Published: Thu, November 28, 2019
Sport | By Ruben Hill

Manchester City owners now UK's richest sports group

Manchester City owners now UK's richest sports group

"Silver Lake, a global leader in technology investing, has signed a definitive agreement to make a US$500 million equity investment, equivalent to just over 10% of the company's post-investment value".

United States private equity giant Silver Lake is investing $500 million in the owner of Manchester City, a deal that values the soccer group at almost $5 billion and signals a concerted move by the veteran tech investors into sports.

As part of the arrangement, Egon Durban, a managing partner and managing director at Silver Lake, will become CFG's ninth board member. It is a huge sum for a minority stake and does not come from a company based in Abu Dhabi or China, the homes of CFG's existing owners.

Manchester City spent much of the 1990s in the doldrums, often out of England's top-flight league and far behind Manchester United, which remains England's record league title holders with 20 championship titles.

That values the group at 4.8 billion dollars. CFG has a stake in seven football clubs, including in the US, Australia, Japan and China.

The remaining 12% share of CFG equity is held by a consortium of Chinese institutional investors, led by media and entertainment group CMC Inc.

Silver Lake, which is best known for technology investing, said its stake would "help drive the next phase of CFG's growth in the fast-growing premium sports and entertainment content market".

Manchester City has denied wrongdoing, but it could be banned from the prestigious Champions League for a year if soccer authorities rule against the club.

The club is the reigning English Premier League champion. The club won an unprecedented domestic treble last season.

The one cloud on City's horizon is a potential ban from the Champions League if found guilty of breaching UEFA's Financial Fairplay rules.

The other clubs in CFG's portfolio are Melbourne City, Yokohama F Marinos, New York City FC, Uruguayan outfit Club Atletico Torque and Spanish side Girona.

Man City this month reported record high 2018-19 revenue of 535.2 million pounds (RM2.8 billion) in a fifth consecutive year of profitability.

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