Private Equity firm Silver Lake invests $500 million into Manchester City owner City Football Group
Premier League title holder Manchester City sell large stake in the club for $ 500 million in a deal that is said to break a new sports record.
US private equity firm Silver Lake said in a statement that the deal is equivalent to just over 10% of the City Football Group (CFG) club’s value of $ 4.8 billion..
American firm Silver Lake, which positions itself as «world leader in technology investment», was founded in 1999 and is based in California. The company has already invested in the entertainment industry and is reportedly eyeing other UK and European clubs..
The Financial Times, which first reported the story, says Silver Lake has attracted high sums paid for football rights by broadcasters and internet groups..
Fundraising will help CFG expand. The group, headquartered in Abu Dhabi, also has offices in China and the United States. She will remain the majority owner «Manchester city».
The list of top European clubs based on their financial position and published by the auditing firm KPMG in May put «Manchester city» in fifth place with a cost of 2.46 billion euros. Silver Lake deal will make the club one of the most expensive sports franchises in the world.
US Investment Comes Despite UEFA Finance Investigation «Manchester city» for alleged violations of fair play rules. Investigators have recommended that the club be barred from participating in the Champions League, and a court decision is expected soon.
Ultimately success «Manchester city» will depend on his results on the field. The club won the first of four English Premier League titles in 2012 but has yet to reach the Champions League final. The team qualified for the last 16 events of this year last night.
The dependence of the leading echelons of English and European football on wealthy investors from abroad, especially the countries of the Persian Gulf, was criticized. Some people dislike it when ownership of soccer clubs a vehicle for promoting countries like the United Arab Emirates in a way that distracts from becomes criticism of those countries for not respecting human rights..
Investments in «Manchester city» at half a billion dollars is also in stark contrast to the plight of some of its smaller neighbors. In the summer, two Manchester clubs learned about their serious financial difficulties.