CBA Main Sponsor Has Appointed Lining To Replace Anta.

The contract between Anta and CBA has expired, and after negotiations, Lining will become the new "CBA only designated sports equipment".

The contract period is 5 seasons, and the contract amount is 2 billion yuan in 5 seasons.

In 2006, NBA signed a 11 year contract with Adidas, with a contract value of US $400 million, equivalent to 2 billion 523 million yuan, averaging 230 million yuan per year.

In May 23rd, Goldman Sachs Gao Hua issued a report that lowered the 2012-2014 year earnings per share of China's sporting goods sector and adjusted its rating and target price.

Based on Lining brand strength and

In the next few quarters, sales of Anta will continue to retrogress and business profit margins will be difficult to maintain, so as to maintain the "sell" rating.

A week later, it was reported that the contract between Anta and CBA has expired. After lengthy negotiations, Lining will become a sponsor of the new "CBA only designated sports equipment". The contract period is 5 seasons, and the contract amount is 2 billion yuan in 5 seasons.

The news has not yet been officially recognized by Li Ning Co, but insiders say the contract is almost certain.

Behind the scenes

Three companies were jointly divided.

CBA will launch a League official Handbook every year. The last page of this handbook is a trademark of sponsors.

Last season, CBA sponsors increased from 16 to 22. They were classified into three categories: Official partners, official sponsors and official suppliers.

Among them, Anta is the only designated sports equipment sponsor of CBA, ranking first in the "official partner".

However, after the end of the 2011-2012 season, the contract between Anta and CBA expired, and a fierce competition started immediately with the end of last season's CBA.

A few years ago, Lining's top brass complained to Li Yuanwei, who was the head of Basketball Association at that time, that the best seller in all the sports equipment of Lining was

Losing the CBA league position is a pity.

Now, they finally get the wish to win the long held position of CBA, replacing Anta as the new "CBA only designated sports equipment".

In fact, there have been media reports that CBA has signed a domestic sports brand in the new season. The amount of cooperation between the two sides is 250 million yuan per year plus 50 million yuan of equipment cost.

Yesterday, the fact is that the amount is higher than originally predicted. The contract period between Lining and CBA will be 5 seasons, with an amount of 2 billion yuan in 5 seasons.

It is reported that Lining beat Nike, Anta, Adidas three opponents finally won.

Among them, Nike first dropped out of competition, Nike once quoted 80 million yuan per season, but Lining and Anta offer over 100 million yuan, Nike had to get away.

Due to the high price of the contract, it was planned that the three teams of Adidas, Lining and Anta jointly swallowed the contract, that is to say, three teams split the 17 teams.

But in the discussion, it is difficult for all parties to be satisfied with the coordination of practical problems such as jerseys, Logo shoes and top sponsors' rights. Finally, the Lining family took over.

Prior to the news that the promotion rights of the CBA tournament had been renewed for 5 years with a profit of 330 million yuan per year, some industry experts had raised the question of who would bear the risk of "sky cake".

According to people familiar with the matter, in fact, Lining's contract with CBA is tied up with the profit side. "As far as I know, the contract between the winning side and the basketball association should be signed after the signing of Lining's contract. In other words, the profit side does not need to worry about the loss problem. In fact, after winning the promotion right of CBA, the profit party has earned at least 50 million yuan a year."

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Contrast

More valuable than NBA?

2 billion yuan in 5 years means that Lining will pay 400 million yuan of sponsorship fee to CBA every year.

In 2004, Anta became a sponsor of CBA, when the contract amount was 3 years and 60 million yuan.

After 5 years of renewal, it is still averaging 20 million yuan per season.

8 years later, this figure has doubled 20 times.

Su Qun, editor in chief of the basketball pioneer newspaper, said: "this time the contract between the profit side and the basket tube center expires, at the critical moment of the renewal."

The "Star Wars" came between them.

"The annual fee" that the profit side is soaring, the promoter behind it is the commercial battle between sports brands.

In fact, even this NBA can not be achieved.

