Chinese investors pay US$400m for 13% stake in Man City parent
Print Edition
China yesterday planted its flag in the English Premier League as a consortium of Chinese investors bought a 13 percent stake in Manchester City’s parent company for US$400 million.
China Media Capital (CMC) and CITIC Capital purchased the stake in City Football Group (CFG), which had previously been wholly owned by the Abu Dhabi United Group (ADUG), just weeks after Chinese President Xi Jinping visited the club. The deal is part of CFG’s plan to expand into Chinese soccer and reflects Xi’s aim to make China a “football powerhouse.”
“The deal will create an unprecedented platform for the growth of CFG clubs and companies in China and internationally, borne out of its ability to provide a wealth of industry expertise and resources to the rapidly developing Chinese football industry,” CFG, CMC and CITIC said in a joint statement.
The capital from the share acquisition will be used by CFG to fund its China growth and international business expansion opportunities, it said.
As well as Manchester City, CFG owns New York City FC and Melbourne City FC and is a minority shareholder in Japanese club Yokohama F. Marinos.
The deal, which values CFG at about US$3 billion, is still subject to regulatory approval.
It comes after Xi was given a tour of Manchester City, twice Premier League champions in recent years, during a state visit to Britain in October.
British chancellor George Osborne had previously announced a 3-million-pound (US$4.5 million) investment package for grassroots football in China.
Earlier this year, Xi released a 50-point plan to turn the country into a “football powerhouse,” including proposals to set up 50,000 soccer schools.
The list of owners of Premier League clubs includes investors from Russia, Thailand and the United States, but China has never previously made such a significant investment in one of the division’s superpowers.
“Football is the most loved, played and watched sport in the world and in China, the exponential growth pathway for the game is unique and hugely exciting,” said CFG chairman Khaldoon Al Mubarak.
CMC Chairman Li Ruigang will join the CFG board, becoming its seventh member.
“We and consortium partner CITIC Capital ... see this investment as a prime opportunity for furthering the contribution of China to the global football family,” Li said.
Former sole owner, ADUG was formed in 2008 when Sheikh Mansour bin Zayed Al Nahyan completed the purchase of City from former Thai Prime Minister Thaksin Shinawatra.
It made City, who have spent much of their existence in the shadow of cross-town rivals Manchester United, one of the world’s richest clubs.
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