Real Madrid and Manchester City fight on the pitch every season. Off the pitch, they are the perfect case study for two very different capital models in modern football. We share how this rivalry has become a global private equity benchmark.
From football rivalry to private equity case study
Real Madrid is a member-owned club, now exploring a partial opening to external investors. Manchester City sits inside City Football Group, a multi-club structure backed by Abu Dhabi capital and US private equity firm Silver Lake.
Both clubs are global brands. Real Madrid tops Forbes’ rankings with an estimated value of about $6.75 billion and annual revenue above €1.18 billion. Manchester City is valued around $5.3 billion with revenue near $0.9 billion. For investors, this is not just sport. It is a scalable media, entertainment, data and infrastructure play.
Two ownership models: members vs multi-club platform
Damalion highlights the contrast between the clubs’ ownership models because it shapes how private equity can participate.
Real Madrid remains a “socios” club. More than 90,000 members elect the president and control key decisions. There is no listed equity and no majority shareholder. In 2025, the club started to study a sale of a small stake, around 5%, to gauge market valuation and finance growth.
Manchester City belongs to City Football Group (CFG), created in 2013 as an investment holding company. CFG is majority owned by Abu Dhabi interests and has a significant minority stake held by Silver Lake, a US private equity firm that first invested $500 million in 2019 for a stake a little above 10%, at a $4.8 billion valuation. Silver Lake later increased its share to roughly the mid-teens.
For investors used to buy-out or growth equity strategies, CFG looks like a familiar platform business. Real Madrid looks closer to a strategic asset with political, social and brand constraints.
Why private equity loves elite football assets
We explain why private equity funds, sovereign investors and family offices now compete for exposure to top clubs and leagues.
Several global trends drive this appetite:
- Media and streaming: live sports is one of the last “must-watch” products. Global rights, local packages and direct-to-consumer apps create recurring revenue.
- Data and fan engagement: clubs monetize memberships, e-commerce, OTT platforms, NFTs and in-stadium experiences.
- Real estate and infrastructure: stadiums, training centers, museums, hotels, retail and mixed-use developments generate long-term cash flows.
- Globalization of leagues: the “Big Five” European leagues generated about €20.4 billion in 2023-24, a 750% increase since the late 1990s.
- Deal flow: S&P Global estimates sports services deals reached about $31.6 billion in 2024, almost four times 2023.
In this setting, Real Madrid and Manchester City sit at the top of the pyramid. They are not only sports brands. They are anchor assets for global portfolios.
Real Madrid’s capital strategy: staying member-owned, opening just enough
Damalion explains how Real Madrid tries to balance tradition with access to capital.
The club has three core financial pillars:
- Sporting performance and image rights.
- Commercial and sponsorship deals across Europe, the Americas, Asia and the Middle East.
- Stadium and infrastructure, including the renovated Santiago Bernabéu complex.
In 2024-25, Real Madrid reported revenue of about €1.18-1.19 billion and net profit growth above 50% year-on-year. The club is also the only one worldwide to surpass €1 billion in revenue for more than one season in a row.
Instead of selling control, Real Madrid has used:
- Long-dated financing for the Bernabéu transformation, mixing bank facilities and bonds.
- Commercial partnerships in industries such as airlines, financial services, consumer electronics and betting.
- Participation in league-level negotiations while opting out of the LaLiga–CVC private equity deal of €1.994 billion, which it challenged in court.
Now the club studies a limited external stake, around 5%, that could value the business well above $10 billion if markets apply US franchise multiples. The idea is to keep members in control while using institutional capital for digital, real estate and international growth.
Manchester City and City Football Group: the private equity platform play
We explain why Manchester City looks more like a tech or media group than a traditional club.
City Football Group owns or controls stakes in more than ten clubs on four continents, including Manchester City (England), New York City FC (US), Melbourne City (Australia), Mumbai City (India), Bahia (Brazil) and Girona (Spain).
For private equity, CFG offers:
- Multi-club ownership (MCO): shared scouting, analytics, coaching and medical teams across clubs.
- Centralized commercial operations: aggregated sponsorships, data, merchandising and content production.
- Talent pipeline: signing players early in South America, Asia or Africa and placing them in different leagues as they develop.
By 2023-24, about 41.7% of clubs in Europe’s “Big Five” leagues already belonged to an MCO group, up from 36.7% the year before and from about 40 clubs globally in 2012 to more than 180 in 2023.This shows how quickly the MCO model spreads from England, Spain and Italy to Belgium, France, Brazil and the US.
