A consortium of Chinese firms is investing $400M (all figures U.S.) for a "minority stake in the owner" of EPL club Manchester City, according to Rick Carew of the WALL STREET JOURNAL. China Media Capital Holdings and Citic Capital Holdings are "buying just over 13% of City Football Group, which owns the Manchester City franchise." The deal will put a $3B "value on City Football Group, which is controlled by an Abu Dhabi investment company." European soccer, particularly the EPL, "enjoys a solid fan base in China," and the search for "high-profile sports rights abroad comes as China has struggled to develop top-tier competition in its own professional sports leagues." City Football Group "plans to use the funds to grow in China and other international markets" (WALL STREET JOURNAL, 12/1). Man City said that China Media Capital Holdings and Citic Capital are "investing in the group after six months of talks and the deal remains subject to regulatory approval in some countries." The AP's Rob Harris notes the "injection of funding comes after Chinese President Xi Jinping visited the club during a four-day state visit to Britain in October." State-backed China Media Capital "was founded by Li Ruigang, an influential Shanghai Communist Party member who has deftly mixed business and politics" (AP, 12/1).
