Chinese Government Close to Liverpool Purchase: What's Your Verdict?
What would you say if the future owner of Liverpool FC was the Chinese Government? Sounds too unbelievable to be true, but the British press is reporting that The Reds could be bought by one of the original reds, the Chinese Government, within the next month.
The Chinese Government’s overseas investing arm is China Investment Corporation (CIC), which is funding the bid fronted by Chinese sports tycoon Kenny Huang. The CIC is one of the largest sovereign wealth funds in the world and has assets of $332 billion as of the end of 2009. A sovereign wealth fund is a state-owned investment fund that invests globally.
The prospect of the Chinese Government becoming the owner of one of the top clubs in the Premier League raises many questions. The first is how the Premier League’s fit and proper person test will consider a Communist government owning an English club. Should a country who has a long list of human rights offenses be considered a “fit and proper person”?
The second is to consider what the Chinese Government’s goals are with Liverpool FC. At the top of their list will be the revenue opportunity. Despite the awful financial mess the club is in, Liverpool is one of the biggest clubs in the world with a massive fanbase in Asia. And the Chinese Government has an opportunity to pay off the club’s debt, to build the new Liverpool stadium at Stanley Park and to invest in the transfer market. But beyond that, what are the Chinese Government’s goals? Are they purely investment, or do they have other ideas in mind such as PR opportunities?
There are two other major bidders other than the Chinese Government who are trying to acquire Liverpool FC, so there is hope for those soccer fans who may not be too comfortable with the Chinese Government’s involvement. The other bidders are believed to be a wealthy Kuwaiti family and an American private-equity group.
It’s believed that the CIC is in pole position to acquire Liverpool FC. But as we’ve seen in the last few years, the acquisition of a football club is often a long and complicated exercise with plenty of twists and turns. Still, you have to wonder what the public’s reaction will be regarding the prospect of the Chinese Government owning one of the crown jewels of English football.
What do you think? Should the Chinese Government be allowed to acquire Liverpool through their sovereign wealth fund? If you’re a Liverpool supporter, would CIC acquiring Liverpool affect the way you support your club or not? Share your opinion in the comments section below.
49 Responses to Chinese Government Close to Liverpool Purchase: What's Your Verdict?
I couldnt care less who buys us as long as they stick to their promises and give us some money to win the league and the be all and end all,,,get rid of these yanks,oh and we dont want their mate this syrian fella either,so yes,I want Chairman Mao
I agree. It´s a shame about human rights, but we can´t get involved in politic.
Having lived in Hong Kong / China for 20-odd years, and working with companies that having dealings with the PRC Government – no problem at all.
To describe China as a ‘Communist Government’ may be technically right, but it creates an image far from the reality of life and business in China. Yes, there are human rights problems, but China has moved forward at at a staggering pace – and having been party to numerous invasions over recent years who are we in Britain to moralise?
Once things for sure – you could trust the Chinese Government far more than a bunch of Americans!
Wow, trusting the Chinese over your allies the US? You’re a joke.
The same Chinese that back North Korea and fund the Darfur atrocities. Come on man.
The West has supported (or is currently supporting) a number of less-than-upright regimes too. Indonesia under Suharto, Chile under Pinochet, Iraq under Hussein, Saudi Arabia under the House of Saud, Israel under whoever’s in charge….
Pot, meet kettle….
China’s human rights Vs. U.S. human rights… really ?
I’d have to say in terms of the last 50 years or more they’d be no contest whatsoever…Sold !
Businessmen would be jobless drunks in doorways if they were ‘fit and proper people’
Decency and money very rarely co-exist.
I, for one, welcome our new Chinese overlords. If they give us our new stadium, invest in the squad and bring the good times back, i’m willing to overlook a few human rights faux pas.
It’s not as if the UK, US and many other allied countries can start taking the moral high ground after their actions in recent years…. iraq anyone. All money is dirty, some are just better at covering their tracks than others.
