CSL not shy about opening vault
By Sun Xiaochen (China Daily) Updated: 2016-03-04 08:38It's all about dollars and sense
The government's effort to boost China's sports industry has translated into major funding for soccer, despite challenges for investors to make ends meet.
The ever-increasing cost of the professional game was underscored by the more than $300 million spent by Super League clubs during the recent transfer window, but soaring acquisition and endorsement deals indicate enthusiasm for investment remains high.
The whopping 8 billion yuan ($1.2 billion) broadcasting deal signed between the league and China Sports Media Co Ltd to cover the next five years suggests clubs will have more funds for youth development, player transfers and daily operations - but some disparity remains.
According to research published by Vning Media Brand Consulting Agency last November, CSL's average attendance increased to more than 22,000 last year, ranking sixth among all major international leagues, while the total audience for televised games was 400 million viewers.
Those big numbers attracted 18 investors and promoters, who contributed more than 500 million yuan in sponsorship income.
Still, 16 league clubs lost money, with most of their 1.5 billion yuan deficit due to escalating player transfers, salaries, facility maintenance and security and youth development.
That challenge hasn't intimidated newcomers, as Suning Commerce Group Co, the country's major electronics retailer, last year purchased CSL Jiangsu Suning from Sainty Corp for a reported 500 million yuan.
For this season, which kicks off on Friday night, the league has attracted a number of new partners, including Swiss watchmaker TAG Heuer and Kingworld (Beijing) Technology, the league's new app developer.
Adam Zhang, founder of Key-Solution Sports Consultancy, said the country's national strategy to grow the sports industry amid downward pressure has become the main motive for companies outside the traditional sector to jump in.
