The easy answer to EVERY QUESTION of this type is “Follow the money, and how & where it is made.”
When you find out how best to maximize profits, and where those profits get funneled, you’ll know why the PL is so attractive to American ownership.
These billionaires are uber-capitalists looking for a company (football team in a virtual monopoly situation) where they can print money, both in a subscription basis (TV revenues, season cards, sponsorships) and a simple “company valuation” basis.
One is the financial backdrop for the investment (increasing valuation of teams), while the other is the gift that keeps on giving, to either invest is the growing valuation, or in serving as seed money for other ventures, or (as the Glazers have done) as the capital needed to cover their other debts in other (sports) franchises.
We are fortunate in that, to this point, we have had an American-style owner (deep pockets, growth project) who has yet to siphon off funds or seek to cash in on the exponential growth of his original investment.
That said, it doesn’t mean that Mansour’s share dilution to Silver Lake isn’t EXACTLY what “taking cash out of the business” looks like.
Today, no-one can know what the future holds for the ADUG-Silver Lake balance, but it appears Manaour already has the American ownership lined up, if he chooses to sell up and move on.
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Silver Lake’s significant investment in Manchester City Football Club, through the City Football Group (CFG), stems from a strategic partnership aimed at leveraging the convergence of entertainment, sports, and technology.
In 2019, Silver Lake invested $500 million, acquiring approximately 10% of CFG, which was valued at $4.8 billion post-investment . This investment allows CFG to enhance its technology and infrastructure, fostering global growth and new revenue streams .
By increasing its stake to 18% in 2022, Silver Lake solidifies its role as a key player in CFG’s expansion strategy.
Silver Lake’s partnership with Manchester City Football Club could unlock several new revenue streams:
1. Cross-Promotion and Bundled Offerings: Collaborating with other brands could lead to co-branded merchandise and ticket packages, enhancing customer value and driving sales.
2. Expanded Market Reach: Leveraging Silver Lake’s expertise can help Manchester City penetrate new markets, attracting diverse customer segments and increasing brand visibility.
3. Digital Innovations: Investments in technology could enhance fan engagement through digital platforms, creating new monetization avenues like exclusive content or virtual experiences.
4. Affiliate Marketing Programs: Implementing referral programs can generate leads and sales through partnerships, expanding the customer base without significant upfront costs.
These initiatives can substantially increase Manchester City’s revenue potential in the evolving sports landscape.
Egon Durban will play a pivotal role in Manchester City’s future strategy through his position on the City Football Group (CFG) board.
His expertise in technology investments and global market dynamics will help drive CFG’s growth, particularly in leveraging the convergence of sports and entertainment.
Durban’s involvement aims to enhance fan engagement, expand market reach, and identify new revenue streams, aligning with CFG’s vision of redefining soccer globally.
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And that’s from just a quick search…of public information.
Simple investment growth strategy:
1) Global reach in key population markets through PL TV contracts & CFG Team Network.
2) Intersection of Sports, Entertainment and Technology (City name, eSports, Co-op Live, increasing internet footprint, including sale of in-house content to global media platforms such as Netflix (Together: Four in a Row) and also groundbreaking ventures like Amazon Prime’s “All or Nothing.”
BUT, it is ALL based on the successful halo club at the top of that pyramid and that success centers around:
1) A high PL position (£££),
2) Entry into the Champions League (£££), and especially the later knockout rounds (+£££),
3) Being one of the top clubs that is consistently on TV across the globe due to that success (£££),
4) An attractive ticket on the weekend (££) , including for tourists who spend BIG money to visit (££),
5) Having viable, successful Women’s and eSports teams (£+) that capture an audience that is not necessarily captured by the Men’s team, but which attract additional revenues.