Look around your house. If you find anything that has ‘Made in China’ on it then you have endorsed this Chinese regime already…and probably many times over.
Hi all, I am a loyal LFC supporter since 1980′s and also from an Asian background but i for one think the Chinese taking over my beloved football club is not a good idea. I like how much cash they have and all but have you ever seen any Chinese business men that are not stingy. They will be in it just for the sake of making profits and probably PR opportunities. Saying that i don’t want another American owner who associates with the current owners. So i would welcome a wealthy Kuwaiti family or DIC ( whatever happened to their interest? )
Are you an Arabian?
“They will be in it just for the sake of making profits and probably PR opportunities.”
Businessmen for the sake of making profits… what has the world come to???
i will be happy if the reports that gillette and hicks will have to walk away without making any money are true. the two of them have brought this great club to it’s knees, peddling nothing but lies. david moores must take responsibility for his lack of due diligence in selling the club to them in the first place. bring on CIC ahead of these guys any day.
This is too weird for me man.
Yes it will be a money making and PR exercise… and? The PR exercise will only mean anything if we are successful. The implication being the new owners will make success (big, big success) a priority, as do we the fans who have suffered three years of chronic nausea induced by Hicks and Gillett. Bring it on! This opportuninty if missed will only go to someone else and once again we will be watching the rest of the world instead of ruling it.
Have you all lost your minds? No wonder you limeys needed us Yanks to bail you out in WWII. You’ve got no spine!!!! It sounds like the Chinese government has got you by the balls- willing to drop your knickers so the Ghost of Chairman Mao can have his way with you. You’re all well on your way of becoming cogs in the Chinese machine of world domination. Pretty soon you won’t have any more gas (that’s petrol, for you limey bastards) to run your crap cars b/c China will take it all from you. No government ownership of Liverpool Football Club!
Peter – you can’t be that thick – who do you think owns most of the US Govt’s debt? You’re have a cog for years fella.
Just another poor american sour grape loser….
Obviously…YOU are a very scared….Chelsea or Manure supporter….!!!
peter…I can only assume you posted your comment immediately after a well oiled visit to a local bar. Or, as brn442 points out, you must be thick (and ignorant) given China’s underwriting of US debt. You are, already, one of those “cogs” you deride.
From a business angle, this ticks most, if not all, the boxes namely:
1. repayment of £237m loan to RBS
2. removal of Hicks and Gillett
3. promise of 60,000 seat stadium to replace Anfield
4. a reported £150m available to Roy Hodgson to rebuild the team
5. prime access to the chinese populace and merchandising etc
6. sale of TV rights to that nation etc etc.
7. potential to be the world’s wealthiest club with the largest fanbase.
I’m not even going to pass comment on the remainder of your post. It reminds me so much of swiss cheese…full of holes! Come back when you’ve learnt a little of 20th century history and 21st century economics.
which is better? the ghost of chairman mao or the ghost of george bush jr and sr? you still get it either way.
“to run your crap cars”…ha ha. How’s the American auto industry doing?
The sooner Gicks & Hillet clear their desks the better. I think you will find that almost everyone that cares to leave a message will tell you that as long as the new owners have the club at heart then it wouldn’t make a difference if they were Chinese, Indian, African or any other nationality. The Syrian Yahya Kurdi (I think that’s his name), his bid should not be accepted as he is a very good friend of the son of one of the afore mentioned Dallas Cowboys.
we need to get this right this time and find the best owner,last time we were sold down the river by the anti christ {david moores} who walked away laughing all the way to the bank with our money.
i don,t care who we get as long as our great club is put back at the top where it belongs and isn,t a laughing stock any more.
please let it be true these yank vermin walk away no profit not one cent.
China has the biggest football market in the world….imagine LFC the biggest and richest club in the world….
F@$K politics……………the chinese will be gr8 for Liverpool!!!!!!!
Mr Broughton – KEEP A MILLION MILES CLEAR OF THE “SO CALLED SYRIAN BID” -its got george gillett written all over it.
chinese absolutly can !!!!
