Chinese magnates’ aggressive expansion into European soccer world

China has an ambitious plan to turn itself into a soccer powerhouse, marked by the release of a 50-point guideline last year. Within this new environment, Chinese magnates have created a soccer spree through their frequent investments in European soccer clubs or agencies.

In response, European sports rights holders have begun to receive considerable investments from China.

As revealed in an earlier report by Reuters, four Chinese buyers, including the model car maker Rastar Group, are eyeing the purchase of the Stellar Group. Media speculation has valued the UK-based soccer agency at around 900 million yuan ($138 million).

As a trustworthy source told Yutang, Jonathan Barnett, chairman and founder of the Stellar Group, has been in China and has some “big plans.” It is said that Mr. Barnett has plans on selling “the best players in the world” and to work with leading sports companies in China.

As far as we know, Barnett and his delegation’s “China Tour” covers the likes of Guangzhou, Nanjing, Shanghai and Beijing. He even watched a Chinese Super League match between Guangzhou Evergrande and Shanghai SIPG.

After a week of intense negotiations in China, “multiple parties still remain locked in talks for what is considered a highly prized asset,” the source revealed. In addition, 2 more investors have now entered negotiations, looking to participate in the rumoured acquisition of the Rastar Group.

It’s too early to predict what will happen if the deal is finalized. However, we can reasonably conclude that foreign sports agencies have been showing increasing interest in Chinese buyers.

This week, Chinese businessman Tony Xia is expected to arrive in England for to finalise his takeover bid of English football club Aston Villa, according to a recent Birmingham Mail report.

As the owner of the Recon Group, Xia brought the recently relegated club from American Randy Lerner. This deal is reported to be worth £60m to £70m. He has announced his ambitious plan to help the club gain promotion back to the English top flight. In the long run, his dream is that Aston Villa will become “the most famous football club in China with a huge fan base.”

Xia told media that this move is a pure business deal, which suggests the Chinese government has not been involved. But obviously, Chinese investors’ extending reach into European soccer will contribute to the realization of President Xi Jinping’s national soccer dream.

In the past year, China has become the nouveau riche of the soccer world. However, westerners are impressed more by Chinese buyers’ luxurious deals, rather than Chinese players’ outstanding performance on the pitch. But the good news is, buying a foreign club can be a positive move if it helps to ensure a boom in Chinese soccer. 

However, China needs to create more strong soccer clubs, which is quite a difficult challenge. Fortunately, the country is approaching its great soccer dream, step by step. Recently, Chinese buyers have made several headlines. For example, Beijing Baofeng and Everbright Securities have acquired a majority stake in MP & Silva, an Italian-owned media rights agency. Another example is Rastar Group, which is reportedly planning to make a further €39 million investment in Espanyol. Additionally, China-based Desports is set to pay €37 million for a 100% stake in the Spanish club Granada CF.

Thanks to the heavy investment in sports agencies, soccer clubs and transfer windows, Chinese investors are learning how to do business with international sports professionals. As a result, they may introduce advanced management models, brilliant coaches and outstanding players to China. All of the above elements will play a significant part in realizing China’s soccer dream.

Proofread by Sean O Diobhilin