Wang Jianlin can't help but vomit, how much does it cost to invest in overseas football?

Investing in football "burns money every year, but it is difficult to make money", Wang Jianlin, chairman of Wanda Group, once said.

In recent years, China Capital has set off a wave of "buying while buying" in overseas football market: Wanda Group invested 44.98 million euros to acquire 20% shares of Atletico Madrid in La Liga, Suning Sports Industry Group invested 270 million euros to acquire about 70% shares of Inter Milan, and China Europe Sports Investment Company invested 740 million euros to acquire about 99% shares of AC Milan. ...

Different from the long-term and long-term planning, the short-term risks faced by the acquisition of overseas clubs have to be prevented, and the financial crisis of the club itself and the lack of management experience of investors in China need to be paid attention to.

"Sweeping Goods" Overseas Football

The favorable domestic policies, coupled with the overall depression of overseas football clubs and poor general operating conditions, have contributed to the best opportunity for China's capital to go out to sea to sweep goods, and also brought historical opportunities for the development and reform of football in China.

Since last year, China Capital has started to "expand its territory" in the overseas football market. According to incomplete statistics, in 20 15, there were 33 overseas mergers and acquisitions of football clubs, with a total investment of nearly 40 billion yuan, an increase of 50% over the previous year and an increase of more than three times.

On 20 16, the club's overseas acquisitions showed a blowout growth. From 2065438 to August 2006 alone, there were three overseas acquisitions of clubs. On August 5th, China-Europe Sports Investment Management Company announced that it had signed a contract with Italian company Fininvest, and spent 740 million euros to acquire 99.93% equity of Serie A giants and Rossoneri AC Milan Football Club. On the same day, Yi Yun International (Shanghai) Sports Development Co., Ltd. announced the acquisition of Premier League West Bromwich Club Holding Company. Olkin Packaging Co., Ltd. announced the acquisition of 59.95% equity of French Oszer Football Club for 7 million euros. Not long ago, Suning Group announced that its Suning Sports Industry Group would buy about 70% of the shares of Inter Milan Club for a total consideration of 270 million euros. This is the first G 14 football club acquired overseas by private enterprises in China.

Giants have invested in overseas football clubs, which is closely related to the trend of domestic policies. 2065438+February 2005, the central leading group for comprehensive deepening reform deliberated and passed the overall plan for football reform in China, and then the "Thirteenth Five-Year Plan" for sports industry development was implemented. According to the plan, the development goals during the 13th Five-Year Plan period include that the total scale of the sports industry exceeds 3 trillion yuan, the number of employees exceeds 6 million, and the added value of the industry accounts for 1.0% of GDP, and the separation reform mode of "ownership belongs to the state and management belongs to the company" will be promoted to encourage the development of professional alliances.

In this context, overseas clubs are also very optimistic about the China market. According to the data of consulting firm PricewaterhouseCoopers, in 20 15, the total revenue of sports tickets, commodities and advertisements in China is estimated to be $3.4 billion, which is only 5.3% of that in the United States ($63.6 billion), and there is huge room for growth.

The Economic Information Daily reporter combed many mergers and acquisitions and found that Chinese overseas "crazy shopping" has set foot in the world's top leagues such as Premier League, La Liga, Ligue 1 and Serie A, including individual contributions from Jiang and other large enterprises such as Suning, as well as crowdfunding model consortia, a small number of which have been laid out in the sports industry before mergers and acquisitions.

Zhang, chairman of Suning, said that the acquisition of Inter Milan is an important part of Suning Group's layout of sports industry; It will also help Suning Football Club to comprehensively improve its technical system and operational capabilities; At the same time, it is also an important part of Suning's global layout. Suning will actively use the global popularity of Inter Milan to help Suning expand overseas markets.

From 20 13, Suning strategically invested in PPTV, and its PPTV sports is the most important online live broadcast platform for sports events in China. In June of the same year165438+1October, Suning took over Jiangsu Suning Football Club and officially entered the sports industry; In May 20 16, Suning invested in Chuangbing Technology, a sports data operation platform; In June, Suning Sports Industry Group was established.

Burning money is easier than making money.

Different from the long-term perspective, the short-term risks faced by the acquisition of overseas clubs have to be prevented. Wang Jianlin, chairman of Wanda Group, once said: "Investing in football can bring you influence, but it won't make you money. Burn money every year, that's for sure. This will really attract attention, but it is difficult to make money. "

Investing heavily in overseas football industry is undoubtedly a great confidence in the development of football and sports industry in China. Comparatively speaking, China's sports industry started late and has a small share. It is indeed possible to achieve "overtaking in corners" through overseas mergers and acquisitions, and it will occupy a place in the future industrial layout.

Analysts believe that Chinese-funded overseas football clubs can enhance their brand influence and performance by virtue of their commercialization ability. Yao Zhenyan, vice president of Ouxun Sports, said that the investment cycle of sports industry is long and the return is slow, but the derived brand value and advertising value cannot be directly measured by the return on investment.

