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Chinese investors shell out €377m for stake in Man City

The consortium has purchased shares in the Premier League club just weeks after Chinese president Xi Jinping visited.

Soccer - UEFA Champions League - Group D - Manchester City v Sevilla - Etihad Stadium Nigel French Nigel French

CHINA HAS PLANTED its flag in the Premier League as a consortium of Chinese investors bought a 13% stake in Manchester City’s parent company for €377 million ($400 million).

China Media Capital (CMC) and CITIC Capital have purchased the stake in City Football Group (CFG), which had previously been wholly owned by the Abu Dhabi United Group (ADUG), just weeks after Chinese president Xi Jinping visited the club.

The deal is part of the CFG’s strategy of expanding into Chinese football and reflects Xi’s aim to turn his country into a “football powerhouse”.

“The deal will create an unprecedented platform for the growth of CFG clubs and companies in China and internationally, borne out of CFG’s ability to provide a wealth of industry expertise and resources to the rapidly developing Chinese football industry,” CFG, CMC and CITIC said in a joint statement.

The capital from the share acquisition will be used by City Football Group to fund its China growth, further CFG international business expansion opportunities and further develop CFG infrastructure assets.”

As well as Manchester City, the current Premier League leaders, CFG also owns New York City FC and Melbourne City FC and is a minority shareholder in Japanese club Yokohama F Marinos.

The deal, which values CFG at around €2.8 billion ($3 billion), is still subject to regulatory approval.

It comes after Xi was given a tour of Manchester City, twice Premier League champions in recent years, during a state visit to Britain in October.

British chancellor George Osborne had previously announced a €4.2 million (£3 million) investment package for grassroots football in China.

Earlier this year, Xi released a 50-point plan to turn the country into a “football powerhouse”, including proposals to set up 50,000 football schools across the country.

Chinese President state visit - Day Four British Prime Minister David Cameron with Chinese President Xi Jinping, Manchester City chairman Khaldoon Al Mubarak, former head of the Elite Development Patrick Vieira and striker Sergio Aguero last month.

The Premier League is hugely popular in China and David Beckham, one of its foremost icons, has been a global ambassador for Chinese football since March 2013.

The list of owners of Premier League clubs includes investors from Russia, Thailand and the United States, but China has never previously made such a significant investment in one of the division’s superpowers.

“Football is the most loved, played and watched sport in the world and in China, the exponential growth pathway for the game is both unique and hugely exciting,” said CFG chairman Khaldoon Al Mubarak.

“We have therefore worked hard to find the right partners and to create the right deal structure to leverage the incredible potential that exists in China, both for CFG and for football at large.”

CMC chairman Li Ruigang will join the CFG board, becoming its seventh member.

We and our consortium partner CITIC Capital … see this investment as a prime opportunity for furthering the contribution of China to the global football family,” Li said.

Prior to Tuesday’s announcement, the ADUG, an investment arm of the Abu Dhabi royal family, was the CFG’s sole shareholder.

The ADUG was formed in 2008 when Sheikh Mansour bin Zayed Al Nahyan completed the purchase of City from former Thailand prime minister Thaksin Shinawatra.

It made City, who have spent much of their existence in the shadow of cross-town rivals Manchester United, one of the world’s richest clubs.

- © AFP 2015

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    Mute Hibernicus Exule
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    Feb 4th 2014, 1:50 PM

    dont really belive in this “best player in the world” crap tbh especially young player or in certain positions,its just too hard to gauge but hazard is certainly up there

    and yes before people say it messi and ronaldo are streets ahead but its rarely been so easy to call !!

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    Mute Keith Wade
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    Feb 4th 2014, 7:23 PM

    Hazard is a world class player, I’m a United fan and would love to have him on the team, I watched the match against city last night and he had a great game, skipping by players, holding onto the ball. While not quite on the same level as messi or ronaldo yet, he has got the ability to be up there with the best, maybe in 5 years time probably the best player in the world? If he keeps going the way he’s going he’ll without a doubt be on top, I can’t wait to see the moment everyone realises that this guy could be number 1

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    Mute Hibernicus Exule
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    Feb 4th 2014, 8:26 PM

    yeah absolutely keith i hope you didnt think i was saying anything contrary to what you just said,i agree he has the potential to be world class and maybe the best in the world i just dont really belive in that title too much

    for example take messi and ronaldo out of it and there are easily a dozen players you could argue are “the best in the world” and as for saying hazard is the best young player in the world,im sure fans of every league would have a different answer,pogba in serie A.gotze in bundesliga and any of a number in spain could you really say he is better than them is my point

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    Mute Sam Beckett
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    Feb 4th 2014, 1:12 PM

    Jon Flanaghan anybody!!
    Nah Hazard is gifted in fairness

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    Mute Craig Lyon
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    Feb 4th 2014, 1:55 PM

    He is world class at 23 so who knows how far he will go…

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    Mute D11 Soldier
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    Feb 4th 2014, 1:13 PM

    What about that jacuzzi diver at yanited???
    Hazard is outstanding but needs to add more goals

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    Mute Chris Cantwell
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    Feb 4th 2014, 5:17 PM

    The kid dived I say about twice, the kid only 18 !! Years ahead of him…. Once he gets a grip of the game better, he will be a class act.

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    Mute Hibernicus Exule
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    Feb 4th 2014, 6:54 PM

    d11 do you actually support liverpool supporter or just hate united ?? you are a hateful idiot,juanazj is class and will be world class he dived once or twice about the same as that myth of a player you probably masturbate to steven gerrrard

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    Mute Chris Cantwell
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    Feb 4th 2014, 5:15 PM

    Unbalivable Player, One to keep an eye on in the future :)

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    Mute Eamonn Maloney
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    Feb 4th 2014, 4:17 PM

    Fap fap fap fap fap fap fap…….

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    Mute James Bos
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    Feb 5th 2014, 3:12 AM

    He certainly has the potential. Remember this goal against Man Utd last year in the FA Cup – http://goo.gl/EI5kZv Wow!

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