City Football Group (CFG) has announced that private equity firm Silver Lake has signed a definitive agreement to make an investment of $500m (£389m) in the company.
The Group says the investment is equivalent to just over 10% of the company’s post-investment value, putting CFG’s overall value at $4.8bn (£3.73bn).
CFG says that proceeds from the investment will be used by City Football Group to fund international business growth opportunities and develop CFG technology and infrastructure assets. It has also confirmed that no existing shareholders are selling equity as a result of the investment, but the number of board members will increase from eight to nine, with the inclusion of Egon Durban, Managing Partner and Managing Director, Silver Lake.
Khaldoon Al Mubarak, Chairman, City Football Group said: “Silver Lake is a global leader in technology investing, and we are delighted by both the validation that their investment in CFG represents, and the opportunities for further growth that their partnership brings. We and Silver Lake share the strong belief in the opportunities being presented by the convergence of entertainment, sports and technology and the resulting ability for CFG to generate long-term growth and new revenue streams globally.
“We welcome the opportunity to work with Egon and the Silver Lake team and its network to facilitate the global growth and deepening of CFG Club fanbases and the development of our business as a whole.”
Durban added: “We are excited to invest in CFG, which is redefining football globally and in doing so has successfully built an impressive global platform of marquee football clubs across five continents.
“We greatly respect CFG’s stewardship of more than a century of football tradition and the strong global fanbases of its clubs. We are excited to partner with the Board and CFG’s world-class management team to help drive the next phase of CFG’s growth in the fast-growing premium sports and entertainment content market.”
CFG’s stable of football clubs includes Premier League Champions Manchester City, New York City FC, Melbourne City FC, Yokohama F. Marinos in Japan, Club Atletico Torque in Uruguay, Girona FC in Spain and Sichuan Jiuniu FC in China. The wider company employs more than 2,000 people in 12 locations.