Former Manchester City financial adviser Stefan Borson has speculated that Sheikh Mansour’s majority ownership of Manchester City could drop below 50% as minority investor Silver Lake continues to increase its stake in the club’s parent company, City Football Group (CFG). This shift could lead to significant changes in decision-making and governance.
DETAILS:
Manchester City’s parent company, CFG, confirmed a £210 million investment through the issuance of nearly 24 million A Preference Shares on November 29. This mirrors a similar investment of the same amount in June. Both investments are understood to have come from Silver Lake, an American firm that first bought a 10% stake in CFG in 2019, subsequently increasing it to 18.1%. Meanwhile, the Abu Dhabi United Group (ADUG), led by Sheikh Mansour, retains a majority stake of 78.7%.
The latest injection arrives as CFG undertakes major infrastructure projects, including a £300 million expansion of the Etihad Stadium and a new stadium project in New York. These investments are expected to further dilute Sheikh Mansour’s stake unless ADUG decides to match the financial contributions.
QUOTES:
On Silver Lake’s increasing stake:
“I suspect they will breach the 25% mark and go further unless Sheikh Mansour’s vehicle decides to maintain their share by matching contributions,” said Stefan Borson to Football Insider.
On governance implications of Mansour’s reduced stake:
“Once Sheikh Mansour is below 50%, then we are in a different world,” Borson remarked. “At 50%, certain ordinary resolutions can be passed without agreement, which changes the dynamics significantly.”
On CFG’s ongoing projects:
“These projects are clearly going to be sucking up cash in the development phase, and somebody has to pay the bills,” he added.
CITATIONS:
This report is based on the information from:
- Companies House submission (November 29): Confirmed the £210 million investment in CFG.
- Football Insider: Exclusive comments from Stefan Borson on Silver Lake’s increased stake and its implications.
KEEP IN MIND:
This development raises questions about the long-term ownership structure of Manchester City. If Silver Lake continues to increase its stake and Sheikh Mansour’s ownership falls below 50%, CFG’s decision-making could shift, potentially impacting the club’s direction. However, it remains to be seen if ADUG will opt to maintain its majority stake by matching future investments.
