Billionaires Play Ball

After snatching up castles, ports, mines and vehicle manufacturing enterprises overseas, Chinese billionaires have set their eyes on soccer clubs. Wanda Group acquired a 20 percent stake in Spanish soccer club Atlético de Madrid for nearly 45 million (US$50.3m) euros in 2015 and Suning Group secured a 70 percent stake of FC Internazionale Milano with a 270 million euro (US$301.5m) purchase in 2016. Since 2014, Chinese enterprises have acquired stakes in at least 15 soccer clubs overseas, broadening the channels of their offshore investments and boosting the soccer industry at home. Analysts say the national soccer reform plan released by the State Council in February 2015, coupled with a depression in the prices of soccer clubs overseas, has created a global buying spree for Chinese enterprises. However, challenges abound, and it remains difficult to squeeze returns out of a difficult soccer market where glamor often means more than value.