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United get boost from City sale

The sale of just over 10 per cent of City Football Group to equity firm Silver Lake boosted Manchester United's shares yesterday. United's New York listed shares jumped almost 13 per cent, bringing its market capitalisation to $3.1bn.

At first sight this cross city effect might appear to be a paradox. However, it is clear that the value of football clubs is being reassessed as new investors come into the market.

Many think that the value of media rights will rise in the long run, despite something of a plateau being reached for broadcasting fees. It is believed that the value of football media rights will increase as viewers increasingly switch to watching online. Whether that will be the case remains to be seen.

There may also be a bid for Manchester United. Rumours persist that Saudi Arabia's Crown Prince Mohammed wants to buy the club. It would be way of using the kingdom's financial muscle to project it on to the global stage and reshape perceptions about the desert state. Football is increasingly a soft power asset.

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