Chinese retail firm Suning "confirmed the purchase" of Italian football club Inter Milan on Monday, "in the latest -- and biggest -- move by mainland business" into European football, according to James Porteous of the SOUTH CHINA MORNING POST. Suning bought a stake of almost 70% in the club, for €270M ($307M), according to reports in China. The Milan club, founded in 1908, "is one of the sport’s most famous names." Suning Chair Zhang Jindong "promised to restore the team to the top of European football" and said that the deal "would also boost efforts to make China a global football power while raising the profile of the Suning brand." He said, "We believe that Inter Milan's super famous name in the world will definitely help us become a well known brand for China, Europe and other countries in the world. ... To join hands with Inter is a milestone for Suning and China's football history." Zhang "promised to pump in cash for new players." Zhang: "Suning will inject a steady stream of capital investment in Inter Milan, which will help it attract more talented players worldwide to once again win glory with a strong backing." Simon Chadwick, professor of Sports Enterprise at the University of Salford Manchester, an expert in China’s sports industry, said that the deal "could mark the strategic renewal of Italian football." Chadwick: "Serie A was the first European league to be shown live on TV in China in the 1980s, at a time when Italian clubs were dominant in Europe. Hence, Chinese people of that generation have a strong predisposition towards Italian football, especially AC and Inter who were strong at the time" (SCMP, 6/6). REUTERS' Adam Jourdan reported the club said
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current majority Owner & President Erick Thohir "would stay on as president and become the sole minority shareholder in Inter Milan," while former President Massimo Moratti will "sell off his entire stake" of just under 30% in the club. Suning said in a statement that Thohir "would reduce his stake" to about 30%. Inter Milan CEO Michael Bolingbroke said that apart from the equity stake, "Suning would also take on a large portion of the loss-making club's debt." He gave "no specifics" (
REUTERS, 6/6). In London, Wildau & Clover reported without explaining what it meant, Zhang said that the club will benefit Chinese "elements." Zhang: "From this day forward, as we add our Chinese elements to the team, and the team takes root in the largest football fan market, Internazionale Milano will be presented with greater opportunities than ever before" (
FINANCIAL TIMES, 6/6).
CREATING A STRONG BRAND: BLOOMBERG reported UBS Securities Asia Ltd. Analyst Liao Xinyu said that "investing heavily in sports is also part of Suning’s strategy to create a strong brand in the highly competitive e-commerce space." Liao: "The deal is a breakthrough for Suning in exploring opportunities in the sports industry. The sports strategy may help Suning cultivate more loyal customers in the competitive e-commerce market. If an online platform can remind customers of Inter Milan, it’s more likely to attract traffic" (BLOOMBERG, 6/6).
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XINHUA reported Zhang said that the Inter purchase is "set to help Suning FC improve its system of training, scouting and management." Zhang: "Suning will not only introduce foreign players to China, and Chinese players to overseas clubs, but also bring Inter's advanced management and training to China." Gong Lei, Jiangsu Suning's newly appointed coach and VP of Suning Sports said that the Chinese club "planned to send 100 youngsters to Italy every year." Gong: "We want young and talented players to train under Inter Milan's academy system. What we are doing will be a major push to Chinese football" (
XINHUA, 6/6).
