Why can't Jinyuan football save Chinese football?
April 24th, 2022

No surprise, China lost to Japan again and will say goodbye to the world cup again. With Evergrande falling into debt crisis, the honeymoon between real estate and football has completely ended. A dream of ten years, Jinyuan football era ended, and Chinese football still hasn’t changed for the better. Today’s “I don’t understand” takes you to the beginning and end of the influx of capital into football. Why can’t burning money save Chinese football? Is Evergrande to blame?

Salary arrears, dissolution, suspension of training, departure of foreign aid, withdrawal from the game. This is the key word of this year’s CSL. In just ten years, from the Asian championship to the sixth largest League in the world to the autumn of crisis, the attention of CSL has fallen to the bottom. What happened? After ten years of splendid “golden yuan”, the Chinese Super League has now collapsed and returned to the origin. I don’t understand today. Let me show you why Jinyuan football doesn’t work in China?

In 2010, Xu Jiayin copied the bottom of Guangzhou football for 100 million, officially opening the prelude to Jinyuan football. Konka, murich, Gao Lin, Zheng Zhi and other famous domestic and foreign aid have joined the team one after another.

At this time, his personal wealth was 6.28 billion yuan, ranking 86th on the Forbes rich list.

Konka, murich, Gao Lin, Zheng Zhi and other famous domestic and foreign aid have joined the team one after another.

Why do you play football? Boss Xu was in high spirits and explained,

“For example, if we advertise on CCTV, it will cost about 150000 yuan a second. For example, on April 2, the opening ceremony of the China Super League was held in Guangzhou, which was broadcast live by 25 TV stations and reported by more than 300 media. 11 athletes wore vests printed with the word Evergrande. Do you think it is very valuable?”

In 2013 and 2015, Guangzhou Evergrande won two Asian Championships in three years.

It was also during this period that Evergrande became one of the top three real estate enterprises in China from a regional enterprise.

Evergrande’s success injected a boost into the CSL. In 2016, capital such as Huaxia happiness, Suning, Greenland, Shanggang and Quanjian swarmed in, and Jinyuan football entered the stage of chaos.

At its peak, 15 of the 16 Chinese Super League teams relied on real estate. In one sentence, they played football and sold houses.

Those who burn more money are the latecomers.

In 2016, Brazilian players hulk and Oscar joined Shanghai and Hong Kong for a transfer fee of more than 50 million euros. In addition to the sky high transfer fee, Hulk Oscar’s annual salary exceeds 20 million euros. It is worth mentioning that at that time, the chairman of Shanghai was Chen Xuyuan, the current chairman of the Football Association.

In 2017, a Chinese player who played in La Liga for 8 minutes was sold at a high price of 150 million yuan.

A national left back reportedly asked for 80 million yuan of signing fee. The name of the successor behind these two transactions is called Huaxia happiness.

In 2017, half of the world’s top 20 paid football players were in the CSL, and there were $$$$$$$$$$$$. Who can’t buy any players? The media shouted that the world’s sixth League was coming.

This year, Xu Jiayin’s personal wealth also soared with the east wind of real estate. On the Forbes China rich list in 2017, Xu Jiayin became the new richest man in China, with a net wealth of more than 280 billion yuan. Burn this money in football, sprinkle water.

Summer window of 2019 season: Evergrande naturalized five non lineage naturalized players, including Exxon, Gorat, Fernando, Alan and luoguofu. According to media reports, the transfer fee, annual salary and resettlement fee of the six naturalized players total 870 million yuan.

In fact, insiders have long predicted that “China’s real estate developers are closely related to banks, and once the capital chain is broken, he can’t afford to play. At this time, the football itself will be over.”

But the state of the clubs at that time was that they spent money, just you? 50 million euros, right? If you buy it first, it doesn’t matter so much!

The epidemic hit the economy hard in early 2020. The Chinese Super League was changed to the game system, and the expensive football became the primary part of the management’s expenditure reduction. Including Tianjin Tianhai, Liaoning Hongyun, Shanghai Shenxin and other well-known teams announced their withdrawal from the league. Jiangsu Suning was dissolved after winning the championship. I tell you directly that I don’t even install it. It’s important to flash first.

In 2021, Evergrande’s liquidity crisis broke out and Guangzhou team stopped training. It was reported that Guangzhou team only provided mineral water support training.

Aikesen, Gorat, Fernando and other naturalized foreign aid left Guangzhou. Not only Evergrande, but also all clubs broke rumors of suspension of training and salary arrears, and all the famous foreign aid in that year basically withdrew.

With the departure of high-level foreign aid, there is no doubt that the era of Jinyuan football in China Super League has ended.

Looking back over the past decade, Jinyuan football has indeed improved the appreciation of the Chinese Super League. Watching international stars at home has brought short-term happiness to the fans. The only constant is the embarrassing results of the national football team. But looking back, what causes the chicken feather in the current China Super League?

Chinese football clubs don’t make money at all.

Chinese football clubs have a relatively single way of making money. Ticket revenue, copyright sharing and surrounding income are only a fraction, and most of them rely on sponsor capital injection.

After digging into Evergrande’s financial report, I have only two words in my heart - fear.

According to the financial report of Evergrande club, in 2019, the total cost of the company was 2.892 billion yuan, of which the ticket revenue was only 57.26 million yuan, the CSL dividend bonus was 87 million yuan, and the total loss of the club in 2019 was 1.94 billion yuan. It is worth pointing out that among Evergrande’s advertising revenue of 566 million yuan in 2019, the parent company Evergrande real estate group contributed 463 million yuan.

After deducting the 463 million, that is to say, Evergrande club’s net investment in 2019 was 2.892 billion yuan, the income was only 319 million yuan, and the business of paying 100 million for 900 million was rare in the world!

More sadly, this industry, not only Evergrande, but almost all teams play this way

According to incomplete statistics, Evergrande has invested 20 billion yuan in football in 10 years. Where did the money come from? From people who buy Evergrande wealth management and houses. Lose money and shout, what’s the picture?

Boss Xu once explained that the fund for football is only a fraction of Evergrande’s sales, and football can greatly improve Evergrande’s brand awareness - this is Evergrande’s football strategy and one of the reasons why most real estate enterprises invest in football.

However, in recent years, real estate has entered a downward cycle, and several real estate enterprises have fallen into a liquidity crisis

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