Is The Chinese Gov Going To Ruin Villa's Plans? NO
I asked in an article not so long ago Is The Chinese Government Going To Ruin Villa's Plans?
This was a question raised at the Fans Consultation Group meeting on 12/09/2017 and the long and short of it is... no they aren`t!
We specifically asked:
What is the situation being reported at the moment about the Chinese Government clamping down on investment in football clubs and how will this impact us? In the context of being in the Championship and also if/when Villa are promoted. In terms of the PL, obviously there is an outstanding debt to Randy Lerner to be paid upon promotion, so what will our immediate ambition and capacity be in the PL?
This is a complex issue and one we are closely involved in as you can imagine to see how this develops. The government has gone as far as naming companies that it sees as problems and we are not on that list. It seems the main aim is companies that have bought assets with debt which is not our case. There is little doubt that this is all about the China debt bubble and that football is being used as an example in key cases where debt has been used ie the purchase of AC Milan.
So, basically, no. Xia has enough foreign assets to more than cover what is needed at Aston Villa anyway, but rather than this being a public (in China) debt at a bank, this was a private purchase.
That is also the situation with the proposed purchase of Millenium Films where he`s simply been asked to take it private, which he is now doing.
The debt in China has grown out of control and the government are worried there could be a bursting of the bubble leading to toxic debt much like the USA subprime and the worldwide recession fall out from all that.
Hopefully that clears up that worry. Sadly it still doesn`t put the ball in the net though!!!