27 October – Sheikh Mansour has invested an extra £100m in City Football Group (CFG), strengthening his commitment even as Manchester City battle a Premier League verdict that could threaten their ownership.
Companies House filings show that on October 14, 11,327,163 new CFG shares were awarded and bought through Mansour’s Newton investment and development vehicle.
The deal increases its stake in CFG to around 81%, with US private equity firm Silver Lake owning most of the rest, and implies a valuation of approximately £5.9bn for the group.
CFG described the money as “the estate of our largest shareholder”.
“The proceeds will be used for normal corporate purposes against our strategic plans, funding planned investments in the City Football Group,” a spokesperson told City AM.
Just two weeks earlier, an independent commission found City guilty of 114 breaches of Premier League financial rules after concluding that commercial deals had been used to disguise owners’ funding and boost revenue over a nine-season period.
The City Council appealed, describing the decision as “unsafe” and arguing that it contains “clear material errors of law, principle and fact”.
If that appeal fails, the punishment has yet to be decided. Financial penalties, point deductions and even relegation remain among the possible sporting sanctions.
There is another potential headache for Mansour. The chairman of the Independent Football Regulator, David Kogan, said last week that the watchdog has “absolute power” to force an owner to sell if it concludes that a club has been run without the necessary ownership. Kogan stressed that the regulator will wait for the city’s appeal process to run its course before considering any action.
That leaves an unusual backdrop for the latest cash injection: Mansour is investing another nine-figure sum into CFG while the club’s future at the center is completely unresolved.
The city is by far the biggest asset, but still only part of the operation. CFG has controlling or significant interests in a network that includes New York City FC, Melbourne City, Girona, Palermo, Troyes, Bahia and Montevideo City Torque.
But there is little doubt where the crown jewel lies.
CFG chairman Khaldoon Al Mubarak said earlier this year the group would fetch at least $10bn (£7.3bn) on the open market and described its clubs as “jewels”, while insisting there was no desire to sell.
This resolution is now backed by another £100 million.
Contact the writer of this story, Harry Ewing, at (email protected)