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China Nets Stake In Manchester City Owner

China Nets Stake In Manchester City Owner

A state-backed consortium of Chinese investors is buying a 13% stake in the owner of Premier League giants Manchester City.

The investors - led by China Media Capital (CMC) Holdings and CITIC Capital - are paying $400m (£265m) for the stake in City Football Group. The move values the group, whose network of world clubs also includes New York City FC, at $3bn (£2bn).

It also heralds a major investment in Chinese football - perhaps a new club with links to the Premier League side.

CMC, which holds the TV rights to the Premier League in China as well as the domestic Super League, is keen to capitalise on football's growing popularity in China - already the country's most-watched sport.

Its president, Xi Jinping, is a big football fan as he demonstrated by visiting City's facilities and meeting players during his state visit to the UK this autumn.

While there are understood to be no current plans to launch a major club in China under the deal, it offers greater scope for lucrative merchandising and club tours in the short term as China attempts to bolster domestic football and the fortunes of its national team.

The country may boast the second-largest economy in the world but its football team is currently languishing in 84th position in the FIFA world rankings.

The Chinese investors will be represented on the group board by CMC's chairman and City said that decision-making would be taken on a collective basis.

The deal involves the issue of new shares in City Football, in addition to those owned by Sheikh Mansour's Abu Dhabi United Group which bought Manchester City in 2008.

Khaldoon Al Mubarak, chairman of City Football, 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 City Football Group and for football at large."