BIG (author Zhang Liujing)
Evergrande Taobao has taken the initiative to delist! Although this NEEQ listed company, known as the “first share of Asian football”, is proud of the game, its performance in the capital market has not been satisfactory. In a few years, the amount of losses has exceeded 7.5 billion. Does this also indicate that the current club’s traditional profit model is not yet sound?
[Hengda Taobao Active Delisting]
For fans, the name Evergrande Taobao could not be more familiar. Since its establishment, Guangzhou Evergrande Taobao has won a total of 17 championships, including two AFC championships and eight Chinese Super League championships. It is recognized as one of the most influential professional football clubs in Asia.
Recently, this new third board listed company issued a delisting announcement, announcing its voluntary delisting. The
announcement stated: "In order to adapt to the company's new development strategy, further focus on the main business, and achieve mid- and long-term goal planning, after careful consideration, it is proposed to apply for the termination of the company's stock in the national SME share transfer system."
In November 2015, Guangzhou Evergrande Taobao Club was also listed on the New Third Board and was hailed as the "first share of Asian football."
However, behind the honors, the performance is terrible.
On March 1, 2010, Evergrande Group bought out all the shares of Guangzhou Football Club for 100 million yuan. The club officially changed its name to "Guangzhou Evergrande Football Club", opening the "Golden Dollar Football" route, and bringing in foreign aid and coaches heavily. From 2013 to 2014, Evergrande Taobao lost 576 million yuan and 483 million yuan.
Although Evergrande is very large, it can't stand such "burning money."
Later, Xu Jiayin came to Jack Ma. In 2014, Evergrande Club received a capital injection of 1.2 billion yuan from Alibaba, and the club was renamed "Hengda Taobao Football Club". After Ali's capital injection, a group of capital such as Suzhou Gold Mantis and Keshun shares followed suit, optimistic about the future of the football club.
However, in the first year of listing on the NEEQ, Evergrande Taobao “slapped the face”-losing 953 million yuan, equivalent to the sum of the previous two years. This is not over yet, Evergrande Taobao has never made any money from the beginning to the end: a loss of 800 million in 2016, a loss of 986 million in 2017, a loss of 1.8 billion in 2018, and a loss of more than 1.9 billion in 2019...
According to statistics, from From 2013 to 2019, the total loss of Guangzhou Evergrande Taobao reached 7.583 billion yuan in these 7 years, and the average annual loss is nearly 1.1 billion yuan.
[How does football club burn money? 】Z9z
According to the assumption when it landed on the New Third Board five years ago, Evergrande Taobao Football Club should start to make a profit in 2016. However, this looks more like a "yellow beam dream."
Where did all the money go? Of course it is still on the players. It is understood that the main expenses of the club are team expenses, amortization of player technical assets, and game costs, which together account for more than 90% of operating costs.
Among them, the team expenses include the wages of the player coaches and the food, clothing, housing and transportation. In addition, Evergrande Taobao also has a top-level nursing team. These expenses are the basis of the team. The amortization of player technical assets includes the amortization of the cost of introducing players during the current year. Behind the good results of
is the competition of money. Evergrande Taobao has repeatedly stated that the salary and transfer costs of introducing coaches and players are still at a relatively high level, resulting in the company's current loss. Z1z
big game BIG observers noticed that in 2019, Evergrande’s introduction of Exxon, Goulart, Alan, Luo Guofu, and Fernando cost as much as 870 million yuan, accounting for one third of last year's total expenditure.
In the first half of 2020, Evergrande Taobao continued to lose 1.052 billion yuan.
Evergrande Taobao said that due to the impact of the new crown pneumonia epidemic, no events were held in the first half of the year, and the company's revenue fell sharply. At the same time, player salaries and transfer costs remain high, and the company's operating costs are still at a relatively high level, resulting in losses.
[The profit model is not yet sound]
The sports industry has always been a hot spot for investment. What channels do football clubs earn from?