Wang Shiyu, chairman of Guo Fu Fumin Investment Group, said that the potential opportunity to acquire Inter Milan, for example, is very valuable. First, at least 270,000 to 300,000 China tourists visit Italy every year, which will bring a lot of ticket revenue to Inter Milan. Second, the related derivatives of Inter Milan brand, such as shoes, clothing and daily necessities, will bring advertising revenue and will continue to expand after docking with the China market. At the same time, Suning will also strive to become one of the internationally renowned brands with the help of Inter Milan.

The reporter of Economic Information Daily learned that, generally speaking, there are three sources of income for football clubs: match day income (tickets and surrounding areas), TV broadcast income (domestic and intercontinental events) and commercial income (sponsors, product sales, stadium tourism and other commercial activities).

According to Deloitte's data, from 20 14 to 20 15, the Premier League earned 7180,000 euros, the Bundesliga earned 3160,000 euros, La Liga earned 264 million euros, Ligue 1 earned 35 million euros and Serie A earned 133. The reason why Serie A ranks at the bottom is that its income is too dependent on the copyright fees for TV broadcasting, while the development of other commercial rights is obviously insufficient. The salary expenses of players are too high, reaching 72% of the total income, far higher than other leagues. Even if the English-German Western League is still in a profitable state, the "gap between the rich and the poor" between clubs is relatively large.

According to industry insiders, the potential value of football clubs will only be released if the ranking of events rises. In the later period, we should continue to invest in signing players and coaches and strengthen operational management. After enterprises invest in shares, multiple risks still need attention.

On the one hand, the financial crisis may become a burden for enterprises. Flynna, CEO of Shao Chen Group, a one-stop service provider of cross-border capital M&A in China, said that most overseas football clubs are heavily in debt and generally face capital chain problems. Suning acquires Inter Milan, and Suning will bear a huge debt of 400 million euros; China consortium bought AC Milan for 740 million euros, including 220 million euros of club debt.

Flynna said that overseas clubs pay more attention to China, a big market, and take the opportunity of merger and acquisition to achieve greater development. However, clubs are mostly intangible assets or liquid assets, and it is still unknown whether docking with China market can achieve the expected results. Moreover, due to many problems of the club itself, it is still very difficult to make a profit in the short term. It will take China enterprises at least three to five years to gradually realize normal cash flow.

On the other hand, the complex market environment tests the ability of the acquirer to cope. Wang Shiyu said that a country's football club is often associated with the feelings of local people. If it is not handled properly, it is likely to trigger a rebound in public sentiment, even discredit China's image and affect other China enterprises' overseas acquisitions.

After Heli Wansheng acquired The Hague Club, the accounts were not due in time, which caused negative public opinion. Later, foreign media reported this incident and thought that Heli Wansheng was just the boss and did not fulfill his obligation to contribute to the rise of The Hague, which caused the rejection and dissatisfaction of local fans in The Hague.

Lu, vice-president of the Italian Cerese Club, said that after China entered the "Milan Twin Heroes", he must first learn to deal with the local government. The two clubs use a stadium belonging to the municipal government. This stadium * * * has more than 5,000 employees, and the monthly salary expenses are more than 2 million euros, most of which are borne by two clubs. They must build their own stadium like Juventus and get rid of the burden shared by the municipal government through the stadium.

At the same time, China Capital lacks management experience in overseas sports clubs. Yan Liu, deputy director of China Minsheng Investment Co., Ltd. said that most overseas M&A clubs in China are cross-industry mergers and acquisitions and have no club management experience. Compared with physical assets, club management needs a systematic management system, including hiring scouts, coaches and executives. It is very important to form a team.

Insiders pointed out that China Capital generally holds a view that only by having the absolute right to speak can it enrich its industrial layout and expand its brand influence overseas with the help of football, so the proportion of China Capital Holding Clubs is relatively high. If you want to do it, you have to be a major shareholder, which is also the expansion mentality of many China capitals. But in fact, in Europe and America, the owner of the club basically belongs to a sponsorship role, and the management is mainly carried out by an independent team, which is not consistent with the traditional concept of China enterprises. Therefore, when China capital buys a team overseas, it should not only make financial preparations, but also adjust its concept and make psychological preparations.

China market needs to be stimulated.

Jin Zhiyang, a famous football player in China, shouted loudly at a football seminar. Now a large amount of domestic capital flows to foreign football. Can some favorable policies be introduced to guide funds to bargain-hunting China football?

In China, sports is becoming one of the biggest industries for healthy consumption in China. It is an inevitable trend of the global football industry to combine football, the largest sport in the world, with China, a huge football market in the future.

However, on the other hand, the capital goes out to sea one after another to March into the mature international sports industry, which not only proves the strength of China's economy, but also reflects the weakness of China's football and the lack of capital absorption capacity. At the key grassroots level, there is even a lack of funds.

