Future of Sport: A Global Sports Week x Viva Technology Collaboration, Will Open in June 14
12 Jun 2023 14:59
Buoyed by Eastern’s new partnership with Real Madrid, ambitious boss Peter Leung Shou-chi has set a goal few sports clubs in the world can attain – a stock-exchange listing.
Acknowledging the idea would be “unrealistic to some”, Leung said he wanted to set targets outside of winning soccer titles.
But the financial reality is Eastern would first have to break even – the soccer team suffered a multi-million dollar loss last season – then show a positive cash flow of at least HK$20 million in aggregate for two financial years before being able to list. That most basic of GEM listings also requires a market cap of HK$100 million.
A main board listing is even more stringent, with profits of at least HK$50 million in the last three financial years, including at least HK$20 million in the most recent year, plus a market cap of HK$200 million.
Leung admitted the club was losing money but is hoping their joint venture with Spanish giants Real Madrid will signal a change in their fortunes and build a foundation for a future listing.
“We know some people may say this is unrealistic as investment in Hong Kong sports can never make a profit to fulfil listed company requirements,” said Leung. “But it is always important to set a target so we can work towards it and be successful.
“It will never happen if we don’t try and we hope our results in the upcoming season can be the first step towards our goal.
“We are working with Real Madrid in setting up soccer and basketball schools in Hong Kong and that will generate income,” said Leung, who is also in charge of the basketball section. “They are a top brand in both events and should have little problem in making profit.”
Eastern’s basketball team will become the first fully professional team next season with an investment of over HK$10 million.
Although Leung refused to disclose their soccer budget for next season, it is believed they will spend HK$20 million on a 26-strong squad.
Future of Sport: A Global Sports Week x Viva Technology Collaboration, Will Open in June 14
12 Jun 2023 14:59
Related coverage
F.C. Internazionale partners with Le Sports
29 Jan 2016
Weekly Report: CBA and NBA back to screen in style
03 Nov 2015
Wang Jianlin to form a possible partnership with AC Milan
13 Feb 2015
What do we need to develop sports market in China?
16 Nov 2015
United Family Healthcare announced a partnership with Stephon Marbury
19 Jun 2015
More from Yutang Sports
Interview with Thomas Lund: to follow new trends and bring younger generations to the sport
17 Jun 2024
SPORTACCORD 2024 INSIGHTS: Touchdowns, Home Runs and Slam Dunks
12 Jun 2024
Ingmar De Vos elected as the next ASOIF President
10 Apr 2024
SPORTACCORD 2024 INSIGHTS: Major Technology Trends Shaping Sports Sector
03 Jun 2024
Expert insight | New changes on UEFA EUROs: growing maturity of Hisense and other Chinese brands
22 Jul 2024
Yutang Sports
loading...