(Photo credit: Maria Lysaker-Imagn Images)

Houston Dash owner Ted Segal is in 'advanced talks' with a group interested in buying the NWSL club for $120 million, Sportico reported Wednesday, but any transaction likely would require increased scrutiny.

The RHC Group was founded by Richard Hsiao, 24, who was born in the United States, the son of Chinese billionaire Jianhua Xiao. But per the report, the NWSL is looking into how RHC has made its money since Xiao reportedly made his billions by doing business with Communist Party leaders.

Xiao is in prison, serving a 13-year sentence for what the government said were financial crimes.

Sportico said RHC and another Hsiao business, venture fund J17Capital, reportedly were started using money from Hsiao's mother, Hongwen Zhou, who is wealthy on her own and apart from Xiao.

Hsiao reportedly has been looking to buy a franchise and has started the background check and review process. Any sale would require a vote from NWSL owners.

RHC, a sports and entertainment investment firm, is an investor in TMRW Sports, the parent of the TGL golf league, and owns Greek basketball club Aris B.C.

A $120 million sale price would be well above the $74 million valuation that Sportico gave the club a year ago.

'The NWSL's thorough due diligence process regarding the proposed transfer of control ownership of the Houston Dash is ongoing,' a league representative told Sportico. 'As with all such matters, the NWSL Board of Governors retains full authority to approve or deny any ownership change based on the league's governance standards.'

If the deal is finalized, Hsiao would be the youngest owner of a franchise in 'major U.S. sports,' per Sportico.

Segal would retain control of the Houston Dynamo of MLS, and the Dash would remain Houston, according to the report. The real estate developer bought majority ownership of the franchises for about $400 million in July 2021.

--Field Level Media