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China: Dalian Wanda property group, has agreed to buy a stake in Atletico Madrid football club

2015/01/22

Wang Jianlin, chairman of the Dalian Wanda property group, has agreed to buy a stake in Atletico Madrid football club, the new move by China’s second-richest man to build a world entertainment empire stretching from China’s rust belt to Hollywood.

The transaction, worth €40m-€45m, is to be announced at a press conference in Beijing today, according to people close to the transaction. It will see Mr Wang’s Dalian Wanda Group take a 20 % stake in the reigning Spanish champions. Wanda in Beijing declined to comment.

The move by Mr Wang — whose personal wealth is $13.2bn according to Forbes Magazine — would be the initial Chinese investment in a top-flight European football club, and follows similar moves by wealthy individuals and companies from the Middle East and the US.

The club hopes that teaming up with Dalian Wanda will make it easier for Atletico Madrid to attract fans and sponsors in China, an significant market for European football teams such as Manchester United and Bayern Munich.

The acquisition could as well open the way for additional investment by Dalian Wanda in Spain, according to people familiar with the transaction. The Chinese group made headlines last year at the same time as it bought the landmark Edificio España tower in central Madrid for €265m.

Atléti — as the club is known locally — has been struggling financially, but completed remarkable success on a limited budget last season, winning La Liga and reaching the final of the Uefa Champions League. The team ranks third in the Spanish league this season, behind Real Madrid and Barcelona.

Wanda will acquire its stake by way of a capital increase. Miguel Ángel Gil, chief executive and leading shareholder in Atléti, and Enrique Cerezo, chairman, will continue to control the club.

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