After resolving the crises in Pavlos and Athens, Lin Qi did not linger in Greece.
He boarded a flight to Zurich Switzerland, in a private capacity. There, he was not only to complete the covert acquisition of Panathinaikos "sports entity" through an offshore account, but also to hold a closed-door meeting with risk assessment executives from several major Europe investment banks.
In a private club on the Lake Zurich.
Maurizio Gherardini laid out a thick document, "EBA Infrastructure and Commercial Real Estate Five-Year Plan," in front of Lin Qi.
"Boss, this is the latest financial estimate for 30 top-tier stadiums and surrounding commercial complexes in Europe." Gherardini pointed to the staggering financial figures on the report. "Since we've undertaken the construction and operation of all the stadiums, this is an extremely heavy asset investment. Currently, we've already utilized a very high level of leverage."
Lin Qi picked up the black coffee on the table, his gaze sweeping over the enormous debt figures, his expression remaining completely unchanged.
"There's a way to play with heavy assets," Lin Qi said confidently, setting down his coffee cup. "These super arenas aren't just playing venues; they're commercial complexes encompassing dining, shopping, and entertainment. We use the ever-increasing EBA broadcasting fees as collateral to secure rolling credit lines from Europe banks for development. We use the revenue from the first batch of arenas to pay the interest and then develop the next batch."
Lin Qi drew a closed circle on the table with his finger. "As long as EBA broadcast revenue keeps rising, and as long as the arena shops collect rent, this leverage will not break. According to my calculations, by around 2015, these 30 commercial complexes will be able to generate their own cash flow and completely eliminate all bank leverage."
"On that day..." A glint of fervor flashed in Lin Qi's eyes, "These 30 debt-free mega-venues will become 30 perpetual money-printing machines. The lifeline of indoor sports and entertainment in all of Europe will be in our hands."
Gherardini gasped in shock. The outside world thought Lin Qi was just running a basketball league, but they didn't know that what he really wanted was commercial real estate and entertainment dominance in the entire lower-tier market of Europe.
"During the past decade or so of deleveraging in the arena, what are your plans for handling the enormous net profits from EBA broadcasting fees each year?" Gherardini turned to the next page. "Besides the dividends distributed to the clubs, we will still have an extremely large amount of cash sitting on our books."
"Apart from setting aside operating expenses for the next few years, all of this money should be spent on youth training. We need to build a global youth training system." Lin Qi issued the order without any hesitation.
"Spend all of EBA's profits, except for maintaining arena operations and rolling over debt, on youth training..." Gherardini looked at Lin Qi, his mind racing as he calculated this massive cash flow. Suddenly, his eyes lit up. "Boss, I understand what you mean!"
"This is the perfect political shield!" Gherardini stood up excitedly. "If we package the EBA as a purely commercial league, the European Union's antitrust investigation and national sports departments will come after us sooner or later. But if we announce that the EBA uses the vast majority of its profits to build a youth training network covering all of Europe, to give back to basketball..."
"That's right." Lin Qi held his coffee, a smile playing on his lips. "This is called paying for a 'golden body'."
"When you go to lobby those politicians in the European Union and deal with the sports regulatory agencies in various countries, they'll see this level of investment. They'll realize our goodwill," Lin Qi methodically advised Gherardini. "You need to convince them that the EBA isn't a capitalist monster sucking blood from Europe, but a semi-public welfare organization genuinely dedicated to improving the overall level of Europe basketball and cultivating the next generation of basketball talent. When hundreds of EBA free youth training camps are springing up all over Europe, no politician will dare to destroy these kids' basketball dreams just to suppress capital."
This is a calculated move, leveraging grassroots public opinion and political correctness. With this "non-profit youth training" protection, EBA's expansion across the Europe continent will face no further official obstacles.
"But this money shouldn't just be spent in Europe." Lin Qi put down his coffee cup, his gaze returning to the Far East on the map. " China's population is just too huge. I don't believe that in that vast land of over a billion people, there's only one Yao Ming and one Wang Zhizhi."
"Under their existing sports school selection mechanism, there must be a large number of talented individuals from remote areas who, due to delayed growth or family circumstances, have no chance of entering the sights of professional teams and are wasted by the entire system."
"Actually, my initial idea was to use this money to directly enter the China market." Lin Qi's gaze was profound. As a boss with a Chinese background, he knew better than anyone what kind of terrifying basketball craze and commercial dividends would erupt in that land with Yao Ming being selected as the number one draft pick this year.
"My original plan was to directly invest in or acquire several CBA teams, replicating Boston's tactical system and EBA's business model there," Lin Qi sighed and shook his head. "But I had people investigate, and that path isn't feasible at the moment."
"Why? Don't they need funds?" Gherardini asked, puzzled.
"Because of entry qualifications and institutional barriers," Lin Qi pointed out incisively, "Under the current CBA system, it is explicitly stipulated that foreign investment is absolutely not allowed to own or control CBA teams."
"Since the top-tier professional leagues have closed their doors to us, then we'll water the roots." Lin Qi's fingertip heavily tapped several key cities on the map, including Beijing, Shanghai, and Guangdong.
" Maurizio, by mobilizing EBA funds and using the name of Europe youth training institution, is establishing a large-scale network of directly affiliated youth training camps and basketball schools in first- and second-tier cities in China."
Lin Qi turned to Gherardini and outlined his grand vision for giving back to the youth league. "Send the most advanced youth coaches from Europe there, and bring Boston's data-driven talent selection model. We won't touch their professional league ownership; we'll only develop talent."
"The talents cultivated in this youth training system will be directly transferred to the lower leagues of the EBA, and even the future NBA. As for those players who don't reach the Europe or NBA level but still possess excellent skills..." Lin Qi paused, "We will directly give them back to the CBA teams."
Gherardini instantly understood Lin Qi's strategic intentions.
This kind of behavior, which cultivates talent for China basketball for free and even benefits the local league, will not only not be resisted by the authorities, but will also receive strong support and the green light from sports departments at all levels.
"Use the money earned in Europe to build a global youth training network. Use compliant youth training subsidiaries to circumvent the CBA's capital barriers." Looking at his boss, Gherardini exclaimed sincerely, "Boss, you're not just a businessman, you're a top-tier strategist."
"Go ahead and do it, Maurizio. Use Europe money to mine the gold in the Far East."
After leaving Zurich, Lin Qi boarded a flight to Ohio, United States.
Since Stern forbade him from entering NBA arenas, he could only watch high school and college students...
In the summer of 2002, one name resounded throughout the American high school basketball world— LeBron James.