Reborn Industrial Tycoon

Chapter 624 Sponsoring CBA

At that time, the CBA had not yet begun full commercial operations. Many teams still adopted the system of the Provincial Sports Team in the past. Players were trained in their own youth training system. There was a formal career establishment when joining the team to play.

Sports authorities in various places will also allocate funds as funds for team operations.

Since there is a lack of commercial factors, it cannot bring enough commercial profits. The entire league system, from the organizer's basketball association to the local teams, can get very limited sponsorship.

In 1995, when CBA was first established, the title sponsor was a certain cigarette brand. In the following years, it was sponsored by Hilton China, and then Motorola and China Unicom New Space.

It wasn't until the name was changed to the Secondary Vocational Basketball Association that Anta began to sponsor the CBA. Later, Li Ning invested heavily and became the title sponsor of the CBA. It also instituted a sneaker ban, and participating players could only wear Li Ning's sneakers.

.

From the perspective of marketing and publicity, sports brands sponsor sports events and are highly matched with their customer groups. This kind of precise advertising is very cost-effective.

However, in the early CBA league, there was no title sponsorship from sports brands.

This blame still has to be placed on Li Ning.

At that time, the only domestic sports brand that had the strength to sponsor the CBA league was Li-Ning. The four major local sports brands other than Li-Ning had not yet grown up, and even if they wanted to sponsor the CBA, they were powerless.

So as long as Li Ning does not sponsor, no other sports brand will sponsor CBA.

It wasn't until Anta rose up and had money that it began to sponsor the CBA.

From the perspective of results, Anta's sponsorship of the CBA League is very successful.

China has a large basketball population. Especially after Chairman Yao entered the NBA, basketball has developed rapidly in China. In addition, the national football team has become increasingly unsatisfactory, causing the people to shift their attention to basketball.

Therefore, after the analysis, Li Ning made a strategic mistake by not sponsoring CBA as early as possible.

Realizing that sponsoring CBA can bring huge benefits to the brand, Li Ning spent a huge price to win the title sponsorship rights of the CBA League in the future.

In 2001, the degree of commercialization of domestic sports leagues was not high, and sports brands were not aware of the benefits of sponsoring sports leagues.

In addition, the men's football team successfully entered the World Cup this year, and the whole country's attention was focused on football. Not only were the fake A league seats packed, it was even hard to get a ticket. Every fake A game could feed a family.

With the large group of scalpers, the attention to CBA has naturally decreased a lot.

It was also because the CBA was not having an easy time this year that Chen Maikang tentatively talked about sponsorship.

Li Weidong is not opposed to sponsoring the CBA League. If the price is right, Li Weidong will be happy to sponsor.

Basketball shoes have always been the main business of Feiyue Sports. Sponsoring the CBA League is definitely the most precise advertising for Feiyue Sports.

So the key is to get the price right.

Li Weidong pondered for a moment, and then said: "Director Chen, the naming rights for League A next season should not have been sold yet, right?"

"Naming rights?" Chen Maikang was shocked. He was just trying to develop a sponsor casually and it would be good if he could sell a few advertising spaces. Unexpectedly, Li Weidong directly talked about naming rights!

This is probably like the salesman selling a house, but the customer pointed to the sand table and said, "How do you sell this building as a package?"

If someone else dared to ask the price like this, they would definitely be kicked in the face by the crazy and bad-tempered person at the time.

However, when a rich man like Li Weidong inquires about the price, there is a high probability that he really has the intention to buy!

"Chairman Li is interested in the naming rights of League A next season? It just so happens that we are also looking for a naming sponsor for next season." Chen Maikang replied immediately.

In 2001, Hilton China ended its title sponsorship of the CBA. At this time, the CBA League was in a vacancy as a title sponsor.

Moreover, the companies that were originally responsible for attracting investment for CBA have also given up their work, which puts the original sponsors of CBA at risk of direct withdrawal of investment.

In order to deal with this problem, the Basketball Association established a wholly-owned subsidiary, China Blue Company, to be responsible for the investment and promotion of CBA.

Then it wasn't until mid-November that the CBA found a title sponsor after the games had already started.

In order to develop business in China, Motorola is willing to spend 15 million yuan to buy the naming rights of the CBA league for one year.

This year's CBA league only attracted a total of more than 20 million yuan in sponsorship, which was barely enough to provide basic operating funds for a season. It was considered the most difficult year since the establishment of the CBA.

Think about the later CBA, which has more than 20 sponsors and can provide more than 700 million in sponsorship fees a year. The commercial development of the CBA league is still very successful.

