Manchester City owner sells 13% stake to Chinese consortium

The parent company of Manchester City FC has sold a 13% stake to a Chinese consortium, marking the first time organisations in China have invested significantly in English football.

The consortium, which was led by venture capital firm China Media Capital (CMC) and state-owned CITIC Capital, is splashing out $400m (approximately £264m) for a stake in City Football Group (CFG), which was valued at $3bn during the transaction.

Commenting on the investment, CMC chairman Li Ruigang 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, which also owns New York City and Melbourne City football clubs, will use the capital from the share acquisition to drive growth in China, unlock international business expansion opportunities and develop its infrastructure assets.

The transaction follows a number of measures taken by the club in recent months to increase its presence across Asia. In October, City announced a new partnership with Hong Kong-based retailer EZShopnet, while CFG launched a new subsidiary, City Football Singapore.

Khaldoon Al Mubarak, the chairman of CFG, commented: “Football is the most loved, played and watched sport in the world and in China, the exponential growth pathway for the game is both unique and hugely exciting.

“We have therefore worked hard to find the right partners and to create the right deal structure to leverage the incredible potential that exists in China, both for CFG and for football at large.”

He continued: “Our partners have an incredible track record of creating value and could not be better placed to help us further evolve City Football Group.

“Our belief is that we now have an unrivalled platform to grow CFG, our clubs and companies both in China and internationally and we will be working hard with our new partners to realise the potential that this deal creates.”

Rumours surfaced at the end of October that CITIC Capital was planning to invest in Manchester United, but the company was quick to falsify them.

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