More than window shopping? "Kenny" Huang Jianhua and the Liverpool bid
Friday, 6th August 2010 ~ Maggie ~ Link ~ Comments (0)
Earlier this week, "Kenny" Huang Jianhua entered the UK media spotlight when "it emerged" (The Times' words) that he was trying to lead a purchase of the English Premier League's Liverpool FC. Several reports indicated that he was working on behalf of the Chinese Investment Corporation (CIC), China's sovereign wealth fund. Midweek, Huang's PR people issued a press release saying that he "has registered interest in investing in Liverpool FC but has made no formal bid."Kenny Huang buying Liverpool FC? Certainly not on his own. Chinese government buying Liverpool? Very unlikely. This story already has too many unnamed sources, but I have to add one more: This morning I spoke to someone close to the CIC, who says that people there who would be involved in such a deal if it were in the works, and that person "have never heard of Huang Jianhua."
Huang (left) with Chinese Baseball Association chairman Lei Jun
As Gady Epstein, Forbes' man in Beijing, explains, it seems to make no sense for CIC to get involved in English soccer. The CIC's job is to make money, and despite being high-passion and high-profile organizations, soccer clubs are not high-profit. But China Daily reports that over the past two weeks, CIC has divested almost precisely enough of its investments to raise the 351.4 million pounds that The Guardian says is a rumored sale price for Liverpool. Matt Scott at The Guardian suggests that CIC is interested in Liverpools' TV rights and is speculating that the team can improve its finances by better leveraging media. There is also wide speculation that the club is undervalued, meaning that whoever buys it could possibly make a quick profit reselling it soon.
Huang clearly has interest in buying the club—or, more accurately, helping an investor or a group of investors make the purchase. He's no Mikhail Prokhorov, the self-made Russian billionaire and new majority owner of the New Jersey Nets. He needs other people's money to get this done.
As for the CIC/Huang connection, Epstein wisely guesses that someone got wind of a relatioship Huang has or says he has with CIC, and blew it out of proportion. But I'm inclined to think that Huang leaked the information himself. Though he shies away from direct media contact, he likes to manipulate the media. When he held a rare press conference in Beijing last year to announce his partnership with the Chinese Baseball Association, as reported here, the whole affair seemed targeted at potential sponosors who could help fund the Chinese Youth Baseball League, for which his company, QSL, had no actual plans. Also, Huang is a broker who seems unsatisfied with hanging in the background—he wants to be the face of the deals that he's involved in, and self-promotes accordingly.
Could it be that he leaked the Liverpool story to generate some buzz, and signal to potential investors that he was in a position to help them bid for Liverpool? Or maybe he learned that CIC was liquidating in preparation to make a bid, and he hopes to bluff his way into representing them.
Whatever is going on, Liverpool fans should know soon who their team's next owner will be, as the current owners are trying to get the deal done by next week.
Tags: Huang Jianhua, Kenny Huang, Liverpool FC, Premier League, QSL, soccer