Buying UK soccer team is 'business deal, not personal indulgence'
The Chinese businessman who bought the British soccer team Aston Villa said Thursday that his company has much bigger, international goals in many sectors, including sports, entertainment and logistics.
Xia Jiantong, chairman of the Recon Group, said more plans for acquisition deals around the world are in the works.
"We have a global plan for both Aston Villa and our other businesses in the next eight to 10 years," Xia told the Global Times in an exclusive interview.
Aston Villa has a history of more than a century, but it has recently been relegated from the English Premier League. Xia is planning to bring in more investment and make management changes while maintaining the team's traditions.
"This is a team that has a long history and many traditions, but it has been declining in recent years due to mismanagement," said Xia. "But it has great potential both in the sports and business segments, and that's why we were interested in the team."
He said he will put more money into the team and change the management team to be more efficient and bring Aston Villa back into the Premier League. But he declined to disclose further details because the deal has not been finalized.
Xia, a Harvard graduate and a soccer fan, is also planning bigger deals.
His company Recon Group, which is in a wide range of businesses including smart urban planning, healthcare and agriculture, is also looking to buy a team in the US and help establish a soccer league in India.
His company is also in talks for an acquisition deals with a leading global logistics company, according to Xia. Details of those plans are still under development, he said.
Xia, who was relatively unknown even in China last week, made the headlines when British media reported that current owner Randy Lerner had agreed to sell the Aston Villa Football Club for 65 million pounds ($95.5 million) to the Recon Group.
This deal is great for both Recon and Aston Villa, Zhang Jiayuan, an analyst with China Investment Consulting Co, told the Global Times on Thursday.
Xia's investment in the club will improve the team's competitiveness, according to Zhang. In return, the acquisition may yield publicity for Recon and enhance its popularity among local citizens, Zhang said.
Analysts said that's why in recent years Chinese business owners have shown great interest in buying European soccer clubs.
Suning Commerce Group, one of China's largest retailers and the owner of Jiangsu Suning Football Club, reportedly went to visit AC Milan in April. The company has discussed potential capital investment with the club, according to domestic media reports in April, citing Robert Faulkner, AC Milan's chief spokesman.
Dalian Wanda Group, owned by Chinese business guru Wang Jianlin, in March 2015 bought 20 percent of Atletico Madrid Football Club's share for 45 million euros ($50.3 million), according to the information on the club's official website clubbatleticodemadris.com.
China Media Capital, a Shanghai-based financial group, bought a 13 percent stake for 265 million pounds in the City Football Group, which owns Manchester City, The Telegraph reported last week.
It's part of these companies' strategy to raise their profiles while nurturing Chinese soccer talent, Ji Ning, a sports marketing expert and CEO of Beijing-based Vning Cultural Media Co, told the Global Times on Thursday.
Zhang agreed, saying that Chinese companies buying soccer clubs in Europe helps the upgrading and reform of the domestic soccer industry and brings excellent soccer players and traditions into China.
But in Xia's case, it's more than that. He said the team itself could be profitable if properly managed.
"We believe sports teams can make profit and there are examples of that in the English Premier League already, that's why we bought [Aston Villa] - for its business potential, not as a personal indulgence."
But if there's any personal motive, it's his love for the game of soccer and a loss of confidence in the Chinese soccer team, Xia said, noting with experience gained from deals such as that for Aston Villa, he hopes to help the development of the soccer industry in China.
"I guess that's the only personal sentiment in this deal, if there is one," Xia said.
