Here are the top China sports business news stories you should know from this week:
CBA Redistributes 30% of League Shares
In late April, the interim board of the Chinese Basketball Association (CBA) passed a significant resolution which will see them distribute 30% of their shares (worth RMB 8.58 million) in the league between the 20 CBA teams. This move will increase the shares held by each competing team from 3.5% to 5%. This is the biggest step taken since Yao Ming assumed office as the chairman of Chinese Basketball Association earlier this year. It sets the trend for the CBA to transition from a government-dominated system to a more commercialised model, like the NBA. Read More on NetEase
Guangzhou Evergrande Taobao FC Lost 812 Million in 2016
Guangzhou Evergrande Taobao FC recently disclosed their 2016 annual report. Annual income was RMB 561 million, an increase of 47.38%. Net profit was negative RMB 812 million, up by 14.83% year-on-year. At present, the total assets of Evergrande Taobao are RMB 1.273 billion. The club’s largest expenses were the coaching team’s salary and player transfer fees. The major income streams were ticket sales, commercials and merchandising.
Read more on China Stock
FAW Toyota Becomes the Title Sponsor of 2017 ICC Beijing Game
In July, Chelsea FC will face Arsenal in Beijing’s Bird’s Nest Stadium as part of the summer’s ICC (International Champions Cup) fixture list. As an active player in sports sponsorships, FAW Toyota will be the title sponsor for this game. Toyota’s SUV model, the RAV 4, will be the focus of their promotion during the event. Read more on iFeng Sports
Alisports Teams Up with AIBA as Global Marketing Partner
AIBA (International Boxing Association) has signed an exclusive global marketing agreement with Alisports, the subsidiary of e-commerce giant Alibaba Group. The strategic partnership follows the signing of a MoU in 2016, agreeing to the development and promotion of boxing around the world. It also includes significant investment into AIBA competitions, media and digital platforms, as well as the creation of an AIBA internet TV channel. Read more on Boxing News
Jordan Brand Sign First Chinese Player
According to Sina Sports, the Nike-owned Jordan Brand signed Chinese basketball player Allen Guo as a sponsored athlete, making him the first Chinese athlete to endorse the brand. Guo plays for the CBA’s Liaoning Flying Leopards and the Chinese national team and is generally recognised as the best point guard in Asia. He is very popular among young generations and has attracted over 1.65 million Weibo followers. Read more on Sina Sports
Chinese Football Association Officer Zhang Set to be Elected to FIFA
As FIFA continue to struggle with their corruption allegations, it is becoming increasingly clear that China’s Zhang Jian has a good chance of being elected to the FIFA Council. Zhang is the vice chief secretary of Chinese Football Association. Media widely hail Zhang’s election as a significant step for China to host the FIFA World Cup in 2030. Read more on Tencent Sports.
Adidas Plans to Open 2000+ New Stores in China in 3 Years
The Greater China area has been the fastest growing market for Adidas. In 2016, the brand achieved a global growth rate of around 14%, significantly less than the 28% it achieved in Greater China. The recently appointed CEO Kasper Rørsted said in a statement that Adidas plans to open over 2000 new stores in China over the next three years. Read More in MadisonBoom
New Chinese Esports Channel Emerges in Wake of Franchising Announcement
In early May, it was announced that China’s LPL (League of Legends Pro League) will abolish relegation and implement a franchise system from the 2017 ‘Summer Split’. On the following day, Tencent, Riot, Perfect World & IPTV announced that they will found an eSports specific channel, ESPTV. It which will broadcast the LPL’s games and other popular eSports, going live as soon as 2018. Read More on DBLTap
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