A new £210m investment by Silver Lake could dilute Sheikh Mansour’s stake in Manchester City’s parent company, City Football Group (CFG), amid major stadium expansion plans.
New £210M Investment Signals Ownership Shake-Up:
Manchester City’s majority owner Sheikh Mansour may see his stake diluted following a £210million investment through a new share issue by City Football Group (CFG), the parent company of Manchester City. This investment comes as CFG looks to support ongoing financial commitments, including the club’s stadium expansion.
Stefan Borson, a former financial adviser to Manchester City, has indicated that the American investment firm Silver Lake is likely behind this latest move.
- Just in case you want to join other Cityzens in real-time, JOIN Our “Cityzens Discuss City” Telegram Group.
Details of the Share Issue:
A recent submission to Companies House on 29 November confirmed that CFG has issued nearly 24 million A Preference Shares, which total approximately £210million. This isn’t the first time CFG has used this approach, as a similar £210million share issue was made in June this year.
Borson highlighted that Silver Lake has been the primary shareholder in these A Preference Shares since their initial investment in 2019. The firm initially bought a 10 per cent stake in CFG, which has since grown to 18.1 per cent, while Sheikh Mansour’s Abu Dhabi United Group continues to hold 78.7 per cent.
Impact of the Investment on Sheikh Mansour’s Stake:
Borson explained that Silver Lake’s increased shareholding is likely to dilute other shareholders’ stakes, including Sheikh Mansour’s ownership.
He noted:
“It looks like what they have done is taken money from Silver Lake. Silver Lake are the only party historically that have had A Preference Shares.”
Borson further pointed out that this change could push Silver Lake’s stake closer to 25 per cent, a significant percentage that could influence decision-making under English company law due to special resolutions.
Stadium Expansion Driving Investment:
The new financial injection comes as Manchester City spends an estimated £300million to expand the Etihad Stadium. This expansion will add a third tier above the North Stand, increasing the stadium’s capacity to more than 60,000 seats.
Borson suggested that CFG’s ongoing infrastructure projects cannot be entirely financed by its revenues alone, leading to reliance on shareholder contributions like Silver Lake’s latest investment.
Borson added:
“CFG as a whole doesn’t make the money to pay for the ongoing infrastructure projects. They would either have to raise debt… or they would have to take the money from the existing shareholders or new shareholders.”
WHAT’S NEXT?
The financial moves and shareholding changes will become clearer in January, as Companies House filings will outline the updated shareholder list. This could reveal whether Silver Lake has cemented its position as a stronger financial player within CFG and how this affects Sheikh Mansour’s shareholding.
Borson’s insights suggest significant shifts are underway, with this latest injection marking a pivotal moment for CFG’s future ownership structure.
CITATIONS: This report is based on Stefan Borson’s analysis and comes from his comments to Football Insider regarding Silver Lake’s influence and the financial realities behind CFG’s recent moves.
KEEP IN MIND:
Sheikh Mansour’s stake dilution could change the dynamic of CFG’s ownership structure and future decision-making. Manchester City’s plans for expansion will likely remain a key financial priority as this situation develops.
