It's well known that running a Chinese Super League (CSL) team is expensive, so how much does it really cost? Annual expenses vary from team to team, but on May 7, Beijing Guoan's news gave people a whole new perspective on the cost of running a Chinese Super League team.
According to the official website of the Beijing Property Rights Exchange, Beijing Guoan Football Club is seeking a 36% stake transfer. Previously, Guoan was 64% and 36% owned by Zhonghe Land and China CITIC respectively. At present, it seems that CITIC, which holds a 36% stake, may have lost interest in soccer. It is worth mentioning that in addition to the equity transfer, Guoan has also been revealed to be required to pay RMB 38.79 million for the execution of the information.
As a Chinese Super League giants, why Beijing Guoan is in the predicament of being executed and equity transfer? Perhaps the answer can be found in Guoan's financial statement. According to the 2020 financial statements released by Guoan, last year, Guoan revenue of 103 million yuan, operating profit of - 1.221 billion yuan, net profit of - 1.209 billion yuan, the operation of a year actually lost as much as 1.209 billion yuan, is the chairman of the Football Association, Mr. Chen boss will say that soccer is a public service, not to pursue the return, which is to smash the money to make a lot of money ah.
With a loss of 1.2 billion, what is the value of the 36% stake that Guoan plans to sell? Losses and equity transfers have become a reality, and the value of this 36% stake in Guoan has attracted the attention of many fans. According to the information provided by the Beijing Property Rights Exchange, CITIC Group listed the transfer of 36% stake in Guoan's low price of only 5.78 million yuan, compared with the previous investment, can be said to be blood money.
Selling off team shares at low prices, here's why.In 2020, the Chinese Super League abolished the de-commercialization of team names, resulting in the disappearance of the advertising benefits of sponsors, and many Chinese Super League teams had to re-find sponsors or lower their sponsorship fees, leaving the teams in a difficult situation.
The current low price of Guoan shares may also give the FA a wake-up call, limit the salary is right, but to go to commercialization may be too early for the Super League does not yet have the function of blood production. The pace of this reform may be too big, the Football Association should perhaps hold off or introduce other measures to help these teams, otherwise the Super League bosses may really have to be like a treasure poster wrote: "Super League team stagnation, help the bosses."
