Rebirth of the Industrial Tycoon

Chapter 624 Sponsorship of the CBA

At that time, the cba had not yet started fully commercialized operations. Many teams still adopted the system of the provincial sports team in the past. Players were trained in their own youth training system. Sports authorities in various places will also allocate funds as funds for team operations.

Since there is a lack of commercial factors, it will not be able to bring sufficient commercial profits. The entire league system, from the basketball association of the organizer to the local teams, can get very limited sponsorship.

In 1995, when the cba was first established, the title sponsor was a certain cigarette brand, and in the following years it was sponsored by Hilton China, followed by Motorola and China Unicom.

Anta didn't start sponsoring the cba until it was changed to a secondary vocational basketball team. Afterwards, Li Ning invested heavily and became the title sponsor of the cba. It also came up with a sneaker ban, and participating players could only wear Li Ning's sneakers. .

From the perspective of marketing and publicity, sports brands sponsoring sports events are highly matched with customer groups. The precise delivery of this kind of advertisement is very cost-effective.

However, in the early cba league, there was no title sponsorship of sports brands. .

This pot still has to be counted on Li Ning's head.

At that time, the only domestic sports brand capable of sponsoring the CBA League was Li Ning. The four major local sports brands other than Li Ning have not yet grown up. Even if they want to sponsor the CBA, they are powerless.

So as long as Li Ning does not sponsor, there will be no other sports brand to sponsor cba.

It was not until later that Anta rose and had money in hand 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, coupled with the fact that the national football team is becoming more and more unsatisfactory, causing the public to turn their attention to basketball.

Therefore, according to Zhuge Liang's analysis after the fact, Li Ning did not sponsor the CBA as early as possible, which was a strategic mistake.

Realizing that sponsorship of the CBA can bring great benefits to the brand, Li Ning won the title sponsorship right of the CBA League at a sky-high price in the future.

In 2001, the commercialization of domestic sports leagues was not high, and sports brands did not realize the benefits of sponsoring sports leagues.

Coupled with the fact that the men's football team has successfully entered the World Cup this year, the attention of the people across the country is on football. The fake A league is not only full of seats, but even tickets are hard to come by. Every fake A match can support a lot of people Large herds of cattle. Naturally, the attention paid to CBA has decreased a lot.

It is also because the life of CBA this year is not easy, so Chen Maikang tentatively talked about the sponsorship.

Li Weidong does not reject the sponsorship of the CBA League. If the price is right, Li Weidong is also happy to sponsor.

Basketball shoes are originally the main business of Feiyue Sports. Sponsoring the cba league is definitely the most accurate advertisement 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 One A next season should not be sold yet, right?

Naming rights? Chen Maikang was taken aback. He was just developing a random sponsor, and it would be nice if he could sell a few advertising spaces. Unexpectedly, Li Weidong directly talked about naming rights!

It's probably like, the salesman is selling a house, but the customer pointed to the sand table and said, How can I sell this building?

If someone else dared to ask the price like this, he would definitely be kicked by the crazy and bad tempered person.

However, if a rich man like Li Weidong makes an inquiry, 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 title sponsor for next season. Chen Maikang replied immediately.

in year 2001,

Hilton China has ended its title sponsorship of the CBA, and the CBA League is now in the gap period of the title sponsor.

Moreover, the company that was originally in charge of attracting investment to the cba has quit, which puts the original sponsors of the cba at risk of directly withdrawing their capital.

In order to deal with this problem, the Basketball Association set up a wholly-owned subsidiary, Zhonglan Company, to be responsible for the investment promotion and promotion of the cba.

Then it wasn't until mid-November, when the game had already started, that cba found a title sponsor.

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.

However, this year's CBA League has only received a total of more than 20 million sponsors, which is barely enough for a season's basic operating funds. It can be regarded as the most difficult year since the establishment of cba.

Think about the cba of later generations, with more than 20 sponsors, which can provide more than 700 million sponsorship fees a year, the commercial development of the cba league is still very successful.

Since the cba was in a difficult period at that time, when Li Weidong expressed his intention of title sponsorship, Chen Maikang immediately stared at Li Weidong eagerly, with an expectant expression on his face.

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

In the next few years? Chen Maikang was surprised again. This is not to buy a building, but to wrap up the entire project!

Chen Maikang thought for a moment, and then said: Chairman Li, I, Lao Chen, have never seen anything in the world, so don't make fun of me. The naming rights of our League A for one year are 20 million yuan, and the naming rights for several years , that is 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 opened his mouth to say 20 million, and he deliberately gave a high price first, so that the price can be lowered later.

Li Weidong stretched out a finger and said, I will pay 100 million for the six-year naming rights!

Hearing the number 100 million, Chen Maikang shook his hand, and his chopsticks almost fell to the ground.

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

Moreover, by directly signing a six-year long-term contract, the title sponsorship fee for the next few years will not be worrying.

At that time, the operating expenses of the CBA League for one year probably required more than 20 million RMB. With the 16.67 million title sponsorship fees, it is really impossible to find some other sponsors. It's guaranteed.

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

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

That's great. I'll report to the leader 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, one The sponsorship fee of 100 million is not a problem.

Director Chen, don't worry, I haven't finished talking yet! Li Weidong sat up straight, and then said: I am willing to come out with 100 million, and there are other conditions.

