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Premier League, Football League To Scrutinize Aston Villa's Proposed $94M Takeover

Relegated side Aston Villa’s proposed £65M ($94.3M) takeover "is under scrutiny" after it emerged the Premier League and Football League both harbor "­concerns over the owners hoping to buy the club," according to John Percy of the London TELEGRAPH. Recon Group "is facing a thorough investigation from both governing bodies following revelations that the Chinese conglomerate controls only one listed company," and not five "as originally claimed on Villa’s official website." Villa has "altered the statement on Recon’s portfolio" while there are other concerns over the "financial muscle and background of the group," owned by Tony Xia. Recon’s takeover will face a "mandatory examination as part of the owners and directors’ test before the takeover is fully sanctioned." The Premier League "is conducting its investigation while the Football League’s due diligence will ­begin next month," when Villa ­officially becomes a Championship club (TELEGRAPH, 5/20).

CAUSE FOR CONCERN: In London, Charles Clover reported the admission "raises questions about the due diligence on Tony Xia, the businessman behind the deal." A Hangzhou-based spokesperson for Recon reached by telephone on Friday, who "identified himself only as Mr Jin," admitted the company "currently only has controlling share in Lotus Health." Meanwhile, he said, "The acquisition deals for the remaining four companies are still being finalized and should come out soon." He declined to name the companies. The Recon Group said the mistaken information contained in the press release had been the result of a "miscommunication" with Aston Villa. The information "raises questions not just about the truthfulness of the claims," but about the "financial health" of Xia’s business group. Last month, Lotus -- Recon’s "only verifiable asset" -- announced it had made a net loss in '15 of 508.5M yuan ($77.6M) on revenues of 1.7B yuan ($260M), compared with a net profit of 23.9M yuan the previous year. Recon Group’s "other revenues were unclear as the group does not appear to have ever published an audited financial statement" (FINANCIAL TIMES, 5/20). In London, Laurie Whitwell reported Villa sources "are confident the deal will be approved and have been made aware of coming changes to the business in China." The £60M ($87M) initial payment for the club has been received. But "these are details the Premier League and Football League will pore over, only green-lighting the takeover once evidence of funds has been provided." The Premier League is understood to be "taking the immediate lead because Villa only officially cease being a top-flight club in June" (DAILY MAIL, 5/20).

NAME CHANGE: CITY A.M.'s Joe Hall reported Xia "has suggested he will alter the name of the club's stadium to feature his Lotus Health food business" once his £60M takeover is completed. He has "already begun discussing his plans for the newly-relegated club," claiming he could change the name of Villa's home since 1897 to "Lotus Villa Park." Xia: "One of the things we have thought about is using the Lotus Health name to rebrand Villa Park. Villa Park is a very historical stadium, so we will not simply and callously destroy a club's history. We want to use Villa's history and its substantial fan base around the world to also promote Lotus Health products and services globally" (CITY A.M., 5/21).

MOYES TO MANAGE CLUB?: Percy reported in a separate piece former ManU Manager David Moyes "is in talks with Aston Villa and considering a return to management in the Championship." Moyes has met with Xia "and could agree to take charge of the relegated Midlands side later this week." Sources close to Moyes have confirmed that he is a "leading contender and Moyes is now waiting for reassurances" over Xia’s £75M ($109M) takeover before committing himself. Nigel Pearson and Roberto Di Matteo "have also been in the frame but, although he has yet to receive an offer, Moyes is now believed to be the front-runner." Moyes met with Xia’s representatives at his home and the Chinese millionaire "has revealed he is hopeful of making an appointment before the weekend" (TELEGRAPH, 5/22).

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