The owner of English Premier League champions Manchester City is selling a major stake in the club for $500 million (€454 million) – in a deal said to set a new record for sports valuations.

A statement by Silver Lake, an American private equity firm, says the deal is equivalent to just over 10% of the new value of the owning company, City Football Group (CFG), which is estimated at US $4.8 billion (€4.36 billion).

The US firm, which describes itself as a “global leader in technology investing”, was founded in 1999 and is based in California. It had already made investments in entertainment and had reportedly approached other English and European clubs.

The Financial Times, which first reported the story, says Silver Lake was attracted by the soaring sums paid for football rights by broadcasters and internet groups.

The cash injection will help CFG expand. The Abu Dhabi-based group also has teams in China and the US. It will remain Manchester City’s majority owner.

More details to follow.

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