High hopes from soccer clubs

A security guard keeps watch before a news conference with Chinese retailer Suning and Italy's Inter Milan in Nanjing, Jiangsu Province, June 6, 2016.[Photo/Agencies]

Electronics retailer Suning Commerce Group acquiring majority stake in top Italian soccer club Inter Milan is just the latest example of Chinese businesses making their way into overseas sports clubs. Chinese investments have been linked with Italy-based sports rights group MP & Silva, AC Milan, and US-based Galatioto Sports Partners, and likely a French soccer team.

The reason why European soccer teams are interested in Chinese investors is that the latter have "ample capital". However, what Chinese investors should focus on is not "philanthropy", but opportunities for making competitive profits, especially at a time when Europe is facing economic slowdown.

For European soccer clubs suffering financial difficulties, the march of Chinese investors toward European soccer is like "rainfall after a long drought". For Chinese investors, what economic effects such a venture can bring, however, is yet to be seen.

If China's top authorities provide considerable policy support for soccer, the sport will have a bright future in this populous nation.

On the other hand, soccer has had a much longer development process in Europe and its further development in the region in the short run is unlikely. But since soccer in China has been plagued by poor management and performance over the past two decades, it remains to be seen whether Chinese investors can efficiently and profitably manage the clubs in Europe.

For financially powerful domestic investors, to buy a European soccer team is relatively easy. But it is a big challenge for them to make their investment ventures profitable through professional management and compliance with local laws and regulations.

- Qianjiang Evening News