Silver Lake’s investment in CFG follows a classic growth-equity pattern: minority stake, platform expansion, digitalization and eventual monetization through listing, secondary sales or recapitalization.
Industries surrounding the Real Madrid–Man City battle
Damalion highlights the broader industries that scale around these two brands and attract private equity, venture capital and family offices.
- Media and broadcasting: OTT platforms, regional sports networks, global streaming and highlight rights. Funds in the US, UK and France buy stakes in production companies and data-driven content studios.
- Technology and data: performance analytics, wearables, fan-data platforms and AI-driven scouting tools. German and US software firms partner with clubs to commercialize these tools across leagues.
- Stadium real estate: mixed-use districts with offices, hotels, food courts and entertainment venues. In Spain, CVC’s €1.994 billion LaLiga partnership channels capital into infrastructure. In France, a similar €1.6 billion plan supports Ligue 1.
- Hospitality and tourism: match-day VIP boxes, business lounges, club museums and branded tours link football to the travel and MICE industries in cities such as Madrid, Manchester, Abu Dhabi and New York.
- Consumer brands: sportswear, beverage, personal care and fintech firms use Real Madrid and Manchester City as global marketing platforms in Europe, the Americas, Asia and the Middle East.
Practical case: how a private equity fund enters European football
We explain a simple practical scenario that mirrors current market deals.
Imagine a US private equity fund with €1 billion dedicated to sports. It wants exposure to European football without owning a full club. The fund may:
- Take 8–15% in a league-level media company, similar to CVC’s LaLiga structure or other league vehicles in France and Germany.
- Acquire 10–20% in a multi-club group that already owns teams in England, Spain and Brazil, following the City Football Group model.
- Finance stadium development in Spain, Italy or Portugal through long-dated, asset-backed private debt at yields between 5% and 9%.
- Partner with a technology company in Germany or the Nordics to roll out fan-engagement platforms across several clubs.
In this case, Real Madrid remains a reference point for valuation and brand benchmarking. Manchester City and CFG act as a structural template for platform deals. Investors often compare returns and risk between “single-club icons” and diversified platforms.
Valuation metrics: from EBITDA to strategic premium
Damalion explains how investors price elite football assets using both financial and strategic metrics.
Key indicators include:
- Revenue mix: matchday, broadcasting, commercial and player trading.
- Stabilized EBITDA after normalizing wages and transfer cycles.
- Brand value and audience size in Europe, Asia and the Americas.
- Real estate upside from stadium and surrounding developments.
- League stability and regulatory risk.
Forbes values Real Madrid at $6.75 billion and Manchester City at $5.3 billion. Yet private transactions can imply much higher multiples, especially when long-term media rights, real estate and digital monetization are included. Real Madrid’s internal analysis suggests that a partial stake could value the club between $16 billion and $24 billion using US franchise benchmarks.
By contrast, CFG raised capital at a $4.8 billion group valuation in 2019 and has since scaled its assets and brand footprint, supported by Manchester City’s European trophies.:
Risk factors for investors
We explain the main risks investors must manage when they approach clubs like Real Madrid and Manchester City.
- Sporting volatility: failure to qualify for the Champions League can cut revenue by tens or even hundreds of millions of euros in a single season.
- Regulation and financial fair play: changes in UEFA or national rules impact leverage, related-party deals and spending caps.
- Political and fan pressure: member-owned structures such as Real Madrid face resistance to “financialization”; fans react fast to perceived loss of identity.
- League governance: league-level PE deals can create conflicts with clubs that did not sign, as seen with Real Madrid’s opposition to the LaLiga–CVC agreement.
- Currency and macro risk: revenues in euros, pounds and dollars face FX swings and broader economic cycles.
Country examples: Spain, England, Italy, France and Brazil
Damalion highlights concrete country examples to show how the Real Madrid–Man City duel fits into a wider pattern.
- Spain: CVC’s €1.994 billion deal provided fresh capital to most LaLiga clubs. Real Madrid and Barcelona opted out and pursue their own financing routes, relying on their massive global fan bases.
- England: US investors own clubs such as Manchester United, Liverpool, Chelsea and Aston Villa. Private equity funds use minority stakes, stadium financing and data-analytics companies to gain exposure.
- Italy: AC Milan’s sale to RedBird Capital, a US private equity sponsor, showed that Italian clubs can be turned into modern media and real estate platforms when governance improves.
