CHINESE TAKEAWAY
An A-Z of mainland and HK investment in European football
Chinese investment into European football clubs has increased rapidly over recent months and increasingly bigger names are being targeted. Liverpool are the latest team to be linked to a takeover, with SinoFortone, an investment group joint venture between Liaoning-based Fortone Group and Hong Kong-based Sinolinks Holdings Group, rumored to be interested.
Liverpool owners Fenway Sports Group have denied an approach but the reports in this case are believable on two counts – SinoFortone have invested heavily in the UK recently and it comes just days after another sleeping giant’s takeover by Chinese investors.
It’s not just Liverpool: Clubs all over the continent from AC Milan to Ajax are being linked with Chinese takeovers and it’s a case of when rather than if the next deal goes through. But what does it mean for the teams involved? Here’s a look at European football investment from Hong Kong and the mainland so far and how the sides have fared.
Aston Villa
Beijing-based billionaire businessman Tony Xia’s Recon Group took ownership of Aston Villa on Tuesday after passing the Football League’s fit and proper persons test, which allowed him to complete the 76 million pound ($107 million) purchase of the former European Cup winners. With that recently relegated Villa became the first European club to be wholly owned by Chinese mainland investors. Xia immediately promised his goal was to make the club the biggest in the world. First of all they have to gain promotion from the Championship but he has appointed European Cup-winning manager Roberto di Matteo to do that and given him funds to spend. The ambitious Xia might not be done yet, having since told the Daily Mail that he already has an eye on a club in Spain.
Atletico Madrid
Wang Jianlin’s Dalian Wanda Group bought a 20 percent stake in Atletico Madrid in March 2015 for a reported bargain price of $54 million, while they also promised another $18 million investment in training facilities. So far it looks a shrewd investment. Atletico finished third in La Liga last season and were runners-up to city rivals Real Madrid in the Champions League final for the second time in three years. The club has a lot of potential financially, from shirt sponsorship to stadium naming rights, but is still consistently punching above its weight with Spain’s big two.
Birmingham City
Hong Kong barber-turned billionaire trader Carson Yeung bought a 29.9 percent stake of the club in July 2007 through his Hong Kong-listed Grandtop International Holdings before a protracted takeover that was finally completed in October 2009 for 81 million pounds ($115 million). Yeung’s arrest in Hong Kong on money laundering charges in 2011 coincided with the club winning the League Cup before being relegated from the Premier League. He was found guilty in 2014 and forced to step down from his role as chairman of club and holding company, Birmingham International Holdings Limited. The club has been open to offers since 2012 and Hong Kong-based Trillion Trophy Asia is in advanced talks to takeover, with reports in recent weeks valuing the club at 37 million pounds. It’s been as messy on the pitch as it has off with the club flirting with relegation to the English third tier in recent years.
Espanyol
The Hong Kong arm of the Guangdong-based Rastar Group, a giant in the toy car industry, purchased a controlling interest in Barcelona-based La Liga side Espanyol at the turn of the year. Their 54 percent of shares reportedly cost 60 million euros ($68 million), with Yutang Sports reporting back in March that Rastar’s attempt to increase their stake to 90 percent will be decided at an EGM at the end of this month. Billionaire chairman Chan Yansheng, who has claimed to have been an Espanyol supporter for 20 years, has stated that he hopes that the club will be competing in the Champions League within the next three years.
Inter Milan
The Milan side have historically been the bestsupported club in China thanks to the screening of Serie A in the 1980s and the club have similarly long been a target for Chinese investment. A Chinese-backed bid for a minority interest in the club came to naught back in 2012, while the Chinese National Chemical Corporation agreed a $7 billion deal for Italian tire giants and Inter part-owners Pirelli last year. However, Nanjing-based retail giant Suning has since blown both out of the water by acquiring a 68.5 percent stake in the club for 270 million euros earlier this month. The Nerazzurri are seen as sleeping giants and their ambitious new owners will want to see the club improve on their 13 points off the Champions League spots last season.
Manchester City
In December, China Media Capital and CITIC Capital paid 265 million pounds in return for a 13 percent in City Football, owners of Manchester City, Melbourne City and New York City. The move valued City’s owning group at more than 2 billion pounds, confirming the club as part of the European football elite. That’s expected to be matched on the pitch next season under new coach Pep Guardiola after a disappointing campaign last time out.
Slavia Prague
After being in dire financial straits going into the 2015-16 season, Slavia Prague were rescued by Chinese investment company CEFC Energy who bought 59.97 percent of the Czech club in September, as part of wider investment into the country. CEFC then bought a 70 percent stake in the club’s Eden Arena stadium in April this year. Slavia finished fifth last season, qualifying for the early rounds of the Europa League, a huge improvement from their relegation battle the season before.
Sochaux
French Ligue 2 side FC Sochaux-Montbeliard were bought by the Hong Kong-listed Ledus, a subsidiary of Tech Pro, for 7 million euros in the summer of 2015. The club, which was founded by local car manufacturer Peugeot for its workers, became the first in Europe to be wholly owned by a Chinese investor. Last season they finished 15th in France’s second tier and will soon hope to return to the top flight, where they spent a record 66 seasons before they were relegated in 2014.