SWR: Chapter 701/702

Chapter 701: Bottom Picking
When Gao Shen and his team drove into Southampton from the highway, they turned west from the Red Bridge Interchange in the east, crossed the Test River, and continued southeast for less than two kilometers before arriving at Southampton's Staplewood Training Center.

As the car slowed near the main entrance, Gao Shen and the others looked out the window and were stunned by the sight of the training facility.

How to describe it?

The conditions were truly excellent, clearly showing that the Liebherr family had invested heavily over the past year.

If nothing else, just look at the full-sized indoor football pitch directly opposite the entrance.

How rare is that?

Even in the Premier League, Manchester City doesn't have one. Neither do Manchester United, Arsenal, Chelsea, or Liverpool.

To Gao Shen's knowledge, no Premier League team had yet built such a membrane-structured indoor training ground.

The reason was simple—it's incredibly expensive.

But Southampton had already built one. Even though it was just the size of a standard football pitch, the cost was significant.

In addition, Staplewood featured a large integrated training field, seven full-sized pitches, two small pitches for youth training, and three training buildings.

In Gao Shen's opinion, this wasn't a training base. It was just money everywhere.

Who would've thought such a facility existed in League One?

It might not be better than the training grounds of Arsenal or Chelsea, but it was certainly among the best in English football.

At least better than Manchester City's current setup.

Of course, that referred to the current Manchester City—not the new training base that was under construction.

"This isn't cheap!"

Sitting in the back seat, Su Qing looked at Gao Shen and gave a wry smile.

For lower-league clubs like Southampton, the most expensive assets aren't usually players or other variables. It's hardware like stadiums and training facilities.

Among these, player value fluctuates. Some are even on loan. But fixed assets like training bases and stadiums make up the majority of a club's valuation.

"There's news that the Liebherr family has invested at least 20 million pounds into this training facility since acquiring Southampton," Lucas added, understanding Gao Shen's reaction.

They had all thought Southampton was the most suitable club, but now it seemed their valuation had been too low.

And not just a little.

Forget everything else. This training base alone could rival those of top Premier League clubs.

In fact, not even Liverpool's Melwood or Manchester United's Carrington could compare—at least not in hardware.

Of course, when it came to software, Premier League teams still had the edge.

"Let's go take a look at St. Mary's Stadium," Gao Shen said calmly.

…

St. Mary's Stadium was located in the center of Southampton, near the west bank where the Itchen and Test Rivers converged.

Although Southampton wasn't a large city, the stadium was still some distance from the training base.

Unlike the training center, St. Mary's was surrounded by less ideal surroundings. There was a freight railway to the west, residential areas beyond that, construction material markets on three sides, and a massive sand washing site to the east by the Itchen River.

Gao Shen and his team approached from the south and quickly realized how tight the space around the stadium was.

The first concern was parking. While there were lots to the north, south, and east, they could collectively only hold 200 to 300 cars. The surrounding roads were also quite congested.

It was clear that Southampton's home fans were mostly local residents from nearby neighborhoods.

In terms of both the stadium itself and potential for expansion, the Saints had basically hit a ceiling.

Southampton had no subway system either. Fans had to rely entirely on public transportation.

That was a significant limitation.

However, the stadium itself was relatively new.

"The Saints' original home ground was called The Dell, with a history of over 100 years. In 2001, they moved to St. Mary's Stadium, which cost 30 million pounds. Part of the funding came from naming rights. It wasn't until 2006 that the name 'St. Mary's Stadium' was officially adopted."

At the turn of the century, many Premier League clubs were caught in a stadium construction and expansion craze.

Manchester United expanded Old Trafford several times. Sunderland and Middlesbrough also built new stadiums. Arsenal later built the Emirates.

At the time, a famous story involved Everton. They were 30 million pounds in debt and near bankruptcy, yet still desperately trying to raise funds for a new 55,000-seat stadium. They believed that increasing matchday revenue could rescue the club from financial collapse.

But we all know what happened. Everton failed to hold onto Rooney. When Manchester United bought him, they even had to help Everton pay off the bank to release the transfer.

Leeds United also campaigned for a new stadium instead of expanding Elland Road. Then-chairman Peter Ridsdale worked on it for a long time. But Leeds eventually went bankrupt and were sold to Ken Bates for 10 million pounds.

