Anta has expired contract with the CBA negotiations, Li Ning will become the new "Snapbacks wholesale CBA sole equipment sponsor, the contract period is for five seasons, the contract amount of $ 20 billion in the five seasons. In 2006, the NBA signed a 11-year contract with Adidas contract worth 400 million U.S. dollars, converted into RMB 2.523 billion yuan, an average of 230 million yuan a year.
Morning Post reporter Zhang Jing
May 23, Goldman Sachs Gao Hua, a report down the sporting goods sector 2012-2014 earnings per share measured, and adjust the shares rating and target price. Rising based on the Li Ning brand strength and profitability, maintaining a "buy" rating; material Anta next few quarters, sales will continue to retrogression, operating margin is difficult to continue to maintain a "sell" rating.
A week later, news, Anta and CBA contract has expired, after lengthy negotiations, the Li Ning will become the new "CBA sole equipment sponsor, the contract period is for five seasons, the contract amount for five season 20 billion. The news has not been official recognition of Li Ning Company, but the source said, the contract is almost clinches.
Behind the scenes
Has been brewing three join forces to split
CBA a year to launch a league official manual "printed on the last page of this manual is the sponsors' logos. Last season, the CBA sponsors increased from 16 to 22, they are classified as "official partner", the three types of "official sponsor" and the "official supplier". Among these, Anta as the CBA's sole equipment sponsor, came in an "official partner". However, after the end of 2011 - 2012 season, Detroit Pistons Anta and CBA contract expires immediately carry out a fierce competition with the end of the CBA last season.
A few years ago, Li Ning, the senior had then CBA head Li Yuanwei complain, Li Ning sports equipment, the best selling basketball shoes, losing CBA league this position is a real pity. Now, they finally got what they wanted to win the CBA piece of thinking about the long-positions, replacing the ANTA become the new "CBA sole equipment. In fact, before have the media to disclose the CBA new season, has signed a domestic sports brand, the amount of cooperation is an annual 250 million yuan in cash plus 50 million yuan of equipment costs. The facts exposed yesterday, the amount higher than originally projected, Li Ning and the CBA contract period will be five seasons, the amount of $ 20 billion in the five seasons.
It is reported that Li Ning defeated three opponents of Nike, Anta, Adidas win. Nike earliest out of the competition, and Nike have to offer 80 million yuan per season, but the offer of Li Ning and Anta have a billion, Nike had to walk away. Contract offers a lot of money, was planning to swallow the contract, Adidas, Li Ning and Anta three is three to split the league 17 teams. In the discussion on uniforms, shoes Logo, top sponsors interests the coordination of these practical problems, it is difficult for all parties are satisfied with the final Li Ning, one to take over.
CBA league to promote the rights when the news came to 330 million yuan a year and Infront renewal five years ago, when industry experts have raised the question who should bear the risk of price cake ". To informed sources, the fact, Li Ning, the contract with Infront and the CBA are bundled together, as far as I know, Infront and the CBA contract signed after Li Ning, the contract signed, in other words, Infront do not have to worry about a loss fact, Infront won the CBA to promote the right of every year has a profit of at least 50 million yuan fetched. "
Worth more than the NBA?
$ 20 billion in five years, means that Li Ning annually to the CBA to pay $ 400 million sponsorship fee. In 2004, ANTA became the sponsor of the CBA, the amount of time signing for 3 years and 60 million yuan. After to renew for five years, is still an average of every season of 20 million yuan. Eight years later, this figure doubled to 20 times. Basketball Herald editor-in-chief Suqun said, "This time Infront and the CBA expiration of the contract, the critical moment of renewal, the sports brand 'Star Wars' of the touch. surplus side boom 'annual fee', the promoters behind the commercial war between the sports brand. "
In fact, this figure, even if the NBA can not match. In 2006, the NBA and Adidas signed a 11-year contract, the contract value of $ 400 million, equivalent to RMB 2.523 billion yuan, an average of 230 million yuan per year. Of course, here it is just pure sports brand sponsorship, television is not included. In the country, if calculated only sports brand sponsorship, Super nor the CBA. In 2009, Super League and Nike signed a decade-long contract, the two sides to become strategic partners. According to initial estimates, Nike is investing 200 million U.S. dollars,New era snapbacks wholesale an annual average of about 125 million yuan. According to reports in the media before, in 2010, 361 ° Table Tennis Super League contract, which were not only includes the sponsorship of uniforms, shoes, etc., and also includes the naming rights, similar to the nature of the whole package. But even so, the total cost of only 6 million yuan.