- France: Ligue 1’s partnership with CVC illustrates how league-level vehicles can recapitalize clubs, upgrade infrastructure and expand international broadcasting.
- Brazil: recent legal changes allow clubs to convert to “SAF” company status, making them investable by domestic and international private equity. Multi-club groups from Europe already own stakes in Brazilian clubs that feed talent to Europe.
What this means for family offices, entrepreneurs and institutional investors
We explain how different investor profiles can approach the “Real Madrid vs Man City” private equity battle with discipline.
- Family offices: often prefer minority stakes in clubs, stadiums, hospitality projects or club-adjacent businesses such as academies, data, ticketing or hospitality. These assets combine passion and long-term capital preservation.
- Entrepreneurs: may partner with funds to provide operating expertise in technology, marketing, e-commerce or media around clubs and leagues.
- Private equity and pension funds: target scalable platforms, league-level vehicles and infrastructure with predictable cash flows and exit options.
- Venture capital: focuses on fan-tech, streaming, AI scouting, fantasy sports, Web3 and monetization tools that can plug into large brands like Real Madrid and Manchester City.
For many investors, elite clubs serve as anchor relationships. Deals then follow into training centers, data platforms, regional streaming, stadium hotels and naming-rights projects.
Key takeaways: Real Madrid vs Man City as an investment framework
Damalion highlights three simple messages that investors can use as a checklist.
- Real Madrid shows how a member-owned, globally dominant brand can open a narrow window to outside investors while keeping political and emotional control.
- Manchester City and City Football Group show how multi-club platforms and private equity capital create industrial-scale football businesses with global reach.
- Both models sit inside a wider ecosystem of media, real estate, data and technology where private equity, family offices and entrepreneurs cooperate and compete.
For investors, the real battle is not the score on match day. It is the ability to structure capital in a way that respects fans, delivers returns and supports long-term growth across leagues and continents.
Damalion supports entrepreneurs, investors and family offices who wish to structure compliant investment platforms in Europe and beyond, including holding companies, fund vehicles and club-adjacent investments. Our role is to align strategy, regulation, tax and banking so that capital can enter the sports ecosystem in a sustainable way. Please contact your Damalion expert now.
What makes Real Madrid vs Manchester City a “private equity battle” off the pitch?
It is a “battle” because both clubs sit at the top of global valuations and use very different capital models. Real Madrid remains member-owned and is exploring a small external stake, while Manchester City belongs to City Football Group, which already includes a significant private equity investor, Silver Lake. Investors use these two cases to compare single-club icons with multi-club platforms.
How is Real Madrid valued compared to Manchester City from an investor’s view?
Forbes values Real Madrid around $6.75 billion and Manchester City around $5.3 billion. Real Madrid also generates more than €1.18 billion in annual revenue, while Manchester City’s reported revenue is around $0.9 billion. Private transactions, league-level deals and stadium projects can push implied valuations even higher.
Why has private equity invested in Manchester City’s ownership structure?
Private equity invested at the level of City Football Group, Manchester City’s parent company. Silver Lake acquired a minority stake for about $500 million at a $4.8 billion valuation. The target was not only Manchester City, but a global platform with clubs in Europe, the Americas and Asia, plus media rights, data, commercial and real estate upside.
Is Real Madrid also opening the door to private equity investors?
Real Madrid has not sold a stake yet, but it is evaluating a limited sale, around 5% of the club’s equity, to external investors. The goal is to measure market valuation, fund digital projects and support the Santiago Bernabéu development while keeping members in control. Any deal structure must respect the “socios” governance model and Spanish regulations.
Which industries benefit most from the Real Madrid vs Man City rivalry?
The rivalry drives growth across media and broadcasting, streaming platforms, sports tech, data analytics, fan engagement, stadium real estate, tourism, hospitality and consumer brands. Airlines, banks, betting companies, fintechs and personal-care brands all use the clubs to reach global audiences and justify large sponsorship budgets.
How does multi-club ownership change the private equity approach to football?
Multi-club ownership allows investors to treat football like a platform business. Groups such as City Football Group share scouting, analytics, medical, coaching and commercial teams across many clubs. This reduces cost per club, improves data quality and creates more exit options for players and assets. It also raises questions about competitive balance and regulation.
Why did Real Madrid oppose the LaLiga–CVC private equity deal?
