Skip to main content

Posts

Showing posts with the label Silver Lake

Sceptical note about CFG sale

Writing in the Financial Times Tom Braithwaite puts a sceptical view about the acquisition of a stake in City Football Group by Silver Lake under the headline 'Silicon Valley is inflating the football bubble.' Silicon Valley gets accused of lots of things, but this must be a first. He questions the statement by Silver Lake boss Egon Durban that CFG is 'an impressive global platform of marquee football clubs across five continents.' OK, most of them are second or third rank, but with capacity for growth. He then goes on to assert that the fan base for Manchester City is 'thin'. It is true that at one time City was very rooted in Manchester and didn't have the global following of United. Indeed, it probably didn't have much of a fan base in Guildford where you could encounter United fans who had never been to Old Trafford. But City is catching up. The argument that media executives prefer Liverpool, Tottenham Hotspur, Chelsea or United doesn't...

Share sale puts high value on Manchester City

Manchester City's parent, City Football Group, has sold 10 per cent of the group for £389m to American private equity house Silver Lake in a deal that values City Group at £3.75 billion, more than a billion higher than Manchester United which has a market capitalisation of $2.8bn. CFG has a stake in seven clubs across the world. CFG is now valued at $4.84bn, a record for a sports group. Kieran Maguire of the PriceofFootball comments, 'Valuation seems very high given that City Football Group losing £1m a week over last couple of years. Silver Lake would not be putting in this amount of money unless very confident that City would be subject to avoiding a Champions League ban, but reports suggest that City are on better terms with UEFA.' Silver Lake reckon that even if City were given a Champions League ban for breaches of financial fair play rules, they would still be worth the valuation. Maguire added, 'Reports that money will be used to expand City group globally ...