Since the CBA was in a difficult period at the time, when Li Weidong revealed his intention to sponsor the title, Chen Maikang immediately stared at Li Weidong eagerly with an expectant expression on his face.

Li Weidong said: "I am not only interested in the naming rights of this year's League A, but also in the naming rights of the next few years."

"In the next few years?" Chen Maikang was surprised again. This is not about buying a building, but about covering the entire project!

Chen Maikang thought for a moment, and then said: "Chairman Li, I, Old Chen, have never seen much of the world. Don't joke with me. The naming rights for our League A are 20 million yuan for one year, and the naming rights for several years are worth 20 million yuan."

, that’s an astronomical figure!”

At that time, the naming rights of the CBA league were of course less than 20 million yuan a year. In 2001, Motorola's naming rights were only 15 million yuan. Chen Maikang said 20 million yuan, and he also deliberately gave a high price first so that he could lower the price later.

Li Weidong stretched out a finger and said: "I will pay 100 million for the naming rights for six years!"

When he heard the number "one hundred million", Chen Maikang's hands shook and he almost dropped his chopsticks to the ground.

He quickly calculated in his mind that the title sponsorship fee of 100 million in six years, rounded to an average of 16.67 million, has exceeded the basketball association's psychological expectations.

Moreover, by directly signing a six-year long contract, you won’t have to worry about the title sponsorship fees in the next few years.

At that time, the operating expenses of the CBA League for one year were approximately more than 20 million yuan. With this 16.67 million yuan in title sponsorship fees, we could just find some other sponsorships. If it was not feasible, the Basketball Association would subsidize some more, and the operation of the CBA League would be

It's guaranteed.

Thinking of this, Chen Maikang's tone was full of surprise, and he asked: "Chairman Li, are you really willing to sponsor for six consecutive years?"

"How can I lie to you about this kind of thing!" Li Weidong said with a smile.

"That's great. I will report to the leadership immediately after I go back." Chen Maikang paused and then said: "If Chairman Li is really willing to sponsor for six consecutive years, we should also give a preferential price, a

The sponsorship fee of 100 million is not a problem."

"Director Chen, don't worry, I haven't finished speaking yet!" Li Weidong sat upright and continued: "I am willing to come out with 100 million, and there are other conditions."

"Chairman Li, please speak. I will report to the leadership. As long as it doesn't go too far, I think our basketball association will not refuse. In short, everything is easy to discuss!" Chen Maikang said quickly.

"First point, I hope that all players participating in the A-League will wear our Feiyue brand basketball shoes." Li Weidong paused and then said: "The quality of our Feiyue basketball shoes is still very good, and many NBA players

They all wear our sneakers.”

"The quality of Feiyue basketball shoes is naturally very good if they are selling well in the United States, but I am worried that players and teams will be resistant. After all, some players on each team are sponsored by sneakers. They usually

The sneakers you wear inside don’t cost anything,” Chen Maikang said.

Li Weidong then said: "Director Chen, don't worry, I will pay for the sneakers, and the players and the team don't have to pay a penny. For each player, Feiyue Sports will sponsor six pairs of sneakers every season, and you can choose the styles.

.I think six pairs of sneakers should be enough for a player to wear for a season, right?"

"That's enough. Six pairs of sneakers for one season are enough." Chen Maikang nodded.

Since there is no need to spend money, teams and players should not have much resistance.

Moreover, the quality of Feiyue sneakers is really good. A brand that can survive in the United States has a lot of American sneaker technology, which is definitely much better than domestic sneakers.

To put it another way, Kobe, Carter, Tracy McGrady and other NBA superstars can wear them. As a CBA player, why do you have the right to dislike them?

The forced wearing of sponsored sneakers was something done by later title sponsors.

Initially, foreign players could wear sneakers from other brands, but Chinese players could only wear sneakers from CBA sponsors.

There was a lot of opposition from players to this, and a big-name star even threw his shoes in protest. So this is also a relatively controversial policy.

The final rules were reformed, allowing players to wear other brands of sneakers, but they must pay an additional fee as a buyout fee for the sneakers, which is considered compensation for the title sponsor, and the logo of the sneakers must also be covered up.

In this way, players can wear their own sponsor's sneakers, and CBA also earns an extra income.

As far as this rule of mandatory sneakers is concerned, it is indeed a bit overbearing, but CBA sponsors still welcome this rule. That is why the CBA in later generations can receive more than 700 million in sponsorship fees a year.

