Before the new year coming,China National football team officially replaced Adidas with Nike.They signed a contract of 10 years for 1 billion RMB,100 million per year.
100 million per year is a big fortune for China National Team ,considered the terrible performance they have.But compare to the price of chest advertisement Evergrande(110 million a year),IMG sponsored CSL 100 million a year in 1999,this time Nike really takes advantage of China football.
Although the football team of China had miserable years since 2002 World Cup, millions of fans still like watching China football,both CSL and national team,which guarantees the exposure and TV ratings of China football.Moreover, as the government of China started developing football,China football is expected to make progress in the future.Originally,CFA just signed a 5-year contract with IMG which also said the contract amount increases 5% annually.in the comparison of that,this time CFA made a big mistake.
What is worse,commercially they underevaluate the brand value of Nation Team.The rumor is that Wang Jianlin, the former richest man in China,after his merger of Infront,he would choose to invest in China football, 500 million for 3 years at least,which is 70% higher than the price Nike offered.
However that is not all mistakes they made.”Do not put all your eggs in one basket. “ After the contract between CSL and Nike,China National Team is not supposed to collaborate with the same supplier.
In a nutshell,the CFA and the Football Company are both hardly brilliant in business operating,and China football is relatively underdeveloped which leads to the lack of confidence.