China’s Overseas Financial Direct Investment (ODI) in European Football Clubs: Revisiting ODI in the Context of Sport Industry

Abstract One of the vital forces reshaping the global football business in recent years is stemming from China. In particular, a wave of Chinese ownership of European football clubs is not unheard of any longer. However, very little research has been done on this issue from sport management scholars. This study uses China’s overseas financial direct investment (ODI) to elucidate a sudden surge in the ownership of European football clubs. Thus, the purpose of this study is to explore possible explanations for ODI activities of selected Chinese firms that have acquired European football clubs. Using Dunning’s ODI paradigm, this study attempts to carefully explain the reasons behind the Chinese firm’s ODI to acquire these football clubs. Nine Chinese firms that acquired football clubs during the 2014-2017 were examined. This study argues that the firms have explicit firm-specific reasons for ODI, while political influences appear to affect acquisition decisions. This study also argues that most firms have specific sport industry-seeking motivation. Further discussion was provided based on findings of this study.