 20127:00 amRNSChange of Name of Adviser
5th Mar 20122:49 pmRNSDirector/PDMR Shareholding
2nd Mar 201210:57 amRNSHolding(s) in Company
29th Feb 20123:29 pmRNSHolding(s) in Company
28th Feb 20127:00 amRNSPreliminary Results
24th Feb 20124:47 pmRNSHolding(s) in Company
8th Feb 20127:00 amRNSChange of Adviser
13th Jan 20121:42 pmRNSHolding(s) in Company
10th Jan 20127:00 amRNSTrading Update
16th Dec 20117:00 amRNSNotification of Post Close Update
4th Nov 20115:58 pmRNSHolding(s) in Company
3rd Nov 20111:17 pmRNSHolding(s) in Company
28th Oct 20115:24 pmRNSHolding(s) in Company
14th Sep 20115:23 pmRNSHolding(s) in Company
5th Sep 20117:00 amRNSInterim Results
8th Jul 20112:45 pmRNSHolding(s) in Company
7th Jul 20114:32 pmRNSHolding(s) in Company
7th Jul 20114:31 pmRNSHolding(s) in Company
1st Jul 20117:00 amRNSPost Close Trading Update
20th Jun 20119:00 amRNSNotification of Update
10th Jun 20114:17 pmRNSExercise of Options and Issue of Equity
3rd Jun 20112:48 pmRNSHolding(s) in Company
4th May 201110:35 amRNSHolding(s) in Company
28th Apr 20113:03 pmRNSResult of AGM
28th Apr 20117:00 amRNSAGM Statement
13th Apr 20111:55 pmRNSHolding(s) in Company
5th Apr 20119:33 amRNSDividend Payment Date
29th Mar 20114:38 pmRNSDirector/PDMR Shareholding
28th Feb 20117:00 amRNSPreliminary Results
14th Feb 20119:00 amRNSNotice of Results
20th Dec 20106:22 pmRNSDirector/PDMR Shareholding (Replacement)
20th Dec 20102:55 pmRNSDirector/PDMR Shareholding
16th Dec 20102:19 pmRNSDirector/PDMR Shareholding
16th Dec 20107:00 amRNSDirectorate and Trading Update
14th Dec 20102:13 pmRNSHolding(s) in Company
14th Dec 201010:18 amRNSHolding(s) in Company

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.