Silver Lake Increases Stake in Manchester City Parent Company By

© Reuters.

By Geoffrey Smith — US private equity firm Silver Lake has increased its stake in the parent company of English soccer champions Manchester City, the latest in a string of big bets on global sport.

According to the Financial Times, the group has bought a 4.1% stake in City Football Group from China Media Capital, increasing its stake to 14.1% and making it the group’s second largest shareholder behind Sheikh Mansour bin Zayed Al of the Emirates. United Arabs. Nahyan.

Shanghai-based CMC’s stake has therefore fallen to 8.2% and appears to be part of a trend of Chinese investors gradually withdrawing from flagship entertainment assets as a domestic economic slowdown puts pressure on the finances of some.

CFG has extended its tentacles across world football over the past two years, taking advantage of the struggling valuations many clubs have been forced into by the pandemic and the loss of ticket revenue. Over the past two years, CFG has added majority stakes in Italy’s Palermo FC, Belgium’s SK Lommel and France’s ESTAC Troyes to a portfolio that already included the MLS franchise of New York City FC and other Sichuan clubs. , China, Yokohama and Melbourne, Australia.

The FT gave no details on the valuation of the operation. Silver Lake had first acquired a 10% stake in CFG in 2019 for a valuation of $4.8 billion.

The financial clout behind Manchester City has transformed the fortunes of a club long overshadowed by its more famous neighbour, Manchester United. He has won five English Premier League titles since Sheikh Mansour first invested there and is also the first leader of the current Premier League season. City are now at the top of Deloitte’s annual ranking by revenue among global football clubs.

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