In 2006, NBA signed a 11 year contract with Adidas, with a contract value of US $400 million, equivalent to 2 billion 523 million yuan, averaging 230 million yuan per year.

Of course, this is about pure sports brand sponsorship, and TV pmission is not included.

In China, if only sports brand sponsorship is calculated, the Chinese Super League is not as good as CBA.

In 2009, China and Nike signed a ten year contract, and the two sides became strategic partners.

According to the initial estimate, Nike will invest a total of 200 million US dollars, averaging about 125 million yuan per year.

According to media reports, in 2010, 361 degrees signed with the league table tennis tournament, which included not only jerseys, sports shoes and other sponsorship, but also included.

Similar to the nature of the whole package.

But even so, the total cost is only 6 million yuan.

"This amount is really a bit too big, and it has doubled 20 times," said Yang Yi, deputy editor in chief of the Sports Weekly. "Normally, a 5 fold increase is normal.

At that time, the average investment of the league team was $7 million. Now some teams can invest up to $7 80 million. On average, each team has invested more than 35 million yuan a season, the market investment has increased by 5 times, and the increase of 5 times of the sponsor's investment is reasonable.

400 million yuan a year is indeed high.

However, in the key way, sports Consulting Co., Ltd. CEO Zhang Qing seems that this is not a very excessive price, "is it reasonable, it is difficult to judge.

If we consider that the development of China's professional sports is at an initial stage, considering the potential of the Chinese market and the scale of the future economic development, the amount of sponsorship per year will be converted into US dollars, which has been greatly improved compared with the past. But it is not too much. If the news is true, I think this will not be a temporary Li Ning Co.

"

Perhaps Anta's turnover has given many confidence to the latecomers. In 2004, Anta co operated with CBA for the first time, when Anta's turnover amounted to 310 million yuan a year, and by 2011, the figure reached 8 billion 900 million yuan.

Prediction

Reform of the League around the appreciation of space

According to the 2011 financial Yearbook, Lining finally beat Anta to win the top spot of domestic sporting goods brands by 30 million yuan, but their sales growth rate for the first time showed negative growth. Gross profit and net interest rates declined compared with the previous year. In 2010, the net interest rate of Lining was 16%, and in 2011, this figure changed to 7%.

In 2011, their gross profit was 4 billion 114 million yuan, and their net profit was only 386 million yuan.

In the face of the plight of the company, Lining's big hand at this time gives the outside world some worries.

Can CBA bring Lining the expected return?

"Sports in China"

The quality of sports resources is even more scarce, and sponsors do not choose to enter the mainstream top-level League, so the high price is high.

But at the technical level of the contract, Lining needs to show how many games to be increased in one season. In the past, he had made way for the Olympic Games, and the league match had shrunk.

Lining also needs to strengthen communication with consumers, express his brand appeal, strengthen the service guarantee system and improve the degree of professionalization.

Zhang Qing said Lining had to reduce risks through measures.

On the other hand, Zhang Qing also made recommendations to the managers of the CBA League. After receiving the high sponsorship from the sponsors, we should further improve the CBA professional brand and serve the sponsors better.

"The most important thing in the league is not how much money we sell now, but how we continue to professionalism.

A reasonable and systematic arrangement, a sustainable and predictable public process, even if not one step in place, can make people see the future.

Now there's a lot of money, what is the money to spend.

In the past 4 years, the reform of the league has been stagnant, and we hope that the entry of this "huge amount" and the closing of the 4 year reform can open a gap.

In 2005, Li Yuanwei, the former director of basketball center, formulated the "Polaris program" for the development of professional basketball in China. The ultimate goal of the 10 year plan is to promote the development of CBA league matches. Zhang Qing said, "actually the Polaris program has started to work well, but the reform of Chinese basketball has basically stagnated after the Olympic Games. The current CBA is only a semi professional league."

Li Yuanwei also put forward the same view: "CBA appreciation is always a good thing, but the pressure will also increase. The quality of services must keep pace with the increase of sponsorship, and the development of the League should be closer to the market, otherwise it will be difficult to sustain."