The Chinese have bought a stake in Manchester City, it has been revealed.
Manchester City’s parent company City Football Group has sold a stake to a group of Chinese investors for $400m (£264.6m).
City Football Group said the sale of the 13% stake to the “high profile” Chinese institutions, which include China Media Capital Holdings, a leading media and sports business, values the group at US $3bn (£1.98bn).
It is the first time since the transformational Abu Dhabi takeover in 2008 that there has been a change in the group’s shareholder base.
City Football Group is now more than Manchester City as there are now sister clubs in the US, Australia, and Japan.
Last month a Chinese delegation led by premier Xi Jinping visited the club’s Etihad Campus development, although this deal in unrelated to that occasion as talks with the investors have been ongoing for more than six months.
The investment could see a City Football Group club formed in China, where the popularity and profile of football is growing fast.
A statement on the club’s website said: “The deal will create an unprecedented platform for the growth of CFG clubs and companies in China and internationally, borne out of CFG’s ability to provide a wealth of industry expertise and resources to the rapidly developing Chinese football industry.
“The announcement follows more than six months of discussions among the parties to find the optimum model and associated strategies for the partnership.”
CFG said the cash from the share acquisition will be used to fund its China growth, further its international business expansion opportunities and further develop CFG infrastructure assets.
The statement added: “The CFG/CMC partnership is predicated on the opportunity to create new value for CFG in China and beyond by working with CMC, CITIC Capital and the Chinese football industry.”
The deal 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 bin Zayed Al Nahyan, and prior to this transaction the sole shareholder of City Football Group.
CMC will represent the consortium at board level with Mr Ruigang Li, the chairman of CMC becoming a member of the City Football Group Holding Company board.
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.”
He added: “Our partners have an incredible track record of creating value and could not be better placed to help us further evolve City Football Group. Our belief is that we now have an unrivalled platform to grow CFG, our clubs and companies both in China and internationally and we will be working hard with our new partners to realise the potential that this deal creates.”
On behalf of the investing consortium, 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.
“CMC has long been dedicated to creating opportunities that facilitate positive developments in Chinese football from different aspects within the ecosystem.
“With its unique business model and distinct successes, City Football Group, whom we have come to know well, represents a differentiated systematic approach to building a global platform for football know-how, player development, academy programmes and commercial partnerships that will benefit China’s football industry on multiple levels.
“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.”