Business operations are all about the word "profit." Just like the NBA, it is originally a business. As long as the interests of the sponsors can be protected, there is no need to worry about the sponsors not investing money. Only with sufficient funds can the league be confident.

carry out development.

Sports can talk about ideals, youth, will, and spirit, but as long as it enters the category of professional sports, there is no one in the world who doesn't talk about money!

Sports training is inherently expensive. Behind every successful athlete, there is a huge financial investment. It has never been possible to cultivate high-level athletes and high-level professional leagues simply by using love to generate electricity.

Now Li Weidong directly copied this rule, the purpose of which is of course to ensure the maximum sponsorship income.

In the NBA, if you want players to wear your sneakers, you have to spend a lot of money. A Sean Battier will cost you more than one million U.S. dollars, and the player endorsements of star players cost hundreds or even thousands.

Ten thousand, all NBA players combined, is absolutely an astronomical number.

And even if you spend money, you don't have to wear them if the star doesn't like them. For example, Carter felt uncomfortable wearing Puma shoes, so he just switched to other brands.

But in the CBA, you only need to spend 16.67 million yuan to let all players wear your sneakers, and you will also get naming rights for free. It is simply a great value!

Looking at the professional leagues around the world, where can you find such good things?

What's more, Feiyue Sports is not an unknown sports brand. It is one of the top five sneaker sales brands in the United States. If it enters the CBA league, it can be considered a high-end product. Players and teams should not have too much resistance.

It will even be very welcome.

After all, the CBA league of that era had just been commercialized, and player salaries were not very high. Many players themselves had provincial team establishments. They were paid as if they were working, and their sneakers were distributed by the team. If a big brand was willing to sponsor it,

As for sneakers, they are definitely a must-have.

If a CBA player gives you a basketball shoe of the same style as Kobe Bryant's, Carter's, or Tracy McGrady's, even if he doesn't like it, he will at least be embarrassed to say that the shoes are not good.

Moreover, many players are also fans of these stars. If you give them a pair of boots signed by the stars, they may happily wear them on their feet and play with more energy.

Seeing that Chen Maikang agreed to this request, Li Weidong went on to talk about the second condition: "Director Chen, the second request is that I hope the Basketball Association can pull the strings and let Yao from the Eastern Team become our Feiyue Sports.

Spokesperson.”

Chen Maikang was stunned for a moment, and then said: "For things like advertising endorsements, you can go directly to the Oriental Team or Dayao himself to talk about it. Why do we need our Basketball Association to pull the strings? Our Basketball Association never cares about this kind of thing.

thing."

"Dayao's situation is quite special. He will enter the NBA in the future, and then it will be related to the Basketball Association." Li Weidong replied with a smile.

Chen Maikang rolled his eyes and immediately understood what Li Weidong meant.

There are clear regulations on the distribution of bonuses and advertising endorsements for Chinese athletes. The country has long designated the "Measures for the Management of Prize Money for Athletes' Prize Competitions".

The first is personal income tax, which has certain exemptions. Prize money for some large competitions, such as the Olympic Games, is exempt from personal income tax.

10% of the competition bonuses for individual events are donated to the National Sports Fund, which is handed over to the General Administration of Sports. 30% is used as a reward fund for the training and training units of athletes, and the remaining 60% is for the athletes' own teams. This team includes athletes

myself, the relevant coaches and related personnel.

For team event competition bonuses, 10% will go to the National Sports Fund unchanged, 20% will go to the unit that trains and transports athletes, and 70% will go to the athlete team.

The money earned by athletes who go abroad to play in professional leagues is equivalent to game bonuses, and part of it will be turned over to the country.

So when Dayao went to play in the United States, part of his income was given to the Basketball Association, and part of it was given to the Oriental Team that trained Dayao.

As for advertising endorsement fees, there are also clear regulations. For example, national team athletes receive 50% of the endorsement fees themselves, and the remainder is distributed between the national team and the athlete transport unit.

After all, Chinese sports pursues a nationwide system. From grassroots sports schools, to provincial sports teams, to national teams, each level unit spends money. Therefore, when athletes can bring economic benefits, each level

Everyone needs a share of the pie.

When Chairman Yao went to play in the NBA, although he was playing in a commercial league, he was always inseparable from the domestic basketball association. There were various interests involved, including the athletes themselves, the basketball association, and the Eastern Team.

, and there are places.

Therefore, it would be better to ask Chairman Yao to speak for him or to coordinate through the Basketball Association.

Feiyue Sports only contributes money. Li Weidong does not want to participate in the specific distribution of benefits. Let the relevant stakeholders discuss it on their own!

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