Menu
Finance

Chinese Investors Pay $400M For 13% Stake In Man City Owner CFG

Man City’s owners have sold a 13% stake in the club’s umbrella organization to Chinese investors for $400M, a move that values Man City and its sister companies at $3B, according to James Ducker of the LONDON TIMES. China Media Capital and CITIC Capital, an investment company, will take the shareholding in City Football Group, parent company of Man City, Major League Soccer club New York City FC and A-League side Melbourne City, after six months of talks between the parties. The deal, which is "subject to regulatory approval in some territories," is designed to "help expand CFG’s reach in China, football’s most sought-after market," and is the latest example of Man City Owner Sheikh Mansour’s "ambitious plans" for Man City and his other clubs. The latest move will see new shares issued in CFG in addition to those owned by Abu Dhabi United Group, the investment and development company privately owned by Mansour, and result in the appointment of CMC Chair Li Ruigang to the CFG board (LONDON TIMES, 12/1). In London, Josh Noble reported Chinese investors "have made their first foray into English football." Football, "both at home and abroad, has become a target for Chinese conglomerates and their wealthy founders." Li said, "Football is now at a fascinating and critical stage of development in China. We see unprecedented growth opportunities in both its development as an industry, being China’s most watched sport, and its inspirational role bringing people of all ages together with a shared passion." CFG Chair Khaldoon Al Mubarak said that the company had worked for months to secure the deal to help it tap into the "incredible potential that exists in China" (FINANCIAL TIMES, 12/1). The BBC's Bill Wilson reported the move will offer the chance for Man City and the other group clubs to "grow a fan base in East Asia, where there is huge competition between top clubs in Europe, and beyond, to build up supporter numbers." The "ultimate aim is to turn those football fans into customers of club products and services too." Professor Chris Brady, director for Sports Business at the University of Salford, said it was not just Man City that would benefit, as the move would "also help China in its goal of becoming a power in football, a sport where it has underperformed." Brady: "It is no coincidence that the Chinese President, Xi Jinping, included a visit to the Etihad on his recent state visit. ... Although the investment probably overvalued City it fits perfectly with the Chinese strategy" (BBC, 12/1).

'OPTIMUM MODEL': In London, Ian Herbert reported it is "unclear how much of the new Chinese money could go straight towards further strengthening" Man City's squad. UEFA's Financial Fair Play rules limit spending to the money clubs generate, "though there is to be a relaxation of that regime where new investment in a club is concerned." City said that the announcement of the deal followed more than six months of discussions among the parties "to find the optimum model and associated strategies for the partnership." The announcement reveals the "full significance" of the visit to the Etihad by President Xi last month (INDEPENDENT, 12/1).

EYEING EXPANSION: In London, Sam Wallace reported Sheikh Mansour "will remain the guiding force" behind the club's "extraordinary" expansion program, but has opened up a new front. There had been "no previous intention" by Mansour and Al-Mubarak to sell a stake in the CFG holding company "despite numerous offers by investors." The alliance "also hints at much deeper geopolitical cooperation by the ruling Abu Dhabi elite, of which Mansour is a key figure, and the Chinese government." The "extraordinary power of English football, and its reach around the world, is a convenient way of consolidating that alliance, as well as being potentially very lucrative" (TELEGRAPH, 12/1).

SBJ Morning Buzzcast: March 18, 2024

Sports Business Awards nominees unveiled; NWSL's historic opening weekend and takeaways from CFP deal

ESPN’s Jay Bilas, BTN’s Meghan McKeown, and a deep dive into AppleTV+’s The Dynasty

On this week’s Sports Media Podcast from the New York Post and Sports Business Journal, ESPN’s Jay Bilas talks all things NCAA. Big Ten Network’s Meghan McKeown shares her insight into the Caitlin Clark craze. The Boston Globe’s Chad Finn chats all things Bean Town. And SBJ’s Xavier Hunter drops in to share his findings on how the NWSL is making a social media push.

Learn more about your ad choices. Visit megaphone.fm/adchoices

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Global/Issues/2015/12/02/Finance/CFG-Investment.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Global/Issues/2015/12/02/Finance/CFG-Investment.aspx

CLOSE