Rebirth of the Industrial Tycoon

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 regions will also allocate funds to fund 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.

When 1ba 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 change to the Chinese Professional 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 customer groups. The accurate delivery of this kind of 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, Li Ning was the only domestic sports brand that had the strength to sponsor the CBA League. 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, 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 a results perspective, 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 soon as possible.

Also realizing that sponsoring CBA can bring huge benefits to the brand, Li Ning spent a sky-high 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 games packed, it was even hard to get a ticket. Every fake A-league game could feed a family. A large herd of cattle. Naturally, the focus on the CBA has dropped 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 originally just developed 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 a salesperson selling a house, but the customer points to the sand table and says, "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 beginning.

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 for 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 the vacancy of title sponsors.

Moreover, the companies that were originally responsible for attracting investment for the CBA have also given up, which puts the original sponsors of the 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 the CBA.

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

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 can be regarded as the most difficult year since the establishment of CBA.

Think about the CBA in later generations, with more than 20 sponsors that 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 League A this year, 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 wrapping up 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, 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.

And 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 about 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 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 don't think our basketball association will 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. 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 is 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. Brands that can survive in the United States have 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 caused by later title sponsors.

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

Players were quite vocal in their opposition to this, and a certain 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 had to pay an additional fee as a buyout fee for the sneakers, which was considered compensation for the title sponsor, and the logo of the sneakers had to 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's why later generations of CBA can receive more than 700 million in sponsorship fees a year.

What matters in business operations is the word "profit." Just like the NBA, it is originally a business. As long as the interests of sponsors can be protected, there is no need to worry about sponsors not investing money. Only with sufficient funds can the league 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 doesn't talk about money!

Sports training is inherently expensive. Behind every successful athlete, there is huge economic 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 has directly copied this rule. The purpose is of course to ensure the maximum sponsorship income.

If you are in the NBA and want players to wear your sneakers, you have to spend a lot of money. Shane Battier costs more than one million US dollars, and the player endorsements of star players cost hundreds and tens of millions. The sum of all NBA players is absolutely an astronomical figure.

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 changed to other brands.

But in 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 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. Even welcome.

After all, the CBA league of that era had just been commercialized, and player salaries were not very high. Many players were affiliated with provincial teams, and they were paid as if they were working, and their sneakers were distributed by the team. If a big brand is willing to sponsor sneakers, it would be a dream come true.

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 Dayao of 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 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 from some major competitions, such as the Olympic Games, is exempt from personal income tax.

10% of the competition bonus for individual events is donated to the National Sports Fund, which is given to the General Administration of Sports. 30 is used as a reward fund for the unit that trains and transports athletes, and the remaining 60 is for the athlete's own team. This team includes the athlete himself, relevant coaches and related personnel.

For competition bonuses for collective events, 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 going 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 handed over to the Basketball Association, and another part was given to the Oriental Team that trained Dayao.

As for advertising endorsement fees, there are also clear regulations. For example, national team athletes will get 50% of the endorsement fee themselves, and the rest will be 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 the national team, every level unit has to spend money. So when athletes can bring economic benefits, every level must also get a piece of the pie.

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

Therefore, it would be better to seek Chairman Yao's endorsement 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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