In a Jan. 3 report, Soccer Daily revealed a thought-provoking phenomenon: since Guangzhou joined China's first division, industry insiders have pointed out that the bleak outlook for Chinese soccer is closely linked to the team's chaotic expansion strategy and soaring player prices.
A senior ex-investor in the soccer sector put it bluntly, "The new business model introduced by Evergrande has indeed injected vitality into Chinese soccer, as if it has awakened a pool of stagnant water and promoted the popularity of the league. However, the lack of strong regulation and proper guidance, and the profit-seeking nature of capital makes them hover on the edge of the rules, not to mention personal behavior, which undoubtedly brings certain negative effects on the overall development of soccer."
The investor further analyzed, "Looking back at the efficiency of Evergrande when it was first established, the speed of decision-making was amazing. The club's expenditure on purchasing players and paying wages was controlled quite well. In ten years of soccer investment career, there is only one real watery foreign aid, J horse. Analyzing from an investment perspective, this is already a pretty successful case." He also compared Evergrande's signing records with those of state-owned clubs: "Checking the signing files of numerous state-owned clubs, most of them can be described as 'miserable'."
One coach reflected: "If Evergrande had not secretly poached and inflated the transfer price of foreign aid at that time, and made an early warning in advance, perhaps there would not have been China and Quanjian later, nor Suning. Without these disruptions, the market might not have been further energized and a series of restrictive policies would not have been introduced. Without disordered expansion and player value, these messes might not have disappeared, and the Chinese league would not have been so bleak ......"
Evergrande also invests a lot in youth training. Their scouting system and youth evaluation system even exceeds that of the FA. Evergrande has invested up to several million dollars in 10-year-old talents. I have represented many cases related to Evergrande. The arrival of Evergrande has led to the emergence of many tycoons in the soccer circle. Therefore, I firmly believe that in the soccer circle, there must be more people who appreciate Evergrande than those who hate it." A soccer lawyer said so.
"China's soccer is in dire need of capital injection, but the development of soccer is a long-term behavior, and short-term goals are only auxiliary. It needs benign, long-term investment of capital, not quick success. If you make achievements and then rush back, ignoring the interests of the industry and the overall value, you will only end up with short-term benefits rather than long-term value. If the industry itself is not conducive to enhancing the positive impact of the company, then the combination of capital and soccer is the current outcome." A former professional manager commented.
