Real Madrid to take stake in Chinese club

Spanish football giant Real Madrid plans to buy a 30 to 40 percent stake in Chinese club Beijing Guo'an for 30 million yuan (3.6 million dollars).

Real and Guo'an have signed an initial agreement on the deal, the Beijing Daily Messenger said Tuesday.

"The agreement is a confirmation of intentions of cooperation between the two clubs rather than a concrete contract," said the report, which added the two sides would continue detailed discussions about the deal.

"Even if both sides strike a bargain, we still have the majority stake in Guo'an," Luo Ning, vice chairman of the board of Citic Guo'an, the principal shareholder of Beijing Guo'an, was quoted as saying.

"Guo'an will not withdraw from Chinese football," he said.

Last October the club threatened to boycott the first season of the Chinese Super League after it was penalized by the Chinese Football Association (CFA) for staging a walkout in a league match over refereeing disputes.

The incident rocked Chinese football and sparked a month-long standoff between seven top-flight clubs and the CFA.

The CFA finally compromised by agreeing to carry out a series of reforms to improve the league.

Real's arch-rival Barcelona was linked last year with Beijing Guo'an on cooperation but their negotiations broke down, the report said.

Real used China as a pre-season training base in 2003 and proved a big hit, largely due to David Beckham who made his world debut for the club here after his move from Manchester United.

The report said the team would be back in July this year for a friendly against Beijing Guo'an.