Manchester City Owner Sells Its Stake, Breaking Valuation Record!

Manchester City owner sell stake to Silver Lake

The English Premier League Champion Manchester City match V/s ShaktarDonestk on Wednesday ended up with 1:1, which was enough for the City Group to qualify and top finish in Group C. Well, the City Football Group (CFG) is not only striking its best game-play on the field, but also goal posting the best deal in the soccer world.

Manchester City owner is selling a $500 million stake to the private equity firm Silver Lake, the owner’s valuation to $4.8 billion.Financial Times reported that the deal has been signed between CFG Chairman, Khaldoon Al Mubarak, and Silver Lake Managing Partner, Egon Durban, on Sunday.

The US-based equity firm has pivoted its investment game around tech-savvy companies, such as Alibaba, Dell, and Skype; however, it expanded its portfolio with investments in the Ultimate Fighting Championship and Hollywood talent agency Endeavor. Financial Times has also reported that the firm wouldn’t limit itself to one club and would be approaching other English and European Clubs too.

The Abu Dhabi Royal family-owned football group, CFG, bought the Manchester City club in 2008 and has invested millions of dollars to scoop out the biggest titles and prizes in the soccer world. The group also stepping into the Indian soccer industry and is set to acquire Indian Super League (ISL) Mumbai City FC, according to the people familiar with discussions.

In 2015, Sheikh Mansour, a member of the Royal family, sold 13% of his CFG stake to China Media Capital for $400 million. He has retained 77% stake in the group, while the remaining 10% were sold off to Silver Lake. Manchester City recorded $686.6 million in revenue for the year 2018–19, making its 11th consecutive year of profitability.

CFG owns stakes in seven football clubs including New York City FC in MLS and Melbourne City in the Australian A-League. The deal announcement is expected to be announced on Wednesday. Silver Lake plans to hold its stake in the club for 10 years and seek out cash by selling it to another private investor.


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