Bao, director of the Sports Social Science Research Center of the Sports Science Research Institute of the State General Administration of Sport, said that the development of the sports industry needs to be based on local conditions and stimulate the vitality of its own sports industry, and the acquisition of overseas clubs is largely a capital act, and it remains to be seen whether it can really promote the development of the football market in China.

How to "feed back" China football after capital export? According to the analysis of insiders, the most intuitive way is to help China players get through overseas training opportunities and improve the level of domestic youth training.

The reporter combed China Capital's acquisition of overseas clubs, and almost every investment included the youth training system of "feeding back" China football. In addition to building training bases in China and introducing advanced foreign training concepts and systems, some clubs also promise to send more outstanding young football players abroad for training.

After the acquisition of Inter Milan, Zhang said that through exchanges and integration with Inter Milan, Suning Football Club will be able to comprehensively improve its technical system and operational capabilities in the future. Inter Milan's advanced football management concept, scientific training system and youth training echelon can help Jiangsu Suning Football Club to lay a solid foundation, improve its performance and enhance its core competitiveness.

Zheng Nanyan, chairman of Platinum Group and founder of 7 Days Hotel Chain, acquired 80% shares of Nice Football Club in France through joint acquisition with Chinese and American investors. This team has made rapid progress in the past three seasons, and there are many potential stars. There are as many as eight players under the age of 22 in the Nice first team.

During the investment negotiation, Zheng Nanyan and his team had a deep understanding of the youth training system in Nice. "Nice is one of the most famous clubs in the football youth training system in France and even Europe. The age of team players from 18 to 19 are all from the youth training system. The youth training plan is complete and detailed, and there are many unique features in selecting players. This is undoubtedly of far-reaching significance to how to select and train young players in China football in the future.

In fact, before this, some European clubs were eager to sign contracts with China players, which is undoubtedly an effective way to promote their brands in China. But at present, China football does not have such candidates and conditions. Zheng Nanyan said: "At present, the transfer fee of good players in the United States is very high, but there is still a gap with the level of excellent players in Europe and the South, so we will not consider introducing French players to play in for the time being."

According to industry insiders, it is by no means a one-off event for youth training to produce results; It will take time to test what changes China capital can bring to China football. If the commitments and ideas of overseas football clubs in youth training can be realized one by one in China, it at least shows that China football can benefit from the operation of capital.

The road to benign management

The internationalization of China's football and sports industry is not only a matter of "a stroke of a pen", but also a matter of spending money. More importantly, it is necessary to improve the relevant sports industry policies at the national level, form a linkage effect with overseas clubs, and accelerate the training of professional sports management talents in line with international standards.

Wang Shizhen said that the football industry is an economic and ornamental sports event, and the content of high-quality events plays a great role in the formation of the industrial chain and the expansion of the profit model. At present, many private enterprises have accelerated the acquisition of overseas clubs, indicating that the policy has achieved initial results in promoting industrial development. "While improving the policies and guidelines for promoting the football industry, it is also necessary to form a linkage effect with overseas acquired clubs to help the entire sports industry shift from low value-added sports product sales to high value-added event operation, media communication and international brand promotion." He said.

Zhu Xiaodong, CEO of Ouxun Sports, said that European football clubs have experienced scouting system and youth training system and are eligible to participate in the top leagues in Europe. He suggested that overseas and domestic clubs can be opened, and on the basis of checking the quality of players, excellent domestic players can be selected to participate in youth training in overseas clubs, giving domestic players more opportunities for growth; At the same time, players from overseas clubs can be hired to China in the form of "loan" to enliven the China League.

Some insiders said that enterprises need to find a good balance with cultural values while pursuing commercial interests. Yan Liu, deputy director of China Minsheng Investment, said that Inter Milan and AC Milan, for example, have strong influence in Europe, and the integration of China shareholders will inevitably lead to the infiltration of China culture. China investors need to focus on how to make the European market recognize China's values and culture, and at the same time make the capital investment of enterprises achieve the expected communication effect. From the perspective of local people, avoid "forced implantation" in foreign cultural exchanges and do a good job in communication with local people.

In addition, we should guide enterprises to strengthen the research on club management. Wang Shiyu said that there is still a gap between the management level of enterprises in China and that of developed countries. Enterprises can maintain the decision-making power of the board of directors on the one hand, and ensure the original management level and management rules of overseas clubs on the other hand, so as to prevent unnecessary troubles caused by the conflict between ideology and management mode. At the same time, strengthen the cultivation of professional sports management talents in line with international standards.

Aylado Piwa, CEO of Hengdian Group in Europe, suggested that an office with a reliable team should be established as soon as possible after the acquisition of the club, and a group of employees who are familiar with local laws and regulations should be activated instead of looking for local managers temporarily.