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Insight to Villa’s take over by Tony Xia - How football as a business is run in China


Deisler123

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2 hours ago, Deisler123 said:

Considering the current national strategy of China, I think it is very likely that Xia has state support. It is no secret that president likes football, he also wants to use football as a lead to a huge expansion in domestic market for economy growth. China has tons of foreign currency (5 trillion USD in their banks) and they need to be spent. And the strategy seems to be have global influence and soft national force (in terms of influence and economy), rather than hard force (like what US does in terms of military actions). You guys all know that the president of China visited the UK for 2 days – and he spent half day in Man City, right?

So I think it is quite likely he has state support.

If he has the state support, the best Villa can be is HUGE. And the worst? Very unlikely to be worse than worrying about relegation every year IMO.

Thanks for the information. This part is the key for me. I believe the part about state support is true. Correct me if Im wrong but image and appearance are important for the Chinese in a matter like this. So I don't believe a fraudster from mainland China have bought us and would be allowed to asset strip us.

Before anybody says Carson Yeung; I see that as a very different situation being from Hong Kong and so forth.

And with the image and appearance part above; Im quite sure it will not be Pearson as manager.

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Thank you, all the posts have been really interesting particularly the last one!

Going by what Dr Xia has said it would seem as to me he is either type 2 or type 5. Only time will tell and what happens over the summer will be exceptionally telling but if he is one of those 2 types of owners I will be happy! :)

 

if if he is type 5 however... :wub:

 

What's your views regarding Carson Yeung? Does he fit in the model as well? Obviously doesn't come across a very good owner but do you know anything more about him than we do already? It would be interesting to know the views of him inside China. 

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1 hour ago, cyrusr said:

Thank you, all the posts have been really interesting particularly the last one!

Going by what Dr Xia has said it would seem as to me he is either type 2 or type 5. Only time will tell and what happens over the summer will be exceptionally telling but if he is one of those 2 types of owners I will be happy! :)

 

if if he is type 5 however... :wub:

 

What's your views regarding Carson Yeung? Does he fit in the model as well? Obviously doesn't come across a very good owner but do you know anything more about him than we do already? It would be interesting to know the views of him inside China. 

Carson Yeung and Dr. Xia are pretty much similar, although Xia is more wealthier than Yeung is.

However, Xia may be backed up by China, and Yeung does not have that.

Plus, the market in China mainland is 1 billion time larger than HK.

So no conclusion can be drawn from the comparison between CY and Xia.

BTW - Yeung has been long known as a fraud/money laundering businessman. Xia has some negative reputation but not as bad.

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1 hour ago, NoelVilla said:

Thanks for the information. This part is the key for me. I believe the part about state support is true. Correct me if Im wrong but image and appearance are important for the Chinese in a matter like this. So I don't believe a fraudster from mainland China have bought us and would be allowed to asset strip us.

Before anybody says Carson Yeung; I see that as a very different situation being from Hong Kong and so forth.

And with the image and appearance part above; Im quite sure it will not be Pearson as manager.

All you have said is true and very logical, provided that Xia has state support.

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Xia does not have to be type 5 to take Villa to glory. What he needs to do is to stay as owner and stay away from the manager's business. 

As I said, 99% of failure in the last 15 years in Chinese football (including the national team) is due to, directly or indirectly, the negative influence of management team (club level or FA level) on the coaching team and players.

Edited by Deisler123
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10 hours ago, Deisler123 said:

Xia does not have to be type 5 to take Villa to glory. What he needs to do is to stay as owner and stay away from the manager's business. 

As I said, 99% of failure in the last 15 years in Chinese football (including the national team) is due to, directly or indirectly, the negative influence of management team (club level or FA level) on the coaching team and players.

If it is true that Xia has spent several years studying the English football system, then he should be smart enough to realise that interfering might work in China, but not here.

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Very insightful. Thanks for taking the time to allow me and others to gain a better understanding of how the club may be run and what might be round the corner.

Welcome and I hope you'll become part of the Villa family.

Edited by Stockport_Villain
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This is a superb thread, which has given myself and, I'm sure, the other readers, a new insight into the way China functions (not only with football). I feel a more cheerful now!            Just one question:- Deisler, do you think that 'McParland The Great' is correct with his own view of the situation? He certainly puts his thoughts over very well.

http://www.astonvilla.vitalfootball.co.uk/article.asp?a=7520870

McParlandTheGreat posted: 21/5/2016 14:03 

Let's look at the facts. The Villa website put out a statement that Recon was a holdings company which has a controlling interest in 5 companies, interests in many more, which in total employ 35000 personnel in 75 countries. It appears that the controlling interest in 5 companies bit was wrong. A guess might be that the mistake was at the Villa end; the Chinese end was quick to correct it. It now appears that the controlling interest is in 1 company (it is of course possible and even likely that it has major interests in the other 4; the statement from the Chinese end that it is engaged in acquiring a controlling interest in another 4 companies tends to imply this) 

There is a corrected statement on the Villa web site which reads: 
Recon Group is a multinational conglomerate group led by Dr. Tony Jiantong Xia. The group holding company owns, directly and indirectly, the shares of several publicly listed companies on the Hong Kong and Chinese stock exchanges and many other private companies employing 35,000 people in 75 countries. 

The mistake is a minor one. It doesn't matter a jot whether Recon owns majority interests in 0 or 100 companies. It is a holdings company; it is a vehicle for investments. What matters is whether or not it can put together the resources to buy Villa. It appears to have satisfied Hollis that it can. It now has to satisfy the leagues. If it can then Recon owns Villa. I have no problem with that. 

The thing about holdings companies is that they tend not to just stick money in any old company. They have a strategy. They target certain markets for growth. They build up related investments. They invest over a period, not for the short term. At least the better ones do; from what I've read of Recon this is what Recon does. They're based in a country with huge opportunities in the medium and long term, and Recon is wired into that. If you look at what's been said about the plans for Villa, that approach ties in. I've seen it suggested that it if we aren't promoted at the end of this coming season Recon will pull out. I don't think Recon is that sort of company. It's about long term investment and profit, not about short term return. It has highly ambitious plans for Villa and the structure around it; in the scheme of things, a one season promotion is highly desirable, but nowhere near critical. 

Early days. A lot more will become clear over the next two weeks and beyond. I hope we back it not knock it. Teams which aren't optimistic get nowhere on the field. Clubs and fans also need optimism.


 

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40 minutes ago, Tommo_b said:

All you have said is true and very logical, provided that Xia has state support.

hi guys, new member here, been reading your posts an its really interesting stuff, i actually watch alot of asian football, your quite right about evergrande, i watched them a while ago win the AFC champions league against al-ahli (i think!), they do appear set to dominate asian football for quite some time,ive also noticed a team called hebai who seem to be doing ok, i dont recall them last season, are they a new team or someone that may challange evergrande, i have a couple of questions though, 1 is related the other not so

  1. why isnt japanese football moving as quickly as chinese football, they have a better league set up and apparently better players but they dont seem to do well in the asian championships, in fact south korean teams seem to do much better.
  2. the information you have given about Dr Xia is very helpful but why would he need any help from chris samuelson, who seems to be lurking in the back ground

you may not be able to give any insight on question 2 but thought id put it out there

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