Why buy European clubs?

Up to the date, Chinese business person have bought a dozen European soccer clubs. In China, there’s term: the five major European leagues, which are England Primere League, Liga, Serie A, Bundesliga and Ligue1. All five expect German Bundesliga have Chinese buyers already. Why not Bundesliga? Because German clubs are usually profitable, and the legal supervision is strict. Chinese investors like to buy clubs with great deficit.

If it is losing money, why buy it? Plus, Chinese don’t know how to manage European clubs, so the money they invested is very much down the drain. So what is the purpose?

All the buyers have listed company under their control. So the real money comes from funds guaranteed by their companies. With the money stream, they can stop the losses on the book. Then put the club assets into the listed companies and withdraw the funds. They will use the overvaluation of the Chinese stock market and the attractive concept of soccer to create capital surplus. For example, the Wanda Group brought money-losing Legendary Pictures with ￥23 billion. Why? Because they sell it with ￥37 billion in the Chinese stock market. Moreover, they can transfer their Chinese money to international asset the in process.