[Information Times] The Richest Becomes the Owner of Guangzhou Football Team

Information Times March 2, 2010 A32 Sports A33 Sports

Journalist: Zou Tian From Guangzhou

Evergrande Real Estate Group invested 100 million yuan to buy out the ownership of Guangzhou Football Club, and became the new boss of Guangzhou Football Team. In yesterday afternoon, Guangzhou Municipal Bureau of Sports held the agreement-signing ceremony for Evergrande Group becoming the boss of Guangzhou Football Club & Guangzhou Automobile Group becoming the title sponsor of Guangzhou Football Team and the news briefing, formally announcing that Evergrande Real Estate bought 100% shares of Guangzhou Football Club, and Guangzhou Automobile Group got the naming right for one year with 25 million yuan.

In the news briefing, the representative of Guangzhou Football Development Center signed the agreement on the share transfer of the club with the representative of Evergrande Real Estate Group and signed the agreement on the title sponsorship of the club with the representative of Guangzhou Automobile Group. So far, Guangzhou Football Club has been formally renamed as Guangzhou Evergrande Football Club, the registered capital of the club has increased to 100 million yuan, and Guangzhou Football Team has been formally renamed as Guangzhou Automobile Team.

In fact, before the end of the 2009 competition season of Chinese premier league, Guangzhou Municipal Bureau of Sports and Guangzhou Pharmaceutical Club had started the shareholding system reform of the club. Guangzhou Pharmaceutical Group, Guangzhou Automobile Group, and an enterprise in Luogang District of Guangzhou became the three shareholders of the new Guangzhou Football Club, and implemented the management of the shareholding system for the club.

After the exposure of the football fraud case in 2006, the shareholding system reform for the club was stranded at the same time. However, the withdrawal of Guangzhou Pharmaceutical Company did not influence the development of Guangzhou Football Club. At the beginning of December last year, Guangzhou Municipal Bureau of Sports set up the Leadership Group for taking over Guangzhou Pharmaceutical Football Club.

The takeover group made decisions on issues such as the players transfer to other clubs, the introduction of domestic and foreign aid players, and investor invitation. At the same time, Guangzhou Municipal Bureau of Sports entrusted Guangzhou Football Development Center, an entity company subordinate to it, to be the shareholder of the club, and registered the setup of Guangzhou Football Club Co., Ltd. in Guangzhou Industrial and Commercial Bureau.

Before this, Guangzhou Automobile Group had been regarded as the largest sponsor of Guangzhou Football Team in the new competition season. Guangzhou Municipal Bureau of Sports and Guangzhou Automobile Group originally planned to hold the agreement-signing ceremony and the news briefing on Jan. 28, but finally Guangzhou Municipal Bureau of Sports declared to postpone the news briefing for some reason.

Guangzhou Automobile Group and Guangzhou Football Development Center finally finished the agreement-signing ceremony yesterday. Mr. Zeng Qinghong, the general manager, formally announced that Guangzhou Automobile Group obtained the naming right of Guangzhou Football Team in the new competition season with 25 million yuan.

Mr. Liu Jiangnan, the chief of Guangzhou Municipal Bureau of Sports who attended the news briefing, said that he was grateful for Evergrande and Guangzhou Automobile which became the boss and the sponsor of Guangzhou Football Team in the critical downturn and supported the development of Guangzhou Football Team, and hoped that the new club could carry forward the Zhixing style , restore the stately appearance of Guangzhou Football Team with the first-class professional ethics and at the first-class competitive level, and reach the goal of returning to the premier league in the new competition season.

It is learned that the new club will offer large-amount reward for the successful return to the premier league of the football team, and the amount is at least no less than five million yuan. What deserves to be mentioned is that Xu Jiayin became the richest person in Mainland China without any doubt with the property of 41.8 billion yuan after Evergrande Real Estate was listed in Hong Kong on November 6, 2009. In other words, the richest person in Mainland China became the new boss of Guangzhou Football Team.