As a supporter I feel torn: neither have offered me a single, passionate football fan who has his own (and others) financial backing to get us out of debt, into a new stadium, and new, high profile players. The Syrian bid hasn’t said enough to calm my continued fears of slash and burn while the Chinese haven’t inspired tons of confidence in their stability (how many empty shopping malls and bullet trains can they operate without having to resort to a fire sale?)
It’s gotten to the point of I’ll take what I can get, just get the two businessmen out.
The pros far outweigh the cons with the Chinese bid. While human rights abuses cannot be ignored, there’s a fair amount of pot / kettle in this argument as we all know that our own Government’s deceits in the sexed up Iraq invasion dossier was directly responsible for our involvement in the killing in many thousands of innocent middle eastern civilians. You have to ask yourselves, who are we to take a moral high ground?
The Syrian / Canadian bid is just too comfy for Gillet to sit well with me and the family-from-Kuwait proposal is all a bit too Portsmouth at this stage.
Let’s look at what’s being promised by the Chinese. Debt free; new stadium; sound financial / commercial footings into a market with billions of potential fans; and a cool £150million available for transfers immediately… Tht’s one hell of a dowry but these are just promises at the moment and LFC’s fans know better than anyone that promises made and promises kept are not the same thing at all.
I’m very wary of being so keen to get away from the yanks that we run straight into the arms of even bigger villains – but, taken at their word, the Huang / CIC deal is by far the best on the table so far as I can see.
One thing in common with us and the Chinese is the colour RED! hahaha Chinese loves RED and think its good luck so hopefully if they do own us they bring alot of luck for both!
I just don’t feel that Syrian bid is al that it is made out to be. This consortium of backers from canada and mid east. Who are they? do they have the finance to to buy the club without putting LFC in debt like the wan-ers from from the wild west. The Chinees at least we know who they are where the money hascome from and even part of their intentions. Gillet and hickss are snakes and don’t give a sh!t about LFC. So will hold out for the highest bid, low life that they are. I so hope that the Chinees force a sale with butch and sundance making very little or even no profit. At least if the reprts are corect the Chinees could make us a super rich club, fingers crossed.
Gaffer..a good piece and perspective on a crucial few days for LFC. Having listened to Sky Sports News this morning I can advise the following:
“The first is how the Premier League’s fit and proper person test will consider a Communist government owning an English club.”
…a spokesperson in the City of London states there ought to be no issues on this front. Ideology apart, this does not differ from the ownership arrangements at Man City.
“…what are the Chinese Government’s goals? Are they purely investment, or do they have other ideas in mind such as PR opportunities?”
…according to a footballing correspondent, they are purely investment though PR is bound to figure somewhere along the way. CIC would fund as appropriate, taking a back seat in the operation. They would clearly expect a percentage return linked to “risk factor” involved. They seek long term ownership with stability at the core. Building the brand in China would be a major aim with all the spinoffs that come with it, ie merchandising, TV rights etc. Imagine the sale of “Torres” shirts there alone!
There are still 2 other competing bids as you will be aware, one of whom is claiming a deal is imminent. Time will tell. Regards
Well, seeing as China already OWNS THE WEST, this really would not make much of a difference, would it?
Though I have mixed feelings about it, I’d caution everyone against believing that just because a potential buyer has promised all sorts of things, it doesn’t mean they’ll actually do it. We’ve been down this road before.
really it has come to this.. governments owing EPL football clubs.
FT claims CIC not behind Huang bid. More research please.
JD, just because CIC claim they’re not behind the Huang bid doesn’t mean they’re not interested in purchasing Liverpool or that it isn’t true.
Cheers,
The Gaffer
You don’t cite much information about the Chinese Government being involved with this deal. It is a pretty strong claim to lack even a single citation.
Besides, the Chinese economy has issues coming up, so might as well take the money and run.
