atans1

Too bad for us HoHoHo doesn’t do footie

In Footie on 03/12/2015 at 4:56 am

Sheikh Mansour bought Sitty for US$360m in 2008. Now a Chinese consortium led by China Media Capital is to buy a 13% stake in Manchester City* for US$400m. That pots City;s value at US$3bn.

The Chinese are paying a rich price for the 13 percent stake in City Football Group – the holding company behind Manchester City. Including the group’s net debt, the 2 billion pounds price-tag values the enterprise at 6.1 times last year’s revenue, a Breakingviews calculation shows.

That’s an eye-watering 20 percent premium on quoted English Premier League rival Manchester United, which trades on 5.1 times trailing revenue. When Wang Jianlin, boss of Chinese property conglomerate Dalian Wanda, bought a 20 percent stake of Spain’s Atletico de Madrid in January, the implied enterprise value was 4.5 times last year’s sales.

http://blogs.reuters.com/breakingviews/2015/12/01/manchester-city-deal-is-good-business-for-china/

*And sister clubs in Melbourne and NY.

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