China Media Capital Holdings (CMC) and Citic Capital have signed an agreement to acquire a 13% stake in Manchester City FC’s holding company, City Football Group (CFG), for $400m. CFG, which turned Manchester City into a prestigious club with 2 Premier League titles over the last 3 years, will issue new shares in addition to those already held by Sheikh Mansour’s Abu Dhabi United Group. The breakdown between CMC and Citic was not reported; but CMC’s chairman Li Ruigang will become one of the 7 board members of CFG.
CFG will use the funds for its growth in and access to the Chinese market for all four of its football clubs: Manchester City, New York City, Melbourne City and Yokohama F Marinos.
“CFG has worked hard to find the right local partners to leverage the incredible potential that exists in China, both for CFG and for football as a whole,” said the group’s chairman, Khaldoon Al Mubarak.
CMC, a leading Chinese investment company in the media, entertainment, sports and Internet sectors, owns the exclusive media rights for the Chinese Super League and China’s national soccer team. Citic Capital, invests in property and private equity investments around the world.