Yespage, see http://www.guardian.co.uk/sport/2010/aug/05/china-liverpool-ownership-fund
Cheers,
The Gaffer
Gaffer…Just heard on Sky Sports News in the UK that a spokesman for CIC has confirmed they are not interested in investing in Liverpool FC. They consider it a “high risk” venture and not in keeping with their overall Mission Statement. LFC are also seen to be too “high profile”. So the question is, who are Huang’s backers?
if you think us human rights are any better than china, you are an idiot. us is better at covering up their human rights violations, i.e. they are more cunning about how they do it. never read about the innocent people that were raped and tortured after 9/11. every government is just as evil as the next.
It’s a basic but glaring irony that this website has a post titled “Where Has All of the Quality Soccer Writing Gone?”
Granted, this story has been loosely reported by every news outlet so far, but this piece continues the conga line of cheap speculation (already connecting human rights abuses! Sensational!). To think the Chinese government will have a direct hand in this (future story: “President Juntao Pressures Hodgson to Play Attacking Football”) is ridiculous.
How about we wait and see what happens before the “Happy Meal toys” and “China owns the US” tangents start. If all the rumors prove true, it will be a financial savior for the club and the fans should rejoice. The good ole days of “tradition,” “heritage,” “purity of the game” are well over and will seem a myth to the younger generation of fans that are growing up with this climate as the norm. Global markets and capital rule. The fans that complain about this will forget it the minute Liverpool win a title. It’s the way forward. Whether one finds this reality abysmal however, is another story.
Joseph, The Guardian wrote the story with what I would imagine would be reliable sources. The Times also wrote a similar story. For them and us to wait until everything is signed, sealed and dusted, we would miss the developing story of what led to the final deal.
Cheers,
The Gaffer
This seems a bit short-sighted when for example, the team’s kits are made in China and in Far East sweatshops which supporters happily buy, but if the team’s owners are from the same region only then is it a problem?
In fact, the purchase of LFC by a chinese backed outfit would be a consummate capitalist transaction!
How is it different than big businessmen based out of Middle East states with horrible human rights issues and oppressive regimes, owning other premier league sides?
I think the reality here is that money is the name of the game in the premier league and that should be apparent.
Liverpool fans cannot be distracted by the “financial benefits” that the club will recieve through this deal, as whoever takes over needs to match both long and short term goals which to me is unlikely considering the fact that its a foreign government and especially a communist one. I am dubious over the ramifications of this takeover and i dont think there is enough info out at the moment to make any liverpool fan confident that this takeover attempt is entirely beneficial.
The Glazers are a prime example of how sour a takeover can go. Foreign ownership generally lacks the commitment to the club, and the decision making process comes down to profit and how much of it. The current liverpool owners too are another example, coming in with lots of money, and now wanting a quick way out but not until the liverpool share price has maximised. If they dont sell atleast 2 weeks before the deadline I dont think any takeover needs to happen before the xmas window as essentially transfers are the main priority.
Ultimately I (and im sure most other liverpool fans) would like to see a genuine bid from a domestic source with a relationship of some sorts with the club. However it is 2010 and not 1995 so this unfortunately is unlikely. The main priority in choosing our new owners is that their goals meet the clubs and that sacrifices will not be made, which in reference to the Chinese bid looks rather sketchy.
I’m a “Yank” and don’t care if Satan buys LFC, as long as he puts in money and these morons Hicks and Gillette are no longer association in any way. Worst. Owners. Ever.
I’m a bit uncomfortable with the anti-US bashing on some blogs, and when fans burned the flag a few months back, but I understand the frustration of the locals in Liverpool as these owners have been a disaster.
And let us please keep the politics out of this. Like others have said, the Chinese own most of the US’s debt, so in a way are our owners financially. Why have a higher standard of ownership for a football club? As long as Huang invests money and cuts out the off the pitch drama, I’m good to go.
most of the USA’s debt is held by citizens of the USA. China is the largest foreign entity to hold USA’s debt but it holds less than 10% of it. About 60% is held in the USA
This will just be another reason to hate Liverpool so I’m fine with it.
It is very kind of you to share this