We hope that through the operation of master stoke, we could help Guangzhou Football Team return to the peak to let Guangzhou football market become hot again, build the team for Guangzhou fans, train more talented players for the national team, and make contribution to Chinese football for a new development stage. We will either do nothing or do the best at all costs. Xu Jiayin

The Sports Bureau is a functional department of the government and a state organ. In principle, our football management office cannot be engaged in a company. Evergrande's becoming the owner just solved the problem of the systematic obstacle for us. Liu Jiangnan

Now the budgetary capital has increased. We also hoped that we could introduce foreign and domestic aid players with more powerful strength. Now the quota for foreign aid players has been fulfilled, and foreign aid players could be changed only in the intermission period. As for domestic aid players, we will see whether it is possible to employ the players of the national team with the permission of Chinese Football Association. Peng Weiguo

Since the emergence of the idea of shareholding system reform , the progress of Guangzhou Football Club may well be termed as full of twists and turns. On schedule, Guangzhou Municipal Bureau of Sports and Guangzhou Football Association would undertake the heavy responsibility of managing the club. It would assign Guangzhou Football Development Center subordinate to it to set up the club for the games of Chinese series A league in the new competition season. But because of the limitations of system, this plan has never been implemented.

The sports bureau is a functional department of the government and a state organ. In principle, our football management office cannot be engaged in a company. Evergrande's becoming the owner just solved the problem of the systematic obstacle for us. When accepting the interview, Mr. Liu Jiangnan, the chief of Guangzhou Municipal Bureau of Sports, said that Evergrande s becoming the owner of Guangzhou Football Team solved the troublesome problem for the municipal bureau of sports.

Before Evergrande became the owner of Guangzhou Football Team, Guangzhou Football Club would originally play games in the new competition season under the management of the takeover group. Guangzhou Municipal Bureau of Sports has always been worrying about the trusteeship, there is a systematic obstacle even if a new club is set up in the name of Guangzhou Football Development Center.

It is also an institution of the country. In the existing management system, functional departments and institutions of the country cannot run commercial companies, unless they separate themselves from the Sports Bureau." Liu Jiangnan has kept matters related to trusteeship cautious, to be cautious, we have applied with relevant departments, including the Organization Office and the Discipline Inspection Commission of the city.

This is a special case. Liu Jiangnan said that the main reason why Guangzhou Municipal Bureau of Sports was eager to sell the club was the systematic obstacle. However, the takeover group no longer worried about the systematic obstacle after Evergrande bought Guangzhou Football Club. Now Evergrande is the boss.

The club is no longer managed by Guangzhou Football Development Center, and we won t be restricted by the system.

Liu Jiangnan holds the opinion that as enterprises do not have deep enough understanding of the professional football, they are likely to have problems in management which would even lead to failure. "The withdrawal of Guangzhou Pharmaceutical needs to be deeply reviewed. Guangzhou Pharmaceutical has invested a huge sum of money, but it tumbled at the critical time.

We think that Guangzhou Pharmaceutical had such a result exactly because it did not have deep enough understanding of the regular pattern of football management and the rules and regulations of Chinese Football Association." After the acquisition of Guangzhou Football Club, Evergrande temporarily transfer the right of management of the club to the takeover group.

Liu Jiangnan thought that this would be helpful for the development of Guangzhou Football Team. It is not true that a professional football team can be successful as long as it is wealthy. Enterprises usually do not have deep enough understanding of Chinese football and Chinese sports, at which aspect we are good.

It is only temporary that the government department manages the team. At present, we will lead Guangzhou Football Team for a short period of period. Our main purpose is to help Guangzhou Football Team to settle down. We will return the right of management to Evergrande at a suitable time." Liu Jiangnan believes that Guangzhou Football Team can certainly return to the premier league within the year with the joint efforts of Evergrande and the takeover group.

In addition, the action of Evergrande of 100% acquisition of Guangzhou Football Team is amazing. Mr. Xu Jiayin, the chairman of Evergrande Real Estate, said that the matters related to the purchase were not formally confirmed until the night of the day before yesterday. He says that after Evergrande became the boss of Guangzhou Football Team, besides the support of Evergrande Group, the team mainly depends on the independent management of the club.

The main goal of Evergrande Football Club in this competition season is to perform well in the games of Chinese series A league, and try to return to the Chinese Premier League as early as possible.