Property billionaire Wang Jianlin's acquisition in '15 of a 20% stake in Atlético Madrid marked the start of a $2.5B "spending spree on European clubs by a plethora of Chinese tycoons," according to Ben Bland of the FINANCIAL TIMES. Many "wanted to win brownie points" from Chinese President Xi Jinping, who has a jersey collection that would "make even the top fans green with envy," Xi called for a "sporting revolution" in China that would see the world's most populous nation "finally throw off its status as a football minnow." But just a little more than two years after helping "spark the headlong rush into football," the government "slammed on the brakes." Beyond the "weird and wonderful" world of football investment, the rapid turnaround reveals much about the "risks facing tycoons in China as they aim to curry favour with the Communist leadership while carving out business opportunities and enjoying the high life." Whether it is property development, robotics or football, "China's investment booms often follow a pattern." First, the state "signals a desire to achieve greatness in a particular sector." Next, investors "pile in," supported by state-owned and private banks "keen to do their bit." But then officials "start to worry about the quality of the investments as well as the build-up of debt, so they call for a sudden halt." Mark Dreyer, who runs a website called China Sports Insider in Beijing, said, "What's happened in football is typical China. There's a green light and everyone is 'go, go, go.' Then there's a red light. And now we're kind of on a yellow light." But while the days of "throwing silly money" at foreign clubs and players are over for now, the government remains committed to its long-term plan to develop football (FT, 5/4).