Real Madrid argued that the long-term CVC structure, which granted the fund a share in central media rights, reduced strategic flexibility and undervalued future revenues. The club preferred to finance its stadium and growth projects directly rather than tying a portion of media income to a single investor for decades.
What metrics do investors look at when analysing Real Madrid or Manchester City?
Investors review revenue by segment, normalized EBITDA, wage ratios, squad value, brand value, digital reach, stadium economics, pipeline of young talent, regulatory risk and the quality of management. They also assess macro exposure by country, currency risk and the potential to cross-sell products across multiple territories.
Are football investments mainly equity or can they also be private debt?
There are both equity and private debt routes. Some funds buy minority or majority equity stakes in clubs, leagues or holding companies. Others provide long-dated private debt to finance stadiums, training centers or urban redevelopment projects around arenas, often secured against future matchday and media revenues.
How do Real Madrid and Manchester City influence valuations in other leagues?
They function as benchmarks. When a mid-table club in Italy, France or Brazil negotiates with investors, both sides look at valuation multiples applied to Real Madrid and Manchester City and then discount for league risk, brand size and stadium quality. This helps set ranges for minority stakes, league projects or multi-club acquisitions.
What role do US investors play in the Real Madrid vs Man City private equity story?
US investors are deeply involved in the wider ecosystem. Private equity funds like Silver Lake back platforms such as City Football Group. Other US funds hold stakes in leagues, media companies and clubs in England, Italy and France. Their experience with US major leagues helps set new standards for governance, data use and commercial structures.
Can family offices realistically invest alongside large private equity funds in football?
Yes. Family offices often co-invest in minority club stakes, stadium-adjacent real estate, hospitality assets or technology companies linked to clubs. They usually bring long-term capital and local knowledge. Private equity brings deal structuring, governance and scale. The Real Madrid and Manchester City ecosystems offer multiple co-investment entry points.
How important is stadium real estate in the private equity battle between the clubs?
Stadium real estate is central. Real Madrid’s transformed Santiago Bernabéu is designed as a year-round entertainment, retail and hospitality hub. Manchester City’s Etihad Campus combines the stadium with training facilities, commercial space and event infrastructure. For investors, these assets provide more predictable cash flows than unpredictable match results.
Do private equity investors prefer league-level deals or single-club deals?
Many funds prefer league-level deals because they reduce relegation risk and diversify exposure across many clubs. Structures such as LaLiga–CVC or Ligue 1’s partnerships aggregate media rights and sponsorship contracts. Single-club deals, like investments in Real Madrid or Manchester City’s ecosystem, can still be attractive but often carry higher volatility.
How does regulation affect private equity strategies in European football?
Regulation covers foreign ownership, financial fair play, related-party transactions, multi-club ownership rules and media rights. Countries such as Spain, Italy, France, England and Brazil each have distinct legal frameworks. Investors must adapt structures to each jurisdiction and monitor ongoing reforms at UEFA and national-league level.
What are the main risks for private equity backing clubs like Manchester City?
Key risks include sporting downturns, stricter financial fair-play regimes, geopolitical tension affecting state-backed owners, reputational issues and fan backlash to ticket increases or commercialization. Multi-club groups must also manage conflicts of interest when clubs meet in European competitions.
How can entrepreneurs participate in the Real Madrid–Man City private equity ecosystem?
Entrepreneurs build and scale technologies or services around the clubs. Examples include fan-engagement platforms, ticketing solutions, data-analytics services, hospitality concepts, merchandising logistics and language-specific media content. These businesses can serve many clubs while branding themselves around flagship names.
Are valuations in elite football sustainable in the long term?
Valuations depend on media rights growth, global fan demand and the ability to monetize digital engagement. As long as football remains premium live content and emerging markets join the global fan base, demand for top-tier assets should remain strong. However, regulators, fans and economic cycles can all slow growth or compress multiples.
How does Damalion assist investors interested in this kind of sports exposure?
Damalion accredited experts help investors design compliant structures for sports-related exposure. That includes holding companies, fund vehicles, SPVs for stadium and real estate projects, and club-adjacent investments such as technology or media ventures. We focus on legal, tax and banking coordination so that capital can flow efficiently between jurisdictions.
What should investors watch next in the Real Madrid vs Man City private equity battle?
Investors should watch whether Real Madrid completes a first minority stake sale, how City Football Group evolves its portfolio, new league-level PE deals in Europe or South America, and regulatory changes around multi-club ownership. These moves will shape valuations and deal structures across the entire football investment landscape.
