Evergrande has invested 96 million yuan in the Chinese Super League in the 2016 season. It was eliminated from the AFC Champions League group, so it only invested 17 million yuan. Coupled with various cup competitions, Evergrande's annual investment has reached 120 million.

In 2016, Elkerson left the team and J. Martinez joined.

42 million euros.

Equivalent to RMB 315 million.

Total investment, 425 million.

And what is their revenue this season? Counting advertising, tickets and peripherals, the revenue is 52 million US dollars, which is about 350 million yuan when converted into RMB.

The Chinese Super League champion will receive a bonus of 70 million.

A total of 420 million.

Evergrande still lost money. In addition, the youth training was slow to produce results and the initial investment was relatively large, let's count 40 million. The AFC Champions League failed early and there was no continuous investment.

Evergrande is considered the best among domestic clubs, but it still suffers losses.

However, Evergrande has successfully created its own brand effect by leveraging the strength of its football team. The amplification of its own brand cannot be summarized by 1 billion.

Coupled with Xu Jiayin's intention to enter politics, the money was spent quite well on his part-time job.

No matter what they say, Lao Xu has really given Chinese fans a shot in the arm.

To know.

The 5-1 friction against Jeonbuk Hyundai made many people return to the TV.

Player background. The reason why the Chinese men's football team earns a lot of money domestically is mainly due to the background of the players. The reason is, with such performance, how much domestic ticket revenue and advertising revenue will it generate? Maybe more sponsorships. If you are right,...

Judging from the books, almost all of them are losses. You must ask why they have to do all the things at a loss to make a profit. In fact, they are really just to make a profit. Just made it.

Let’s take a look at the annual financial reports of each Chinese Super League at the beginning of last year. The Chinese Super League is becoming more and more influential internationally, but it is all earned. Only by calculating the books can we know where the future of the Chinese Super League lies.

Where will the Chinese Super League’s money-burning game go?

The audit partner of the Chinese Football Association is the famous accounting firm PricewaterhouseCoopers. Survey data shows that in the 2016-17 season, the 16 Chinese Super League clubs had revenue of RMB 7.082 billion, but their investment was even higher, RMB 11.014 billion. In one season, the overall floating loss was approximately RMB 4 billion, with an average loss of RMB 250 million per club. Compared with the local tycoons of the Chinese Super League, the losses of the Chinese League One clubs are only more than 800 million yuan. However, compared with the Chinese Super League's annual revenue of more than 7 billion yuan, the Chinese League One's revenue is only 1.092 billion, while the expenditure reaches 1.915 billion, and the loss is even worse than the Chinese Super League.

The financial reports of the Chinese Super League clubs show that commercial sponsorship accounts for 64% of total revenue, event broadcast revenue accounts for 14%, player trading revenue accounts for 11%, government subsidies account for 6%, and match day ticket revenue accounts for 3% , other income accounts for another 2%. Among the expenses, labor costs, namely player and coach salaries, accounted for 67%, player asset amortization accounted for 18%, youth training costs accounted for 5% (the new policy was not implemented last season), management fees, game operations and other costs accounted for 10%. %.

Labor costs are the salaries of players and coaching teams. According to data provided by the British media, the average annual salary of Chinese Super League players is as high as US$780,000. Following the five major European leagues, it has become the sixth-highest paying league in the world. However, the revenue capabilities of the Chinese Super League are not the same as those of the five major leagues. We must know that the Premier League, which has the greatest salary pressure, has labor costs only accounting for 58% of the overall expenses, and the Bundesliga only accounts for 42%.

Let’s take a look at the 2018 annual reports of several clubs

Last year’s champion Shanghai SIPG: SIPG’s annual report shows that SIPG’s revenue in 2018 reached 2.33776 billion, with operating The profit was -27 million, and the net profit was only 1.84 million yuan. SIPG Club's ability to "turn losses into profits" in 2018 is mainly related to a 30 million bonus from the Shanghai Sports Bureau.

Guangzhou Evergrande Taobao Club announced its 2018 annual report. Evergrande’s operating income last year was 600 million, but operating costs reached 2.43 billion. Among them, Evergrande paid 375 million (approximately 50 million euros) to buy out Paulinho from Barcelona, ??while Evergrande paid Benfica 276 million (approximately 36 million euros) for Talisca. A loss of 1.8 billion.

So let’s see what these clubs earn?

In 2009, before Evergrande took over the Guangzhou Football Club, its contracted sales were 30.3 billion yuan and 551.3 billion yuan. The sales target for 2019 was set at 600 billion yuan, which can be said to be 10 years. Evergrande Group is a well-known local enterprise that has become one of the top real estate companies in the country.

In 2015, Shanghai SIPG acquired the Shanghai East Asia Football Team. The SIPG Group’s net sales profit that year was 6.776 billion yuan, which brought the net profit to 11.5 billion yuan in 2017.

There is also an MLM company, I won’t name it. How many people know about this company if they don’t invest in football?

This is why they lose money and make money.

From a club perspective alone, they should all be losing money. The income of Chinese Super League clubs mainly includes: tickets, sponsorship from sponsors, TV broadcast sharing, league share, etc. The current operating expenses of Chinese Super League clubs are as high as hundreds of millions or even billions a year, and they are all losing money on their books.

Although the club is losing money, the parent company behind the club has gained exposure through operating the team, promoted the company, and increased its visibility, which is equivalent to advertising. Nowadays, the advertising fees of CCTV or front-line local satellite TV can easily reach hundreds of millions.

Evergrande Group, Zhonghe Group, Jianye, China Fortune Land Development and other companies have greatly improved their reputation by operating teams, enhanced the company's image, and can also obtain various resources directly and indirectly. If we calculate the general ledger, these companies still make money.

According to statistics, the current investment expenses of Chinese Super League clubs have ranked sixth in the world, second only to the five major European leagues. This is one of the reasons why domestic fans ridicule the Chinese Super League as the sixth league in the world. But the ranking of investment is in sharp contrast to the world ranking of the national football team. From this aspect, the Chinese Super League is still a bit too big a bubble.

Personally, I feel that in the next step, the Football Association and the Chinese Super League clubs should work hard on operations, give players appropriate salaries, not be too flattering, strengthen youth training and other infrastructure, interact more with fans, and enhance The stickiness of the team and fans will increase their income level. Only in this way can Chinese football develop healthily and sustainably.

Looking around the world, at least the five major leagues, 90% of them lose money. Player income, taxes, stadium maintenance, publicity, etc. are basically all losses. The main way for clubs to make money is advertising and sponsorship. , fan peripherals, and some also include fan membership fees and so on. I won’t go into details about the benefits and losses of transfers out and in.

There is also an invisible value called brand value, such as Evergrande in China. Only actuaries can accurately estimate this, and it is an intangible value. Another example is Arsenal and AC Milan. No matter how bad their brand value is, their brand value is not low.

But it must be said that football is a money-losing project. To put it crudely, it means losing money to make money. But there is one club that is not taking the usual path, and that is Arsenal. Counting from the time Henry left, they sold their captain and fought for four Champions League places. In addition, the Premier League has grown vigorously in those years. Arsenal has paid for transfers, broadcast fees, fans, and the Champions League. The bonus is a rare profit! It's also a weird one.

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