Man City owners sell $500m stake to private equity firm - announcement expected soon
The owners of Manchester City have agreed to sell a $500m stake to US private equity firm 'Silver Lake' - a deal that 'breaks a record in sports valuations', according to an exclusive report from the Financial Times on Wednesday.
According to the Financial Times, Silver Lake have agreed to purchase more than 10% of City Football Group at a valuation of $4.8 billion. The US-based private equity firm have recently diverted to movements in entertainment industry, with names including 'Ultimate Fighting Championship' and 'Endeavor' (a Hollywood talent agency) within their portfolio.
Manchester City and City Football Group chairman Khaldoon Al Mubarak was spotted alongside Silver Lake managing partner Egon Durban on Saturday, as Pep Guardiola's side lead his team to a 2-1 victory over Chelsea in the Premier League. It is claimed that this came just hours after a deal was signed by the pair.
According to the report, the US private equity firm intends to hold its stake in Manchester City/City Football Group for 'about a decade', but could cash out through an 'initial public offering' or 'sell to another private investor'. It is important to note, and it is stressed by the report, that City Football Group's Abu Dhabi owners intend on retaining their majority ownership in the business.
The City Football Group maintain their plan of investing and purchasing more football clubs globally, as part of a plan to dominate the football scene. As well as the $500m investment aiding such movements, it is also suggested by the Financial Times that it could aid the funding of New York City's new stadium - with plans to construct a new facility in place.
This month, Manchester City had announced record revenues in their annual report, significantly closing the gap with city rivals Manchester United in a financial sense - a gap that the CFG-owned side are set to close and overtake by next season.
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