Kenneth Huang, or Huang Jianhua to go by his Chinese name, has been linked with a consortium who are apparently attempting to buy Liverpool Football Club, but who exactly is he? Huang had the unique honour of becoming China’s first graduate to work in the New York Stock Exchange in the 1980s, and has developed an interest in Western culture during his time in the United States. After graduating in 1984 with a BA degree from Zhongshan University in Guangzhou, his hometown, he moved to study in the US at Columbia University before moving to New York to complete his Masters degree at St Johns. It was when he was at New York University though, while completing some MBA financial management courses, that he began to work at the Stock Exchange.
From here on, Huang became an exceptionally accomplished business executive, building relationships in his native China and using his connections to great effect. He set up many international investments and financing projects between Chinese and American companies, partnering with many of China’s large state-owned enterprises in the deals, and making large profits by benefiting from the economic boom in China. One of his crucial partners in America was with one Les Alexander, and this is where Huang’s connections in sport become very interesting. Alexander is the owner of the NBA’s Houston Rockets and back in 2002, Huang worked with Alexander to bring Chinese Basketball superstar Yao Ming to the NBA to play for Alexander’s team.
Huang’s involvement in US Sport doesn’t end there though. He seems to have enthusiasm for many American sports including basketball and baseball. He uses his company SportsPro Media China to link Chinese sponsors and US Sports giants, including baseball team New York Yankees where he owns a percentage of the franchise with American businessman Marc Ganis. He has also brought much needed multi-year sponsorship deals for basketball teams Houston Rockets and Cleveland Cavaliers in recent years, as well helping to boost the NBA’s profile in China through pre-season tours. Early this year, Huang bought a 15% stake in the Cleveland Cavaliers leading to speculation in the US that Yao Ming would move from the Houston Rockets to join NBA all-star Lebron James at Cleveland. James has subsequently left to join the Miami Heat.
As well as being involved with sport in America, Huang has started to promote basketball in his native China, buying Jilin Northeast Tigers and purchasing a Basketball league in his home country (the National Basketball League) to rival the present Chinese Basketball Association. On top of this, he announced last year a youth Baseball league in the country, showing that his enthusiasm for sport is wide ranging. Huang it seems is determined to make both sports as popular as possible in China.
Huang continues to excel in business too and recently set up a new business venture called Rocket Capital with Les Alexander and San Antonio Spurs former owner Billy Joe “Red” McCombs. Together (with Alexander & McCombs billions and Huang’s connections with China’s state industries) they have begun to collect an assortment of companies, investing in one of China’s largest automakers Brilliance Auto, as well as in the China Railway Group, China Sinoma International Engineering, Uni President Enterprises Corp, Xinjiang XinXin Mining Industry, and Anta Sports Products, the last of which now sponsor’s Alexander’s Houston Rockets. Rocket Capital also has invested large amounts into Hong Kong’s private equity market, to the amount of $200 million in 2007 alone.
The two things you need to know about Huang then, are that although he is wealthy, it is his backers that really hold the billions. The second fact is that not only will he bring wealthy backers, his connections with China’s state owned companies mean exceptionally lucrative sponsorship deals from the Far East. If Huang’s consortium does takeover, expect many pre-season tours of China, but also keep in mind that Liverpool maybe the first football club to crack the highly lucrative market in China. Huang already has a track record of doing this, tying Anta to Houston Rockets and more recently Tsing Tsao to the Cleveland Cavaliers. His passion for sport is undoubted with his deal-brokering in both Basketball and Baseball, and he now looks like turning his attention to football and Liverpool FC.
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i wanna know is this guy richer than sheihk mansoor the man city owner?
Sounds great! Let’s get an USA-based owner who really has no cash himself but a stake in some so-so companies and a couple of American “franchises” and surely has as a brilliant plan to bring in from lenders and investors to sign players and build a stadiu…oh. Ah.
Success on the pitch = Money
Money = Success on the pitch
Gillette and Hicks were not in it for success, but purely to take a poorly run club (in the financial sense) and turn it into a well oiled machine and sell it on. Shrewd businessmen, they saw a good opportunity. Wouldn’t be surprised if half the squabbling etc was all an act. Although they rocked the boat, one day we may thank them for it. The most important thing is to find owners in it for the long haul and not the quick buck, and the less they are involved or “care” the better. As the great Bill Shankly once said:
“At a football club, there’s a holy trinity – the players, the manager and the supporters.
Directors don’t come into it. They are only there to sign the cheques.”
well v want yanks out at any cost..n ya prefer middle east money..rader dan a chinese pirate block
I think the important thing is to get back to £0 debt and build that new stadium. It would be great to have all the money Man City have, but it would also be great to “do it on our own”.
To have 65,000+ supporters every week generating the cash for new players, etc. Arsenal are a team that do this currently and there will be much more credit given to the team if we were to win using funds generated by ourself rather than gifted from a billionaire.