It's unclear whether it was under Ridsdale or Bates, but it was during one of their tenures that Leeds sold the stadium, training ground, and nearby land, then rented them back at a cost of 3 million pounds a year.

Some may wonder why?

The answer is simple: they didn't want to spend their own money.

Annual rent could be filed under operational costs, deducted from the club's finances. It was the club's money being spent.

No money? Then just accrue debt.

Don't be surprised. Being in debt is common among English clubs.

There was even a time when foreign investors bought clubs only to discover huge undisclosed debts. This led to court battles and media scandals.

It didn't just happen once. It happened several times.

In the past, the management practices of many UK club owners were rough and reckless. Ken Bates, Freddy Shepherd of Newcastle, even the Glazers at Manchester United and previous City owners used similar tactics.

British fans often opposed foreign ownership. But they never considered that foreign investment is what standardized the Premier League's operations and pushed its global development.

If clubs had continued under Ken Bates and Freddy Shepherd, would the Premier League have a future?

…

After touring Southampton, Gao Shen and his team had a good grasp of the overall situation.

They headed back north to London and checked into their pre-booked hotel. Lucas went out to meet contacts from the City of London.

In London, there were many bankers who specialized in football club transactions. Their job was to help foreign capital acquire English clubs. Abramovich, Mansour, Vichai, Thaksin, and others had all gone through these channels to buy Premier League teams.

While Lucas was out, Gao Shen took Su Qing to stroll through Knightsbridge.

Both had a gut feeling that Southampton's asking price would be high.

If nothing else, just the training base alone wouldn't come cheap.

Three hours later, Lucas returned to the hotel with the latest news.

Southampton's investors had no intention of selling.

"According to them, after Liebherr passed away last year, his daughter—who's now running the club—had considered selling. She wasn't interested in football. But current operator Nicola Cortese convinced her to keep investing and push for Premier League promotion."

Gao Shen understood.

He saw the Premier League's potential, and so did others. That was normal.

The only difference was that he knew just how massive the potential truly was.

If he remembered correctly, after Southampton made it to the Premier League, they profited handsomely from smart player transfers. Later, when investors bought the club, 80 percent of the shares cost over 200 million pounds.

It was easy to imagine how much the Liebherr family had profited over the years.

These investors weren't fools. It wouldn't be easy to find a bargain.

Of course, if Gao Shen really wanted it now, he could still get it—but he'd have to pay a steep price.

"What about Leeds United?" Gao Shen asked.

"I've looked into that as well. Ken Bates, the chairman, has been looking for a buyer. But all investors have been scared off. After multiple insolvencies, Leeds were docked 10 points in the 2006–2007 Championship season and relegated. The following year, they were docked 15 more points in League One."

Gao Shen was already aware of that. But Leeds United was tough. In the season they dropped to League One and were docked 15 points, they still finished fifth and reached the promotion play-offs. Without the deduction, they could've won the league.

Unfortunately, Leeds lost to Doncaster in the crucial play-off final.

They failed to return to the Championship. Morale collapsed. And with no money to pay wages, the squad was dismantled.

That was one of Leeds' biggest problems right now.

"They can't even pay player salaries!" Lucas said with a bitter smile.

It was hard to believe the once-proud club that dominated European football had fallen so low.

"So what now?"

"Ken Bates isn't asking for much anymore. He just wants to recover his costs. As long as someone is willing to take over, he's happy to sell. He's been working with City bankers for years trying to find a buyer. But investors are still wary."

"When we were in League One, no one wanted us. In 2009, we got promoted to the Championship and things improved a bit. But you know, in the past two years, the global financial crisis has hit hard. Even foreign investors are cautious. No one wants to pour money into football."

Gao Shen fell silent, carefully organizing his thoughts.

There was no doubt that this was a good time to buy low.

Gao Shen even suspected that the Liebherr family didn't want to sell now precisely because they recognized that point.

It would be difficult to fetch a good price right now.

If Southampton weren't for sale, then Leeds United might be a good alternative.

Most importantly, based on the current information, Leeds' price was lower than expected, though the overall situation was worse.

For example, the stadium was outdated, the training ground remote, and their youth development system was underwhelming. All of that would require investment.

But these issues were solvable.

It was just a matter of selling players to generate funds and reinvesting.

Just like how Wenger sold Anelka and used the money to buy Henry and build the Colney training ground.

(To be continued.)

