China-Cavs deal finally going through?
Wednesday, 16th December 2009 ~ Maggie ~ Link ~ Comments (0)
Huang Jianhua (Kenny Huang, left) in Beijing, June 2009
Yesterday, Reuters reported that Huang's deal fell through and that another group, led by another Chinese investor, one Albert Hung, is now buying that stake from Camelot Venture Group and David Katzman, former Cavs vice chairman.
But apparently Huang is not out of the picture. "Mr. Kenny Huang and Mr. Albert Hung are partners in the same company," a spokesperson for Huang told China Sports Today Tuesday. "Kenny will focus more with his investment in China while Mr. Hung will deal more with the Cavs matters going forward."
It would have been pretty embarrassing for Huang if he'd been completely squeezed out of the deal. When he made the baseball announcement in Beijing, he was calling his company QSL Sports, short for Qishi Lianmeng (骑士联盟), or Cavalier Alliance.
According to Reuters, Hung and company are paying cash and the deal should be finalized by the end of the year. According to the Cleveland Plain Dealer, the Cavaliers and Quicken Loans Arena have already signed a multi-year sponsorship deal with Tsing Tsao, China's ubiquitous domestic beer brand. The story doesn't explain what role Huang had in that deal, saying only that the parties signed it "With Huang standing over their shoulders."
The Cavs purchase is interesting and the other moves that Huang has made in Chinese sports—the baseball program, the CBA team–suggest his involvement with the Cavs is just meant to be one piece in a future sports empire.
In the above-mentioned Plain Dealer story, Brian Windhorst is clearly a big-time believer in Huang. The story opens: "Kenny Huang is a man who understands." The next paragraph lists Huang's Trans-Pacific credentials, followed by this:
"When he sees the Cavaliers and LeBron James he thinks big, grand long-term ideas. Then he executes them."
Slurp, slurp. What big, grand long-term ideas have been executed here? Windhorst finds Huang impressive that he cites him as a source for gauging the relative popularity of NBA teams in China:
"Huang said interest in the Cavs has exploded in China and they have surpassed the Houston Rockets, who have Chinese national hero Yao Ming, in popularity."
We're not saying that Huang Jianhua isn't likely to have interesting things up his sleeve, and big-time plans for the Chinese sports market. And we're not saying that the Plain Dealer hasn't done some decent reporting on Huang (witness this article from last May). But it's a little early to crown him MVP of Sino-U.S. deal-making.
Related:
Chinese investors buying stake in Cavs
Huang bets on baseball
NBA.com: Cavs new part owners interested in signing Yao
QSL's China baseball partnership still in very early planning stages
Tags: Albert Hung, baseball, basketball, Huang Jianhua, Kenny Huang, Lebron James, NBA, QSL, Yao Ming