By Paul Nicholson
January 27 – The timing could not have been better. Just as Southampton were celebrating their EFL Cup semi-final win over Liverpool, so Chinese stadium constructors turned would-be club owners Lander Sports Development, were announcing to the financial markets that they had agreed a deal for the English south coast club.
Lander made their announcement to the Shenzhen stock exchange that they had signed a deal with Southampton’s Swiss owner Katarina Liebherr. No price was mentioned but it is believed to be in the region £200 million.
Southampton are understood to have initially wanted £300 million with much of the value based around its successful academy system. However, Chinese accounting rules put player trading below the line, hence they will not include player valuation and sale potential in the overall club valuation.
The discussion with Lander first became public last November when Lander entered a period of exclusivity with Saints that ended without a formal offer being made.
However, the Lander announcement indicates that a deal in principle has been reached.
Liebher confirmed the talks were taking place in an open letter to fans on the club website, saying that the interests of the club would be at the forefront of any deal.
“I can only make limited comments regarding this process but I can assure you that any steps we do take will be in the best interests of the club. A potential partnership would need to clear multiple approvals and fulfil strict criteria before being confirmed,” she said.
“The Premier League is increasingly competitive; we need to keep moving forward and look to new markets for commercial growth, innovation and to share our journey. Together we have had many years of progression and success, and ensuring this continues is the main focus of any possible partnership.”
With China’s government tightening up its scrutiny of the movement of money out of the control to buy foreign businesses (it was never a straightforward process in any case) and the focus on football in particular, a finalised deal may be some way off.
Saints would be the second acquisition of a Premier League club by Chinese investors after the sale of West Bromwich Albion last September to Gouchan Lai for £175 million. In December 2015 Chinese consortium, CMC, paid £265 million for a 13% stake in City Football Group – the Manchester City’s holding company.
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