Man City sell stake to US interests
Manchester City’s Abu Dhabi owners plan to accelerate their plans for global expansion after selling a £389 million stake in their football empire to investors from the United States, who are undeterred by the threat of Uefa sanctions against the English Premier League champions.
Silver Lake, a US private equity behemoth, yesterday acquired a 10 per cent share in City Football Group, a move which makes the company one of the most valuable sports franchises in the world at around £3.73 billion.
The decision to invest in CFG followed an extensive due diligence process into allegations that City breached Uefa’s Financial Fair Play rules, as well as a thorough examination of criticism of Abu Dhabi’s human rights record.
A hearing by Uefa’s club financial control body’s adjudicatory chamber is due to take place in the next fortnight amid the potential threat of a Champions League ban for City.
The club have always strongly denied any wrongdoing and their owners believe Silver Lake’s investment further validates their conduct.
The impact of the deal was widely felt, with shares in City’s rivals, Manchester United, rising by as much as 14 per cent, the biggest jump since the company went public in 2012.
The huge capital injection will be used primarily to fund the CFG’s aggressive global expansion plans that will extend to the imminent purchase of Indian Super League side Mumbai City FC, who are expected to become the eighth club in the group’s stable in the next 48 hours.
As well as Manchester City, the CFG network already comprises Major League Soccer side New York City in the US, Melbourne City in Australia, Chinese club Sichuan Jiuniu, Girona in Spain, Atletico Torque of Uruguay and Yokohama F Marinos in Japan.
Talks with Silver Lake — which has combined assets in excess of £33 billion and a portfolio of investments ranging from Alibaba, the Chinese online retail giant, and Tesla cars to the mixed martial arts giant UFC and Hollywood talent agency Endeavor — commenced in May, around the time Pep Guardiola’s side were completing an unprecedented domestic treble.