Chapter 702: The Lion Opens His Mouth
Kenneth William Bates was born in London, England, but lived in Monaco.

The reason was tax avoidance.

Although he held a majority stake in Championship club Leeds United and served as its chairman and major shareholder, he rarely went to watch matches at the club. He simply wasn't that interested.

Besides, he was nearly eighty years old and couldn't handle the travel.

He was based in Monaco and controlled his UK business remotely.

Not only that, he had specifically commissioned Cash Harris, chairman of Seymour Pearce Investment Bank in the City of London, to act as his agent in selling Leeds United to interested foreign investors.

He had been trapped with this team for six years.

Back then, one of the main reasons he invested in Leeds United was because he saw the foundation of the club and believed they could return to the Premier League soon after relegation. So he bought low, planning to cash out and make a fortune once the team got promoted.

You have to know, the Premier League around 2004 and 2005 was experiencing a wave of foreign investment acquisitions.

But who could have imagined that shortly after acquiring the club, Leeds United would be docked points due to debt issues? Not only did they fail to return to the Premier League, but they also fell into League One, and that lasted for six years.

Just as they finally clawed their way back to the Championship, the global financial crisis struck.

Talk about bad luck!

So when Cash Harris told him that an investor from China was interested in Leeds United, Bates thought he'd misheard. After confirming it several times, he flew to London without delay.

He met the investor at the Mandarin Oriental Hotel, just south of Hyde Park.

He was stunned!

…

"Mr. Bates?" Cash Harris gave a gentle cough as a reminder.

Actually, he wasn't surprised. He himself had been stunned when he first saw this elegant Chinese woman.

He just didn't expect that the nearly eighty-year-old Bates would still lose his composure like that.

"Oh." Bates smiled awkwardly and adjusted his glasses. "Sorry, I just didn't expect the person I'd be meeting to be such a beautiful and elegant lady."

But soon after, Bates frowned.

"Excuse me, but why do you two look so familiar?" Bates looked at Su Qing in front of him and Fernando Lucas seated beside her, with a puzzled expression.

Both were easy to recognize. Su Qing was Chinese and Lucas was Spanish.

More importantly, they were quite well-known.

"Allow me to introduce them, Mr. Bates." Cash Harris smiled, thinking the old man had a sharp eye. He recognized them right away, not bad for someone his age.

"This is Miss Su Qing, head of the Chinese investment company. She is also Mr. Gao Shen's fiancée."

When Bates heard this, he slapped his thigh as it came back to him.

"Right, I've seen Miss Su's photos in newspapers and on TV. No wonder she looked familiar. And this one, if I'm not mistaken, should be Mr. Gao's assistant."

Lucas didn't hesitate. He extended his hand and said, "I'm his chief analyst, Fernando Lucas, and also Miss Su's investment advisor for this deal."

Bates looked at Su Qing, then at Lucas, and laughed again.

"Excuse me for asking, but is the investor interested in acquiring Leeds United actually Mr. Gao?"

"He's helping me as an advisor," Su Qing answered directly this time.

Cash Harris added, "In fact, Miss Su's family has substantial assets in China. Because of Mr. Gao, they're very interested in investing in football."

"So, Mr. Gao is planning to coach Leeds United himself?" Bates asked tentatively.

If that were the case, he would have to think it over carefully. After all, Gao Shen's reputation was no joke.

He was the hottest head coach in world football. His coaching meant trophies.

If he could own shares in a club coached by Gao Shen, and if that team reached the Premier League, it would be a guaranteed windfall.

"How is that possible? He won't get involved. In fact, he doesn't support my decision and has advised me against it, saying that football clubs don't make money." Su Qing replied with a smile.

Bates glanced at Cash Harris, who gave a subtle nod.

Indeed, he hadn't seen Gao Shen throughout the process. The only people he'd interacted with were Su Qing and Lucas.

According to media reports, Gao Shen was still in Manchester preparing the team for the upcoming city derby against Manchester United. How would he have time to get involved in a club acquisition?

Besides, with Gao Shen's salary, could he even afford to buy a club?

"In fact, it might not be a bad thing. With Mr. Gao's connections in European football, as long as he's willing, you could make money after acquiring the club. For instance, you could loan players from Manchester City, Manchester United, Real Madrid, Napoli—he has great relationships with those clubs and with people like Ferguson."

