On March 17, 2015, the State Council released the "General Plan for the Reform and Development of Chinese Football," marking a significant turning point in the football industry. This plan not only aims to promote football development but also encourages private capital to play a more active role in the sector. By optimizing club ownership structures and promoting diversified investment from governments, enterprises, and individuals, the initiative seeks to create a more sustainable and dynamic football ecosystem.
The plan highlights the importance of investing in infrastructure such as stadiums and venues, with special policies on land use, taxation, and finance to attract social capital. It also emphasizes the need to improve the operational efficiency and overall benefits of these facilities. Furthermore, it encourages well-known companies and individuals to invest in professional football clubs, sponsor events, and support public welfare projects, which can significantly enhance the financial resources of football organizations.
In addition to infrastructure and investment, the General Plan also promotes the development of football lottery tickets and the establishment of a competitive market for television broadcasting rights. Innovations in how football events are broadcasted and promoted are encouraged, including the integration of traditional and new media platforms to boost revenue streams.
Experts believe that while the plan is a positive step, its success depends on effective implementation. Comparisons with Japan and France, which have long-term football strategies and substantial investments, highlight the need for sustained commitment. With football reform, other sports may also follow a more market-oriented approach.
According to Industrial Securities, the football industry holds a dominant position within the broader sports sector. In 2009, global football accounted for 43% of all sports, making it the largest sport worldwide. However, China's football industry lags far behind, with the Premier League's revenue being 49 times that of the Chinese Super League. The main issue lies in administrative control, and there is considerable potential for growth if the industry becomes more market-driven.
With the introduction of the General Plan, the sports industry as a whole is expected to benefit. The State Council has already outlined goals to develop the sports industry as a green and emerging sector, aiming for a total size exceeding 5 trillion yuan by 2025. This will not only drive economic growth but also promote healthier lifestyles and increased consumer engagement.
As the market opens up, more companies are expected to enter the sports industry through mergers and acquisitions. Just as mobile gaming saw a surge in M&A activity in 2013 and film and TV in 2014, 2015 is anticipated to be a breakout year for sports-related deals. Companies with strong resource integration, light asset management, and big data capabilities are poised to gain significant advantages in this evolving landscape.
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