Chinese investment in football is known worldwide for the huge salaries and offers made to bring well recognised players to their local leagues, and also of its Government’s ambitious project to make Chinese football a serious competitor for the World Cup.
In recent times, Chinese investment in clubs overseas is becoming the norm, especially in Europe. UEFA’s financial report estimates that China is the biggest spender on foreign clubs. Indeed, among the world’s three principal leagues there are clubs benefiting from Chinese investment.
The new Italian “Chinese Derby”
The major Milan clubs, AC Milan and Internazionale di Milano, are now owned by the Chinese, while the well known “Derby della Madonnina” is now called by the press “The Chinese Derby.”
In June 2016, it was made official that Nanjing born Zhang Jindong, through his company, the Suning Group, bought 70 percent of Inter Milan for an estimated 270 million Euros. The Group also owns the Chinese Super League club Jiangsu Suning. When the acquisition was officially announced in Nanjing, Zhang said, “Acquiring Inter of Milan is part of Suning’s strategy to become a leader in the sports industry in the coming 5 years. We will make Inter more internationalised”. Suning also has plans for building a new stadium since the San Siro Stadium belongs the local Milan government.
After 31 years, last April Silvio Berlusconi sold AC Milan. Rossoneri Sport Investment Lux (RSIL) invested around 800 million Euros for the acquisition of 99.93 percent of the club, including 290 million of debt. RSIL is a Group formed by Haixia Capital, a state-owned company, and businessman Li Yonghong. Part of their plan is to enter the stock market in Hong Kong. The agreement between the former Italian Prime Minister and Chinese group encountered many difficulties during completion and its structure is still not very clear. Besides, last month an investigation by the New York Times exposed possible wrongdoings and fraudulent deals in which Li could have been involved; his father and brother were sentenced to jail for bilking thousands of investors through one of their family companies in Guandong. Thus far, AC Milan has invested over 200 million Euros recruiting players in trying bring the club back to its glory times.
In England
Perhaps the most well-known, Chinese invested club in England is Manchester City (World no. 6 team by revenue), owned by the Emirian Mansour bin Zayed Al Nahyan. Nevertheless, China Media Capital (CMC) has a 13 percent share in the City Football Group, a holding company with investments in Manchester City in England, New York City in USA, Melbourne City in Australia, Yokohama Marinos in Japan and Girona in Spain. For this minority share, CMC paid 380 million Euros in 2015. This was the first Chinese investment in the English Premier League.
The 139-year old club West Bromwich Albion was bought in August 2016 by construction tycoon Lai Guochuan. With his firm, Yunyi Guokai Sports Development, he took an 88 percent stake in this Premier League club for an estimated 230 million Euros. He also plans to build six big football complexes across China in order to develop youth football as a means to expand the West Brom brand name.
The Premier League team, Southampton is also owned by a Chinese magnate; Gao Jisheng. Second tier teams Aston Villa, Birmingham City and Wolverhampton Wanderers are also Chinese-owned, meaning that almost all clubs around the midlands city of Birmingham have beem swallowed up by the Chinese.
In Spain
The Rastar Group, a toy car maker based in Guandong, is now the majority owner of the Catalonia team Espanyol. In 2016, it was reported that the new president Chen Yansheng secured a 54 percent share in ownership of the club after paying 45 million Euros. So far, he has invested more than 150 million Euros. Chen was ranked no. 254 on the 2015 Forbes China Rich List.
The world’s biggest private property developer and largest cinema chain operator, the Wanda Group, invested 45 million Euros in 2015 for the acquisition of 20 percent of the renowned club, Atletico Madrid. The company also spent money on the new Atletico stadium, inaugurated last September, and named “Wanda Metropolitano”. Rumors indicate that Wang Jianlin, one of the richest men in China, plans to own the club outright within the next 5 years.
Not only have the principal leagues in Europe received Chinese investment, other clubs such as Slavia Prague in the Czech Republic and Ado den Haag in Holland are in China’s basket. This demonstrates how big and international the football business is and how the Chinese are willing to become part of it, both for profit and global exposure.
