City Football Group brings in Chinese partners for $400m

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Chinese Premier Xi Jinping, Sergio Aguero and British Prime Minister David Cameron

Chinese investors have agreed to pay $400m for a stake in City Football Group, the parent company of Premier League title challenger Manchester City Football Club. The funds come from a consortium led by private equity groups China Media Capital and CITIC Capital, both investment funds backed by the Chinese government. The deal will see the consortium take a 13 per cent share in City Football Group, valuing the company at approximately $3bn.

Over the past seven years City Football Group has knit together a global football media and operations conglomerate with an active presence on four continents. In addition to Manchester City FC, the group also owns Melbourne City (A-League), NYC FC (MLS), and holds a minority stake in the Yokohama F. Marinos (J-League).  The new Chinese investors contribute more than just capital, they bring access to the rapidly growing Asian media and consumer markets for City Football Group’s growing stable of brands. China Media Capital is an active investor in sports media, just recently investing $1.25bn to purchase the rights for the Chinese Super League and investing alongside Dalian Wanda in sports marketing firm Infront Sports & Media.

Chinese investors have been extremely active in the soccer market, with domestic teams like the Guangzhou Evergrande closely tied to corporate ownership and La Liga clubs Valencia and Atletico Madrid bringing on new owners. The City Football Group stake represents the first public investment in the English Premier League by Chinese investors, a move that holds particular significance for the league’s growth in the Asian region.

Khaldoon al-Mubarak, chairman of City Football Group, said it best: “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.”

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City Football Group brings in Chinese partners for $400m

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