"This amount is a bit too much, and turned over 20 times," "Sports Weekly , "Yang Yi, deputy editor said, "Normally, an increase of five times normal at that time, the Union The average input of the team's seven or eight million yuan, some team put into to seventy-eight tens of millions of dollars, on average, each team a season invested more than 35 million yuan, market investment is equivalent to an increase of 5 times, sponsorship suppliers of inputs increased by five times it is reasonable to 400 million yuan a year, really high. "
However, it seems the key to Road Sports Consulting Co., Ltd. Zhang, CEO, this is not an excessive price, "is not reasonable, is still difficult to judge if you take into account the development of China's professional sports is in its infancy, considering the Chinese market potential for future economic development of the scale, and then translated into U.S. dollars for each year the amount of sponsorship, and in the past has greatly improved, but not going too far, the message is true, I think this will not the Li Ning impulse consumption.
Perhaps the Anta these years the turnover to a latecomer a lot of confidence in 2004, Anta and the CBA, the the Anta year turnover of 310 million yuan in 2011, this figure reached 8.9 billion yuan.
Appreciation of the space around the league reform
According to the 2011 Annual Financial, Li Ning, the final defeat the advantage of 030 million yuan ANTA to recapture the sporting goods brands top spot, but their sales growth rate of the first negative growth, gross margin and net profit margin over the previous year decline in 2010, Li Ning, the net profit rate of 16 percent in 2011, this figure changed to 7%. In 2011, their gross profit was 4.114 billion yuan,Monster Energy Snapback Hats Hats net profit was only 386 million yuan.
In the case of companies facing difficulties, Li Ning at this time throw the big to the outside world can not help but have some concerns. CBA to Li Ning, the expected return?
China's sports resources are scarce, high-quality sports resources more scarce, not the choice of the sponsor to enter the mainstream top league, so the highest bidder. But in the contract, the technical level, Li Ning needs to specify a season to increment the number of field game, had to make way for the Olympics , the league schedule shrink, and this should not occur. Lee should also be strengthened and consumer communication, clear expression of the brand appeal, but also to strengthen the service support system to improve the degree of specialization. " Zhang, Li Ning, through measures to reduce the risk.
On the other hand, Zhang also suggested that the CBA league managers should further improve the high sponsorship of the sponsors, the CBA Professional brand better service for sponsors. "League of the most important thing is not to sell, but how to continue the process of professionalization. Reasonable institutional arrangements, sustainable public process can be expected, even if not one step can make people to see into the future. now suddenly rich, money is how to spend the past four years, the league reform stagnation, I hope this 'huge' access, shut down four years of reform and the door can be pushed to a gap in 2005, before the basket tube Li Yuanwei, director of the Center, to develop a Chinese professional basketball "Polaris Plan, the ultimate goal of this 10-year plan is to promote the development of the CBA league, Zhang said," In fact, Polaris plans began well, but the reform of the Chinese basketball after the Olympics basically stagnant, and the current CBA also semi-professional league. "
Li Yuanwei also asked the same view: "the CBA is a significant appreciation is always a good thing, but the pressure will increase, followed by sponsorship amount increased at the same time,Detroit Lions the quality of services must keep pace with the development of the League should be more close to the market, but if something is unsustainable. "

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    April 2012



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