CHINESE SAINTS
Family in £210m St Mary’s takeover
AChinese businessman has become the majority owner of southampton, in a £210million deal which the club hope will cement their status in the Premier League’s top 10.
The conclusion of Gao Jisheng’s challenging 12-month attempt to buy an 80 per cent share of the club will bring his daughter and only child, nelly Gao, into play as a major figure in the st Mary’s setup. Mrs Gao has formed a strong relationship with southampton owner Katharina Liebherr during sales negotiations, and it is thought that she will join the southampton board and become the key Chinese representative.
Gao’s attempts to buy the club through his company, Lander sports Development, had stalled, with the obstacle being the problem many Chinese companies are facing in getting the country’s authorities to allow the transfer of funds overseas.
But the Premier League were told four months ago that the transaction was being funded out of hong Kong, the autonomous territory where Chinese businesses are finding such deals easier to conclude.
The switch triggered fresh Premier League investigations into the source of the funding, which were concluded in June. Liebherr revealed in a letter to fans yesterday that work to bring in a new financial partner was now over.
Liebherr said the deal was with the ‘Gao family’, with the Lander sports Development company not mentioned in her statement. But having concluded due diligence investigations on a greater scale than any ever undertaken before, the Premier League is satisfied that the takeover complies with its due diligence tests.
Liebherr said this was ‘the start of a new and exciting chapter’ for the club. ‘Mr Jisheng Gao and his daughter, Mrs nelly Gao, with whom i have built a close relationship, share our values and ambitions,’ she said. ‘As a team, we will strive to build upon the strong foundation that is in place towards sustainable long-term success.’
The deal takes the number of clubs with a Chinese stake to 28. six British clubs are already Chinese- owned: West Bromwich Albion, Birmingham City, Aston Villa, Wolves, Reading and northampton — with Manchester City 13 per cent owned by Chinese and another British deal expected next month.
The most successful Chinese investors have been those like West Brom owner Guochuan Lai, who have not needed to borrow heavily to fund their acquisition of a club and who have kept things ticking along without major upheaval.
The low-key nature of the Liebherr announcement — with the deal being described as a ‘partnership’ rather than the acquisition which it is — suggests that Jisheng will maintain continuity on the south coast and will not seek a high profile. Liebherr stressed that she, Gao and his daughter had ‘full trust’ in chairman Ralph Krueger and his management team.
Gao said he was ‘honoured and humbled to become a partner’ at southampton.
new Chinese ownership could strengthen southampton’s resolve to hold on to central defender Virgil van Dijk, who submitted a transfer request a week ago.
Alexander Jarvis, whose company Blackbridge Cross Borders, has advised on several football deals involving Chinese investors, said China was ‘about to eclipse the UsA on football club ownership in europe’. he said: ‘i’m convinced we are about to see a new wave of Chinese acquisitions.’
Liebherr is thought to want to keep some of her shares to maintain continuity, before selling up completely if satisfied that additional investment will come from the Chinese. she feels that the club needs more investment to maintain a top-10 position.