Judging from international practice, the income of football clubs mainly comes from tickets, radio and television and network broadcasting rights, and commercial operations, accounting for an average of about 45%, 35%, and 20%. z1In recent years, commercial operating income has gradually surpassed ticket income and has become a source of growth for club income.
For example, in 2018/19, Barcelona’s main revenue proportions are: tickets 21%, broadcasting 35%, commercial operations 44%; Paris Saint-Germain’s main revenue proportions are tickets 18%, broadcasting 25%, and commercial operations 57% ; Bayern Munich’s main revenue accounted for 15% of tickets, 34% of broadcasting, and 51% of commercial operations.
For a long time, domestic clubs have mainly relied on tickets and broadcasts, and their income accounted for only about 10%. In terms of commercial operations, especially peripheral operations, there is almost none. For Evergrande Taobao, the main business model and profit model of
are: invest funds to operate professional football teams, participate in various professional games, and maintain public relations through good athletic performance, gain massive fans and audiences, and improve The brand value of the club forms a sustainable business ecological platform.
is based on the above-mentioned commercial ecological platform, and then sells game tickets, fan merchandise, etc. to fans to obtain sales income, and helps advertisers to place advertisements to target audience groups to obtain advertising income or other authorized income.
Currently, Evergrande Taobao's revenue mainly comes from tickets, peripheral products and advertising. However, its various costs and expenses exceed total revenue. In 2019, Evergrande Taobao’s main business income was 780 million yuan, while the main business cost reached 2.4 billion. Loss is the norm, and no loss is an accident.
[What to do after delisting? ] Z9z
According to Evergrande Taobao’s 2020 semi-annual report, the largest shareholder of the football club is Evergrande Real Estate Group, accounting for 56.71% of the total share capital, and Alibaba (China) Network Technology Co., Ltd. accounting for 37.81% of the total share capital.
According to reports, Evergrande Taobao took the initiative to delist from the NEEQ, which may be related to Evergrande Taobao's transformation of its development strategy.
On the one hand, Evergrande Taobao is committed to "rejuvenation", further strengthen the training of young football players, and accelerate the promotion of club talent training and team building.
At the 2020 club management meeting, Evergrande boss Xu Jiayin further emphasized the "younger war": in the past two or three years, the club has made great efforts in rejuvenation construction, and the replacement of new and old has been completed very well. This is also for the club's long-term strategic development needs. We must make persistent efforts to further strengthen the training of young players.
At the same time, Evergrande Football School has strengthened the training of young players. It is understood that starting from 2018, Evergrande Football School has fully implemented the "all elite, all free" training model, with a net investment of over 100 million yuan per year.
On the other hand, Evergrande pays more attention to the construction of football infrastructure in the football field. Among them, the construction of the world's largest Guangzhou Evergrande football stadium has started in April 2020, and the world-class Evergrande club training base has been newly opened this year. .
[Big-name viewpoint: the development of profit channels for domestic football clubs is not perfect enough]
Foresight Industry Research Institute pointed out that in the value chain of the football industry, football clubs are the most valuable. Football clubs form a league of events to achieve economic benefits through the sale of event tickets, the sale of broadcast rights, the development and authorization of derivatives, and sponsorship. There is still a lot of room for future development.
However, at present, the development of profit channels of Chinese football clubs is not perfect, and they are basically at a loss. In addition, the player's high salary level has also dragged down the club's development.
The income of the more mature foreign football clubs mainly includes commercial development, match day income and television broadcast income. The main source of income for domestic football clubs is commercial income (sponsorship fees), which accounts for about 60%, followed by player transfer income (about 10%) and ticket income (about 6%). Television rights income only accounts for About 1% of revenue.
"my country's sports event industry is still in its infancy stage of development. At present, the biggest driving force for industrial development lies in the strong support of top-level national policies, and the industry itself needs to further improve itself." Economic observer Han Jun believes that the current competition performance In the industry structure, the sales of tickets and derivatives account for only a small percentage. Even top football and basketball clubs have very few examples of profitability from the sports industry. The main reason is the parent company's capital injection and the search for sports advertising effects.
(think about itFor more information, please follow the WeChat public account "BIG")
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-