A Shanghai City FC football club could be established sooner than later after two Chinese-based companies invested a reported US$400 million in City Football Group which owns Manchester City FC, New York City FC, and Melbourne City FC.

One of the companies, China Media Capital (CMC) describes itself as China’s leading media, entertainment, sports and Internet dedicated investment and operating company while the other, CITIC Capital is an investment management and advisory firm.

The investment is for a 13 per cent in the City Football Group which the companies have valued at US$3 billion.

The agreement has come after more than six months of negotiations with the capital from the acquisition to be used by the City Football Group to fund its growth in China and its international expansion. And this could very quickly lead to the addition of more clubs to its portfolio with the latest acquisition Melbourne City FC in Australia proving to be a big success.

While the agreement remains subject to regulatory approval, CMC and CITIC Capital said in a statement that “representatives and CFG executives have already been working together, along with third parties, to identify and implement China-based initiatives for the CFG portfolio of clubs and companies”.

CMC already has a strong footing in football in China as the owner of exclusive media rights to the Chinese Super League (CSL) and the Chinese Football Association (CFA).

The new deal with City Football Group will see new shares added to the company in addition to the ones held by the Abu Dhabi United Group, Sheikh Mansour’s investment vehicle that prior to Tuesday’s announcement was the sole shareholder of CFG.

Following the agreement, CMC chairman Ruigang Li will sit on the City Football Group Holding Company Board, which will now include seven members.