Real Madrid and Beijing Guo'an sign co-operation

Real Madrid and China Super League club, Beijing Guo'an, have signed a cooperation agreement to expand the Spanish side's image in Asia and to develop the Chinese football club. Xinhua newsagency reported the agreement was signed on Wednesday in Madrid.

According to the agreement, Real Madrid will lend its sporting, technological, commercial and strategic knowledge in order to help develop Beijing Guo'an and football in China. In return the Chinese side will support the development of the Real Madrid brand in China.

Real Madrid played Beijing Guo'an in July on a promotional tour of East Asia prior to this season, the third time they have toured the region in as many years.

Beijing Guo'an, playing as Beijing Hyundai, is part of the CITIC Group (China International Trust and Investment Corporation). It won the China FA Cup in 1996, 1997 and 2003 and the China Super Cup in 1998 and 2003.

UPDATE

Sinosoc reports that Real Madrid is now a part-owner of Beijing Guo'an: "According to the terms of an agreement signed by Guo'an board director Li Shilin and Real Madrid president Florentino Perez, the Spanish giants will initially own 5% of the club, with a view to increasing their investment in the future ... The initial plan was for Real Madrid to buy 60% ..."

Sinosoc says Real Madrid is paying 800,000 euros for the 5% stake.

Real will send a team of coaches to assess the Chinese team's strengths and weaknesses and come up with a adjustment plan, then will lend Beijing Guo'an three foreign players, probably from reserve teams and three coaches for next season. The Spanish club has also pledged to help Guo'an attract sponsorship, "and the team could be renamed Real Beijing Guo'an from next season".

See also: Taiwan's BenQ is next Real Madrid shirt sponsor (9 Nov)