Huge sums poured into overseas teams could benefit domestic game

China's ambitious investment in professional soccer overseas is likely to pay off at home with a boost in the domestic game, thanks to expertise gained from being close to the action in well-established foreign clubs, industry insiders said.

They were responding to critics who said soccer-obsessed Chinese tycoons have been scrambling to buy stakes in European clubs. Many observers have asked whether the fantastic sums of money involved should have been invested in soccer within China.

But James Johnson, head of FIFA's Professional Football Department, told China Daily on Thursday that China will end up reaping the benefit of the overseas investments.

"I think it's a double-edged sword," Johnson said. "It makes sense on one hand that you would hope the investment remains in China, but on the other hand, when you have invested in these clubs in Europe, you gain expertise and knowledge while developing networks that you couldn't develop if you had not invested."

He spoke in Beijing last week as part of a delegation from the game's world governing body attending the 2016 Professional Football Law and Governance Conference. The gathering attracted league executives and legal advisers from around the world.

The event was hosted by Beijing-based Sodasoccer, a company providing data analysis for the professional soccer industry.

Han Qingshan, Sodasoccer's CEO, said that becoming a shareholder in European clubs offers direct access and the chance to learn from professionals at the highest level.

"It helps build bridges between China and Europe in club operations, youth training and brand marketing and provides a chance to bring the know-how home from overseas," he said.

Recently, investments by Chinese in soccer overseas have surged.

Chinese businessman Xia Jiantong, who owns the Recon Group and describes himself as a fan of many years, purchased 100 percent of English club Aston Villa from its former owner, Randy Lerner of the United States, for a reported 70 million pounds ($102 million) on May 18.

The purchase of Villa followed the $400 million investment by a Chinese consortium led by Shanghai-based China Media Capital Holdings that gave it a 13 percent stake in City Football Group, which owns Manchester City FC of the English Premier League.

An unidentified Chinese consortium is close to acquiring at least 70 percent of renowned Italian Serie A giant AC Milan, with negotiations ongoing with the club's current owner, former Italian prime minister Silvio Berlusconi, according to a person familiar with the negotiations.

Despite assurances that such investments will end up benefiting the Chinese domestic game, some pundits are not convinced.

"If you look at it, the first reason why these wealthy investors are doing this is for business reasons," said David Frommer, senior strategic adviser at the European Club Association.

"They are buying for themselves, to build their prestige and because they want to make money out of it. I don't see how much it will benefit Chinese football. I am not sure what the benefit will be."

When you have invested in these clubs in Europe, you gain expertise and knowledge while developing networks."

James Johnson, head of FIFA's Professional Football Department

sunxiaochen@chinadaily.com.cn

(China Daily USA 05/30/2016 page4)