A football shopping China amounted to $ 2 billion.
A football shopping China amounted to $ 2 billion.
Clubs in Europe are asking whether the new owners have the commitment needed to search for long-term success obscure Chinese investor buys declining football club from Premier League and promised to turn prospects, making it big in China, attracted leading Chinese players and concluded lucrative sponsorship deals, thanks to their connections. But reign in "Birmingham City" Carson Young, former owner of a hairdressing salon in 2009 who became the first Chinese owner of an elite English team ended ingloriously. The team relegated to the second tier of English football, Young was jailed in Hong Kong money laundering, and in 2014 the club still remains little known in China.
Chinese tycoons who have invested over 2 billion. US dollars. e. in European football clubs since the beginning of last year - as well as the fans that support these teams - hope that this time will be different. Aspire to fulfill the ambitions of the President Xi Jinping to transform China into a football power and supported by the available funding for the acquisition of foreign assets, Chinese entrepreneurs embarked on an unprecedented scale shopping of European clubs.
"China is the biggest consumer market in the world. They seek to exploit the potential of European brands and bring home the relevant expertise in the management of football clubs," said Steve Horowitz, a partner at Inner Circle Sports, a boutique consulting firm based in the US and worked on several transactions related to European football. Chinese groups have already acquired or invested in famous teams, including Italian "AC Milan" and "Inter" English "Manchester City" and "Aston Villa" and a number of the smaller teams in Europe. Many clubs, including the "Liverpool" and "Hull" are under consideration by Chinese investors.
Some buyers are groups with good political connections and financial potential, such as Dalian Wanda, Fosun International and China Media Capital. Others are little known even in China, including the new owner of "Aston Villa" Tony Ksya who runs losing manufacturing company for food additives, and Lai Guochuan (pictured), who this month became 'West Bromwich Albion' this month for the amount of 150-200 million pounds, and before that has built a company that describes itself as "IBM landscaping of the garden."
Competition in the Premier League and other top leagues at the moment is more fierce than ever and fans and football executives questioned whether these newly arrived Chinese owners have a personal and financial commitment needed to battle for long-term success, or Chinese football dream d n it will become a nightmare for Europe. Investment bankers argue that there is a big difference between investors 'first division' as Wanda and Fosun, which have deep pockets and a broader perspective for the development of their sports and media enterprises and those of "second division" that can offer less synergies and whose finances are more difficult traceable.
Chinese investors the highest level see an opportunity to build integrated sports businesses that can satiate hunger for entertainment of the second largest economy in the world, in addition to satisfying the whims of Mr. my. Last year, Wanda acquired 20% stake in Spanish "Atletico Madrid" for 52 million. Dollars, and also purchased the Swiss Agency for sports rights Infront Media, in addition to ongoing investments in the industries of film and theme parks.
China Media Capital, which last year acquired a 13% stake in the parent company of "Manchester City" for 400 mln. USD after visiting the club's own Mr. His purchase also broadcast rights for the Chinese Super League and create a joint film venture with Warner Brothers, in addition to their other media businesses. The company Everbright you that contact with "Liverpool" on any investment previously acquired joint control of MP & Silva, another group for sports rights. But Alexander Jarvis, whose company Blackbridge Cross Borders was a consultant on several football deals with Chinese investors said that many of the smaller Chinese companies seem to act impulsively, even though "they have no experience with football."
"In football you meet guys who would sell his grandmother to make a deal, so there is a risk clubs and Chinese investors remain deceived," he added. Consultant, worked on the sale of "West Bromwich Albion" he says dozen Chinese investors are interested in the club, but only four of them had the financial resources and good enough justification to proceed with the deal. "It is very difficult to assess the quality of potential buyers, unless you have a direct local knowledge of China," he says.
According to Feng Tao, CEO of Shankai, a Chinese company for sports marketing, some entrepreneurs believe they can realize quick profits by buying European clubs in not so good condition, but a large number of fans, stand them up and ultimately benefit of their higher score. The Premier League is regarded as the Holy Grail for investors. It has the highest revenue of any football club competition in the world, 17 of 20 teams generated operating profit on the back of rapidly rising prices for television rights.
But for the new Chinese owners playing in the second level of English clubs "Aston Villa", "Birmingham" and "Wolves" will not be easy to climb to the top division. Mr. Jarvis says that for this purpose they will have to invest significantly in players and coaches while manage the expectations of the fans and try to raise revenues to cover the cost of financing. This, he said, an exercise similar to the "monkey dancing on a razor blade."
Keith Uaynes, recently appointed CEO of "Aston Villa" recognizes that the entry team in the Premier League "will no doubt is one of the worst football challenges." He added that the owner, Mr. Sia "fully understands this," while on the club's website is made slightly quixotic statement that "its long-term goal is to make Aston Villa the greatest club in the world." Like other representatives of the new wave of Chinese football tycoons, Mr. Uaynes claimed that thanks to links to Mr Sia "Aston Villa" can get access to the best emerging Chinese players as well as to take advantage of trade opportunities for China. "What we're insiders gives us a great advantage," he says.
But according to Mark Dreyer, an industry expert and host of a blog called China Sports Insider, "the idea that clubs will be big in China, simply because they have a Chinese owner, is nonsense." "Every club in the big leagues is trying to appeal to Chinese audiences through television, social media and pre-season tours. Some of these purchases will end in tears," he added.