FOOTBALL takeover fever gripped the City in the wake of a $500 million (£388 million) investment in the owners of Manchester City by US tech specialist Silver Lake.
That investment, in return for a 10% stake, values City Football Group at an astonishing $4.8 billion, almost double the value of arch-rival Manchester United. Manchester City had revenues last year of just £535 million, giving the club an extraordinary price/earnings value on traditional City measures.
Analysts say this is on the expectation that UK clubs will increasingly be able to leverage their powerful brands across the world, selling content and tech deals to hundreds of millions of fans at home, in Asia and in the US. One City rumour has it that Spurs and West Ham are already up for sale now they are in new stadiums.
By some measures CFG is now the most valuable sports franchise in the world. Massimo Marinelli, chief executive at Aser, the company which bought Leeds United in 2017, said: “It’s a fantastic deal and puts it above NFL franchises. It’s a testament to European sports. “Silver Lake has history in sports having bought IMG and UFC previously. It’s not just a drive for TV rights, this is also about retail and online expansion.”
Egon Durban, managing director of Silver Lake, said: “We are excited to invest in CFG, which is redefining football globally and... has built an impressive global platform of marquee football clubs.” Some are sceptical that other football businesses compare with Man City.
Football analyst David Bick said: “In my view, clubs should not run away with the idea their own valuations will suddenly shoot up. City have a very specific business model. No one else has done it, at least not successfully. “Silver Lake’s motive is partly technology and also content — both sport and entertainment. It gives it reach.”
Manchester United is majority owned by the Glazer family, who are said to be split on whether to keep the club or sell it. Trading in the shares of Man United, with a New York Stock Exchange listing, will be watched closely. Shares in Celtic rose 2%, or 2.4p, to 164.85p. Celtic is listed on AIM and Dermot Desmond, the Irish entrepreneur, is the major shareholder with 35%. It is rumoured Desmond is open to offers about a minority stake sale.
