By Paul Nicholson
December 1 – City Football Group (CFG), the Abu Dhabi-owned football investment firm that counts Premier League leaders Manchester City as one of its clubs has announced a $400 million new investment from China, valuing CFG at $3 billion.
The 13% minority shareholding in CFG is being acquired by a group lead by CMC (China Media Capital) and is in partnership with Chinese institutional investor CITIC Capital. CMC is China’s leading media, entertainment, sports and internet investment company.
The deal will provide CFG with a platform to break into China’s rapidly growing football market. The $400 million capital from the deal will be used to fund the group’s expansion into China, said a club press release.
It is not known whether that push will include the acquisition of a Chinese Super League club by CFG to add to its other clubs Manchester City, New York City FC, Melbourne City, and Yokohama F. Marinos where it is a minority shareholder.
CFG owns a number of football related businesses that would benefit from access to the Chinese market and the new partnership is said to be “predicated on the opportunity to create new value for CFG in China and beyond by working with CMC, CITIC Capital and the Chinese football industry.”
The group says it has already been “working together, along with third parties, to identify and implement China-based initiatives for the CFG portfolio of clubs and companies.”
The deal is sad to have been six months in the making. Khaldoon Al Mubarak, Chairman of City Football Group said: “We have 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.
“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.”
New shares will be issued in City Football Group in addition to those held by the Abu Dhabi United Group (ADUG), the investment and development company privately owned by His Highness Sheikh Mansour bin Zayed Al Nahyan. Ruigang Li, the Chairman of CMC will join the City Football Group Holding Company Board.
“We see unprecedented growth opportunities (in football) 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,” said Li.
“CMC has long been dedicated to creating opportunities that facilitate positive developments in Chinese football from different aspects within the ecosystem. With its unique business model and distinct successes, City Football Group, whom we have come to know well, represents a differentiated systematic approach to building a global platform for football know-how, player development, academy programmes and commercial partnerships that will benefit China’s football industry on multiple levels. We and our consortium partner CITIC Capital also see this investment as a prime opportunity for furthering the contribution of China to the global football family.”
Contact the writer of this story at moc.l1734941036labto1734941036ofdlr1734941036owedi1734941036sni@n1734941036osloh1734941036cin.l1734941036uap1734941036