City Football Group Look to Expand in China After Selling 13% Stake to CMC

City Football Group (CFG), the parent company of football clubs such as Manchester City FC, New York City FC and Melbourne City FC, have agreed a deal with private equity fund CMC (China Media Capital) which sees them and CITIC Capital acquire a 13% stake in CFG.

After six months of negotaiations, CMC Holdings and CITIC Capital have invested US$400 million to take a shareholding in the group and values CFG at US$3 billion. 

The deal is designed to grow CFG’s clubs across China and internationally and boost its presence within the Chinese football industry.

The agreement will see new shares issued in City Football Group in addition to the ones held by the Abu Dhabi United Group (ADUG), the investment and development company privately owned by Sheikh Mansour.

CMC will represent the consortium at Board level with Ruigang Li, the Chairman of CMC becoming a member of the City Football Group Holding Company Board – which as a result of the agreement, will increase from six to seven members.

Khaldoon Al Mubarak, Chairman of City Football Group said: “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. 

“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.”

CMC Chairman Ruigang Li said: “Football is now at a fascinating and critical stage of development in China. We see unprecedented growth opportunities 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.  

“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.”

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