Chairman Li, please tell me. I will report to the leader. As long as it doesn't go too far, I don't think our Basketball Association will refuse. In short, everything is negotiable! Chen Maikang said quickly.

First, I hope that all players participating in League A will wear our Feiyue brand basketball shoes. Li Weidong paused, and then said: The quality of our Feiyue basketball shoes is still very good. Many NBA players All wearing our sneakers.

The quality of Feiyue basketball shoes is naturally very good if they can be sold in the United States, but I am worried that the players and the team will have resistance. After all, there are some players in each team who are sponsored by sneakers. The sneakers you wear don’t cost money.” Chen Maikang said.

Li Weidong went on to say: Director Chen, don't worry, I will pay for the sneakers, and the players and the team don't need to pay a penny. Every player, we will sponsor six pairs of sneakers every season, and the style can also be chosen. ...I think six pairs of sneakers should be enough for a player to wear for a season, right?

Enough. Six pairs of sneakers are enough for one season. Chen Maikang nodded.

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

And the quality of Feiyue sneakers is really good. Brands that can survive in the United States have a lot of American sneaker technology, which is definitely much better than domestic sneakers.

From another perspective, NBA superstars such as Kobe, Carter, and Tracy McGrady can wear it. As an NBA player, what qualifications do you have to dislike it?

The matter of being forced to wear sponsor sneakers was made by the title sponsors of later generations.

At first, foreign players could use other brands of sneakers, but Chinese players could only wear sneakers from cba sponsors.

Players objected to this relatively loudly, and a certain big-name star even threw his shoes in protest. So this is also a relatively controversial policy.

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

In this way, players can wear the sneakers of their own sponsors, and cba also has an extra income.

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

The word interest is what business operations pay attention to, just like the nba, which is originally a business. As long as the interests of the sponsors can be guaranteed, there is no need to worry that the sponsors will not invest money, and with sufficient funds, the league will have the confidence to develop.

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

Sports training is inherently expensive. Behind every successful athlete, there is a huge financial investment. It has never been possible to train high-level athletes with only love power generation, and there will be no high-level professional leagues.

Now Li Weidong directly copied this rule, the purpose of course is to ensure the maximization of sponsorship revenue.

If you are in the NBA, if you want players to wear your sneakers, you have to spend a lot of money. A single Sean Battier has to spend more than one million dollars, and the player endorsements of those star players are even tens of millions. The sum of all nba players is definitely an astronomical figure.

And even if it costs money, other stars don’t have to wear it if they don’t like it. Carter, for example, felt uncomfortable wearing Puma shoes, so he changed to other brands directly.

But in the CBA, you only need to spend 16.67 million yuan to let all the players wear your sneakers, and you will also give away a naming right for free, which is simply too great value!

Looking at professional leagues around the world, where can one find such a good thing?

What's more, Feiyue Sports is not that kind of unknown sports brand. At any rate, it is the top five brand of sneakers in the United States. It can be regarded as a high-end product in the CBA League. Players and teams should not have too much resistance. It would even be very welcome.

The cba league in that era was just commercialized after all, and the salaries of the players were not very high. Many players had their own provincial teams. They were paid as if they were going to work, and the sneakers were distributed by the team. If there is a big brand willing to sponsor sneakers, it is naturally desirable.

A CBA player, give you a basketball shoe of the same style as Kobe, Carter, or Tracy McGrady, even if you don’t like it, at least you are embarrassed to say that the shoes are not good.

And many players are also fans of these stars. If you give them a pair of star-signed boots, they may wear them happily and play more vigorously.

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 that the Basketball Association can make a connection with it so that Dayao of the Eastern team can become our Feiyue sports team. Spokesperson.

Chen Maikang was taken aback for a moment, and then said: You can go directly to the Dongfang team or Dayao himself to talk about such things as advertising endorsements. Why do you need our basketball association to get involved? Our basketball association never cares about such things. things.

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 Chinese athletes' bonuses and advertising endorsement funds. The country has long ago designated the Athlete's Competition Bonuses Management Measures.

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

10 of the competition prize money for individual events will be donated to the National Sports Fund, which will be handed over to the General Administration of Sports. 30 is used as an award fund for training and transporting athletes, and the remaining 60 is for the athletes' own team, which includes the athletes themselves, relevant coaches and related personnel.

For the competition bonus of collective events, 10 goes to the National Sports Fund, 20 goes to the unit that trains and delivers athletes, and 70 goes to the athlete team.

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

So when Dayao went to the United States to play, part of his income was handed over to the Basketball Association, and another part was given to the Eastern team that trained Dayao.

As for advertising endorsement fees, there are also clear regulations. For example, athletes of the national team will get 50 of the endorsement fees themselves, and the rest will be distributed by the national team and the athlete delivery unit.

After all, China's sports practice is a nationwide system. From grassroots sports schools, to provincial sports teams, to the national team, every level of the organization has to spend money. So when athletes can bring economic benefits, every level should also get a share.

Chairman Yao went to play in the NBA. Although he played in a commercial league, he was always inseparable from the domestic basketball association. There are various interests involved, including those of the athletes themselves, those of the Basketball Association, those of the Eastern Team, and those of local governments.

Therefore, it would be better to seek Chairman Yao's endorsement, or to coordinate through the Basketball Association.

Feiyue Sports only pays money, and Li Weidong does not want to participate in the specific distribution of benefits. Let the relevant stakeholders discuss it themselves!

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