Abu Dhabi-owned City Football Group sells 13% stake to Chinese investors

The group, which owns Manchester City FC, has sold the stake for $400m to a group led by China Media Capital Holdings and CITIC Capital

6 December 2015

City Football Group, which owns the Manchester City, New York and Melbourne City football clubs, has sold 13% of its stake to a consortium of Chinese investors led by investment firm China Media Capital Holdings and CITIC Capital. The deal is valued at $400m and is subject to regulatory approvals. Overall the investors valued the group at $3bn, a statement said.

CFG was previously fully owned by Abu Dhabi United Group, the investment company of United Arab Emirates’ Deputy Prime Minister Sheikh Mansour bin Zayed al Nahyan. The company said that new shares, in addition to those held by Sheikh Mansour, will be issued.

The capital from the share acquisition will be used by CFG to fund its China growth, further its international business expansion opportunities and develop CFG’s infrastructure assets. The partnership between both parties is expected to help CFG penetrate the Chinese market effectively. It is also working to identify and implement China-based initiatives for the CFG portfolio of clubs and companies.

“Football is the most loved, played and watched sport in the world and in China, the exponential growth pathway for the game is both unique and hugely exciting,” said CFG's chairman Khaldoon Al Mubarak.

“We have therefore 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 CFG. Our belief is that we now have an unrivalled platform to grow CFG, our clubs and companies, both in China and internationally. We will be working hard with our new partners to realise the potential that this deal creates.”