Man City's billionaire owners "will explore the possibility of buying a Chinese football club as part of their ambitious global expansion plans," according to James Ducker of the LONDON TIMES. City Football Group, the umbrella organization comprised of Man City, Major League Soccer side New York City FC, A-League side Melbourne City and a minority shareholding in J.League side Yokohama F Marinos, announced Tuesday it sold a 13% "stake in the company to Chinese investors" for $400M. CFG and Man City Chair Khaldoon al-Mubarak said that the move would give them an "unrivaled platform to grow CFG, our clubs and companies in China and internationally." Initially the deal is "intended to give City's owners a strong foothold commercially in the world's most populous country and Asia's most lucrative football market." Yet having created its MLS franchise in N.Y. and taken ownership of Melbourne Heart (rebranded Melbourne City), it is "understood that Mansour could seek to take ownership of a club in China in time." As well as the commercial benefits of teaming with China, the country’s "burgeoning desire to become a global footballing power could result in a rich talent pool of players emerging in the years to come and City would be well positioned to tap into that by establishing a permanent presence there." Sources at CFG were insistent that the "latest development was not the consequence of an intergovernmental deal between China and Abu Dhabi" and that the recent visit of Chinese President Xi Jinping to the Eithad Stadium and training complex "was unconnected" (LONDON TIMES, 12/2).
FOOTBALL SUPERPOWER: In London, Tom Phillips reported Xi "has made no secret of his desire" to transform China "into a global superpower that can one day host -- and win -- a World Cup." When a Chinese consortium bought a 13% stake in Man City, "that dream moved one step closer to reality." While on the surface the multi-million-pound deal between CFG and China Media Capital "was all about Man City, it is also designed to help revolutionise the Chinese game and bolster Xi's quest for footballing -- and political -- glory." CMC Managing Dir Xu Zhihao told Chinese reporters that he and his colleagues "had not simply wanted to buy a top-flight football club." They "also thirsted for knowledge and experience of the English sports industry that could be transferred back to China." Xu said, "That [is what] will benefit Chinese football" (GUARDIAN, 12/2).
BILLIONAIRE'S BET PAYS OUT: CNN's Jim Boulden wrote when Abu Dhabi's Sheikh Mansour bought struggling Man City "it seemed like a risky investment." Not "any more." Mansour -- a member of Abu Dhabi's ruling family -- reportedly paid just $350M-$400M to "buy the club" from former Thai PM Thaksin Shinawatra in '08. That is "something like a 650% return." Not "bad for a 7-year investment, even when factoring in fees to buy players and the huge salaries they demand." Financial success has "followed a resurgence on the pitch." Man City has won the EPL twice "since Mansour's takeover." Before his investment, "the club last won those honors" in '68 (CNN, 12/1).
CHINESE GOVERNMENT LINKS: In London, Ben Chu reported the consortium is made up of China Media Capital and CITIC Capital, "two private equity funds with close links to the Beijing government." CMC is a Shanghai-based fund founded in '09 with "backing from the Chinese state." Its portfolio is "largely made up of sporting and entertainment assets." This year it signed a deal with Hollywood studio Warner Bros to "launch a Chinese language film production venture," and it also recently completed a deal with U.K. theme park owner Merlin to "develop a Legoland resort in Shanghai." CMC Founder and Chair Li Ruigang is a "former government official in Shanghai." CITIC Capital claims to manage $5B of capital "on behalf of investors and invests in real estate and other illiquid assets." Those investors "include the state-owned investment conglomerate CITIC Group and China Investment Corporation," the country’s $650B sovereign wealth fund. Qatar Holdings "also has money invested in the fund." CITIC Group itself dates back to "the dawn of China's economic opening-up and was founded by Rong Yiren in 1979 with the approval of the country's supreme political leader Deng Xiaoping" (INDEPENDENT, 12/1).
STRATEGIC MOVE: In London, Richard Tanner reported Man City dismissed any suggestion its billionaire owner is "looking to sell the club" following the announcement Mansour sold a 13% stake of the club to Chinese investors. City has been "quick to allay any fears" among its followers that Mansour is "looking to cash in by selling the club." A club spokesperson said, "This is really significant for our supporters -- this is not the beginning of the end. We have not gone out looking for investors. There has been interest before and we've not gone down that route. This is a strategic move" (EXPRESS, 12/2).
TONY BLAIR: In London, Edward Malnick reported former U.K. PM Tony Blair took al-Mubarak to meet senior officials in China "two years before the country bought a large stake in Britain's richest football club." Blair introduced al-Mubarak to high-level contacts in '13, "raising the possibility that he laid the groundwork" for a $400M investment deal. The disclosure comes after a Telegraph investigation revealed in June how Blair had begun privately "acting as broker between Abu Dhabi and China" (TELEGRAPH, 12/1).
