Two Chinese firms are teaming up to invest $400 million in the owner of the Manchester City FC football franchise for a minority stake, as part of a growing trend of Chinese buyers gaining sports and entertainment assets across the globe.
China Media Capital Holdings (CMC) and Citic Capital Holdings Ltd. are purchasing 13 percent of City Football Group that owns Manchester City FC, as well as other football-related assets. The deal will bring the City Football Group's value to around $3 billion.
City Football Group is controlled by an investment company based in Abu Dhabi.
City Football Group plans to use the added funds to grow in China as well as other international markets, according to a statement.
CMC, founded by media tycoon Li Ruigang, also has media rights to China's top domestic football league, the Chinese Super League. Li will serve on City Football Group's board.
Citic Capital manages around $5 billion worth of private-equity funds and other assets from both Chinese and international investors.
Manchester City FC has become the top team in the English Premier League since it was acquired by Abu Dhabi United Group, owned by Sheik Mansour bin Zayed Al Nahyan. It is currently the number one team at the Premier League, with its longtime rival Manchester United placed third.
In addition to Manchester City FC, City Football Group also owns New York FC and Melbourne FC.
European football, especially the English Premier League, has a strong fan base in China.
Other Chinese investors have also acquired stakes in the Spanish football league. Dalian Wanda paid $52 million to get a 20-percent stake in Atletico Madrid, while Rastar Group bought 56 percent of Espanyol.