Lets face it, Man City would not get the same credit for winning the leage as Arsenal would.
quite agree wid gary..bt d fact daqt v win d title at any cost matters……bt luv do it on ur own……coz…dats d spirit of bill shankly..dats y lfc, manu, arsenal.hates dem n evry1 else..who cared wen chelseea won two back to back titles bt credit were given to arsenal’s invincible….
bt still title b main aim..den..do it urself stuff
If this is some kind of quick money making scheme for these wall street men. I don’t get it? they could make more money buying something sensible
Why bother, the club is over priced at £565 million. The break value is no way near that value. Only a Fan or Idiot would bother buying liverpool football club. (or someone money laundering chinese government bribes as inflated advertising revenue from china owned utilities)
The football and business model is rubbish. Arsenal have better squad, good youth policy, great manager, new stadium. Plus a whole load of luxury flats to sell. they sell star players for a profit and replace them with young talent. All round better run club and investment deal for that kind of money. (liverpool could learn from)
If they purchase the club, then 100million owed to RBS would have to be paid first + Hick’s & Gillette want 500million (double your money deal)
250m debit + 500m = 750million of debit against the club and we are back in the same boat with different owners. borrowing from Barclay capital to pay off RBS.
Plus the new stadium would cost £350million to build on top. Who is really prepared to borrow 1.1billion.
Club purchase 500million
Debit 250million
new Stadium 350million
New Player £100million
———————
£1.2Billion
_____________________
who will really spend 1.2billion
Come on football and score a goal!!!
lets give him a chance. him and his backers have billions.. obviously they will want to make some kind of money… lets just hope, they pay off the debt, build the new stadium, and give us 40-50 million plus whatever we bring in from player sales every summer, ill b more than happy… i really hope we bring in Figaroua, Defour , Remy , Turan.
China v the Middle East??…Old money v New money??
With the world of modern day football entering into a new era of billionaire backers or multi-billion dollar consortiums, LFC must look at what is not only best for the immediate future (e.g. no debt, new stadium & transfer funds) but also what’s best for the long-term future. Even though one sole investor appears to be the most attractive scenario today, I doubt that will be the case in 10yrs from now. The fulcrum of the world’s economy is continuously gravitating towards the far east (China & India that account for over 30% of the world’s population) so LFC must surely think long and hard about where it wants to be as a football institution and global brand before making any hasty decisions. If this Huang chap can address the immediate issues the club faces and resolve those quickly, then I for one will feel we’re in safe hands as the Chinese economy WILL become the largest consumer economy on this planet. That cannot be said for the U.A.E or any other middle eastern state.
City Analysis Value the LFC at 350million top value. top amount any bank would allow it to be valued at.
*Huang so far has managed to stop a player exodus at LFC while this takeover takes-place. (Gerrard + Torres)
He is also gone directly to RBS to try and force a sale through. I figure it will be some kind of 100million down-payment on debit + buying one of the owners out (Gillette) for 200million.
Then waiting tight until Hicks gets gives up or cashes in on the new “digital football rights package” (pot of gold in this mess)
the future looks far from rosy, just changing one ass for a “group of ass-holes” + Hicks
common g+h do some somethin right for once accept the bid
Absolutely saddening.
Another investor. Does he have money? No. Does he have good backer? Yes. Does he love LFC? No. Does he intent to make a lot of money leeching LFC? Yes. Somehow its like deja vu all over again!!!
Selling to DIC would have been the best option. Parry/Moores you will never be forgiven for this grave mistake.
rgds,
Jinu Johnson
Doha, Qatar
In economic terms it’s top stuff for the future. The Chinese economy will continue to thrive, no matter the bubbles on the surface (real estate). And their exchange rate is under-valued, I.E. if a revaluation comes their money will be worth more and can buy all you lot more star players. At the same time the US economy will decline, as will the value of the dollar – and the pound, euro etc.
But I have to admit that I’d rather see this guy come in, steady the ship, reassure players and staff by spending a few small notes while building the stadium and then level off with income streams from higher match-day revenue and far-east exposure. I wouldn’t want LFC to be the next Mercenary City. Some saying that with this guy the title is secured within two years because he’ll splash the cash. What are you on about? What’s the fun in buying a title?
Bottom line. In boom times, two American private equity investors bought a lacklustre asset with big upside potential, LFC, for a modest price while hoping to make a killing within a few years by reinvigorating the brand/club then selling it on for top dollar. Then the great Recession and the (likely) years of slow recovery intervened. Now, a Chinese chappie, probably fronting for more American private equity investors, is said to be ready to buy an even more lacklustre asset, LFC, at a real bargain price while hoping to make a killing within a few years by reinvigorating the brand/club then selling it on for top dollar. Doubtless, the business plans of both the current and proposed owners will involve putting up the cash flow from ticket sales, sponsorship, TV deals and merchandising to leverage significant amounts of cheap debt available from international lenders. Welcome to private equity. Same deal, different owners, same outcome for club and fans…probably…unless the investors take a longer term view and the prospect of preferential and significant sponsorship, TV, merchandising and other revenue from China is more than just pie in the sky.
It’s a potential marriage made in heaven!
Liverpool has the oldest Chinese Community in Europe.
It may sound the alarm bells however I’d trust Huang to have the best interests for LFC unlike the current owners. His CV is remarkable!
I hope Roy has his list ready of the top, top players to bring to Liverpool before the transfer window closes!
Aguero alongside Torres!
Kaka next to Gerrard!
Hell even get Cashley Cole!!!
This season ahead looks like it will be very interesting indeed!
Excellent article, thanks
Since the man in charge of selling has decided to keep quiet lets b patient and put our trust in him. I just hope Huang is no t another G&H in the making.
The Question is how much does this Chinese man have??
This Guy is no different to owners we have already,we gonna be in same situation if we end up dealing with him, LFC need to find a way to set up a deal with DIC (Dubai International Capital) this is the investment we need, DIC loves football, he wants to bring in the best players, he said onces, i will buy u some of the best players in the world and win u everything, but i wont be able to build a neww stadium straight away