Chinese firms set to join FIFA

Two companies from China are expected to join property giant Wanda Group as top sponsors of world football's governing body

Chinese companies' interest in investing in football globally has been surging due to the sport's huge business potential, experts say.

Besides the Beijing-based Wanda Group, the world's largest property developer, two more Chinese companies will sign up as FIFA partners this year, Wang Jianlin, chairman of Wanda Group, disclosed on March 21.

"As far as I know, if everything goes smoothly, another two Chinese companies will become FIFA's top-level sponsors this year," Wang told a news conference, without disclosing details.

Wanda Group has signed a top-level sponsorship contract with FIFA, according to a statement by the world football governing body on March 18. The contract will grant Wanda the highest level of sponsorship rights, which will be valid for 15 years and includes the next four FIFA World Cup finals, the statement said.

"Chances of China qualifying for the World Cup will become brighter with more Chinese companies becoming FIFA's sponsors," Wang says.

The cooperation between FIFA and Wanda, Wang stressed, is not a money-for-fame deal but includes a package of agreements that will help promote the development of football and the whole sports industry in China.

There are only eight seats for top-level sponsors of FIFA globally, with US companies heavily represented. Wang says barring any accident, Wanda and two other Chinese companies will sit at the top spot with Adidas, Coca-Cola, Gazprom, Hyundai Motor, and Visa Inc.

The financial size of the partnership has not been revealed but is believed to be one of the biggest in FIFA's history.

Wang says with economic development in China, the company has spotted the great potential of football, which he believes will catch up with Europe soon.

"Football is the most popular sport in the world. This fact will not be affected by the temporary scandals," says Wang, alluding to corruption charges leveled against the football body. He says now is a great opportunity for Chinese companies to get involved with the industry around the world.

Zhang Qing, CEO of Key-Solution Sports Consulting, agrees.

"Chinese companies see opportunities in the crisis, and now is a good time to make global purchases," he says.

Shanghai Xiaoyuan Culture Communication Co, for instance, announced a 180,000 pound ($259,000; 230,130 euros) investment in British football company Freestyle Football Ltd on March 17, the latest significant Chinese football investment in Europe. Freestyle involves the display of athletic and acrobatic tricks performed with a ball.

English Premier League club Manchester City sold a 13 percent stake to a Chinese consortium consisting of China Media Capital and Citic Capital in December for 265 million pounds, valuing the club at 2 billion pounds.

In Spain, Wang of Wanda Group paid $52 million for a 20 percent stake in La Liga football club Atletico Madrid in January 2015.

President Xi Jinping's stated ambition is for China to become a football "powerhouse" and create a domestic sports economy worth $850 billion by 2025.

Simon Chadwick, a professor of sports enterprise at the University of Salford, says Shanghai Xiaoyuan needs to work hard to take advantage of the recent development of football in China in order to benefit from their investment.

"We know that people like freestyle football but are perhaps less engaged with it than the mainstream one. The onus is therefore on the company to find ways in which freestyle football can rise from the shadow of mainstream football while also aligning itself more closely with it."

As a market, China is investing significantly in the sport of football and related areas, with the government and leading organizations working in tandem to ignite a thriving industry.

In October, Shanghai is set to play host to the second stage of the Freestyle Football World Championship Tour 2016. The event will see the top 16 global freestylers showcasing their skills to a panel of judges, with the aim of gaining the most points ahead of the final event in Melbourne, Australia.

In 2014, 154 million people tuned in live to Chinese TV networks to watch the Freestyle Football Beijing World Tour event.

Contract the writers through huyuanyuan@chinadaily.com.cn

(China Daily Africa Weekly 03/25/2016 page25)