"Once the club is promoted to the Premier League and has more money, you can buy even more players. Besides, the whole world knows Mr. Gao has an excellent eye for talent. Any player he sets his sights on sees their value skyrocket."

Bates laid on the praise, but he was really probing.

"I said he won't get involved. He doesn't have the time. And think about it—if what you said is true, and Leeds United gets promoted to the Premier League, wouldn't it be a conflict of interest for him to be coaching Manchester City?" Su Qing countered.

Ken Bates finally believed her, though he felt a bit disappointed.

If Gao Shen were involved, he truly believed Leeds United could be revived.

…

Once the negotiations began, Bates revealed his sharp edge, not at all like someone pushing eighty.

He currently owned 72.85% of Leeds United's shares. He was the majority shareholder, and with his approval, Su Qing could initiate a takeover of the club. But his first offer was outrageous—he asked for 50 million pounds.

Not only were Su Qing and Lucas shocked, even Cash Harris was stunned.

Damn, the lion really opened his mouth. Who was he trying to fool?

At that moment, the lawyer Su Qing and Lucas brought with them stepped forward.

"Mr. Bates, I'm a lawyer from Frontier Law Firm, specializing in sports law." Richard Cramer handed over his business card. "Our firm is based in Leeds."

Leeds was the UK's second-largest legal hub.

Alright, bluffing wasn't going to work here.

When Cramer laid out all the findings from their investigation—ownership of the stadium, training ground, and surrounding land—Bates had to acknowledge it and admitted those assets had indeed been sold, though he claimed it wasn't his doing.

"I was wronged too. After I took over, I found out that bastard Ridsdale had sold them all."

Richard Cramer laughed. "Mr. Bates, you only spent 10 million pounds to acquire your stake in Leeds United, while the stadium, training ground, and land were worth 20 million pounds."

What he meant was, come on, old man. You're not naive enough to think someone would sell you a club worth 300 or 400 million pounds for just 10 million, right?

"Mr. Bates, I think we should all be more sincere. Otherwise, we'll consider other clubs. You know, many teams in the Championship, League One, and even the Premier League are in poor financial condition. You're not the only one selling." Su Qing applied pressure.

Bates licked his lips and nodded. "You've clearly done your homework. But the 50 million pounds I mentioned is real. Twenty million of that would be needed to reacquire the stadium, training ground, and land."

Su Qing gave a faint smile. She'd be a fool to take him at his word.

"Thirty million pounds?"

"Yes."

"That's unrealistic. I've also heard that you've been unable to pay player wages and even owe rent and stadium management fees," Su Qing said.

"That's false, completely false. You can check. We hire a professional accounting firm for annual audits. We've made a profit every season. Just a few days ago, they told me this season's operating profit is around one million pounds."

"Ha, Mr. Bates, that's easy to verify." Su Qing chuckled again.

Richard Cramer added, "According to my investigation, Leeds United is indeed behind on wages. But that's fine. If both parties are willing to cooperate, we can sign an exclusivity clause and arrange for a Magic Circle law firm to conduct due diligence."

An exclusivity clause meant that during a specified period, neither party could negotiate with third parties.

The benefit was that it would allow the next phase to begin, initiating due diligence on the target club. This would generate a detailed and accurate financial report, including specific personnel data.

It was standard practice in acquisitions.

But in football, it's particularly complicated because it involves player transfers, even from years ago. Outstanding transfer fees, back wages, bonuses—all were common. Installment payments were also widely used, and many clubs used those to secure bank loans.

This required extensive investigation, which only large firms with deep resources could handle. The "Magic Circle" referred to the top-tier elite law firms in the UK.

Bates was immediately silent.

This was precisely why Su Qing had brought a specialized sports lawyer.

No matter what, trust in the law and you'll never suffer.

Bates looked at Su Qing with complicated eyes. He suddenly realized that this elegant woman in front of him was no pushover. She did things flawlessly.

It seemed there was no more room for concealment.

Su Qing noticed Bates's expression change and understood what he was thinking.

"Mr. Bates, we are very sincere in our desire to acquire all shares in Leeds United. But to be honest, we can't accept your offer. Given the club's current situation, our highest offer is 15 million pounds," Su Qing said directly.

"That's impossible!" Bates shook his head.

"That's fine, take your time to consider. We're also looking at other clubs." Su Qing stood up with a smile.

Reaching a deal in the first meeting was unrealistic. She wasn't that naive.

(To be continued.)