Download China`s Football Market: Development From Grass Roots To Elite

China’s Football Market:
Development From Grass Roots To Elite Level
MATT DURNIN
Head of Research & Consultancy – British Council China
QI QI
Head of Education, Events and Sport
British Council China
I.
II.
III.
IV.
Macro context
Key players and domestic initiatives
UK-China joint initiatives
Opportunities
I. Macro context
I. Macro context
China’s investment in sport
Rmb
% of overall investment
120
100
20%
80
15%
60
10%
40
5%
20
0%
0
2004
Source: CEIC
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Rmb bn
% of overall investment
25%
I. Macro context
China’s top five sports by viewership
11.5%
36.2%
19.2%
Basketball
Ping pong
Football
Badminton
Gymnastics
21.1%
21.3%
Source: Wei R and Bingshu, Z. (2015). Annual report on development of sports industry in China. Social Sciences Academic
Press (China). ‘Watched’ in this context is defined as watching on television or attending the sporting event in person.
I. Macro context
Average attendance at CSL football matches
25,000
20,000
15,000
10,000
5,000
0
2004
2005
2006
2007
Source: China Super League
2008
2009
2010
2011
2012
2013
2014
2015
I. Macro context
Factors driving football development: rising incomes
China’s distribution of annual household incomes
140,000
1990
Households (thousands)
120,000
2015
100,000
2030
80,000
60,000
40,000
20,000
0
100
Source: Euromonitor
1,000
10,000
USD, constant 2015 prices
100,000
1,000,000
I. Macro context
Factors driving football development: public health
% of population aged 15+ classified as overweight
Diabetes prevalence
12
40
35
10
30
8
%
25
20
6
15
Mainland China
10
Mainland China
South Korea
2
Taiwan
5
0
Taiwan
4
Japan
Japan
South Korea
0
2010
2011
2012
Source: World Health Organisation
2013
2014
2015
2010
2011
2012
2013
Source: World Health Organisation
2014
2015
I. Macro context
Factors driving football development: checkered past
I. Macro context
Factors driving football development: leadership support
Xi’s three football wishes:
• Qualify for another World Cup
• Host a World Cup
• Win a World Cup
II. Key players and domestic initiatives
II. Key players and domestic initiatives
Two top-level leading groups
• Football Reform Leading Group
– Led by Vice Premier Liu Yandong (Chair)
– Director General of General Administration of Sports Liu Peng (Vice-Chair)
– Chairman of Chinese Football Association Cai Zhenhua (Office Director).
• A cross ministerial National Leading Group on Youth and Campus Football
– Led directly by Education Minister Yuan Guiren
– Other ministries involved include General Administration of Sport, National
Development and Reform Commission and the Ministry of Finance
II. Key players and domestic initiatives
Professional
MOE
General
Admin. of
Sports
Chinese
Super
League
China
League
One
Grassroots
China
League
Two
Federation of
University
/School Sports
Dept. of
Physical Health
and Arts Ed.
China
Football
Assoc.
Football
in
Schools
II. Key players and domestic initiatives
China’s Football Development Reform Plan 2015-2025 (March 2015)
Objectives of the reform:
•
To improve football education across the country
•
To raise awareness of health benefits
•
To promote widening participation
Targets:
•
To increase the number of schools with strength in football:
20,000 by 2020; 50,000 by 2025
•
50,000 full-time and part-time football coaches trained by 2020
In addition, China aims to create a sports industry worth USD800billion (1%GDP) by 2025.
II. Key players and domestic initiatives
China’s Football Mid-Long Term Development Plan 2016-2050 (April 2016)
Jointly published by the National Development and Reform Commission, the
Chinese Football Association, the General Administration of Sport and the Ministry
of Education
Overarching objective: To become a “world
football superpower” by 2050
Interim targets:
•
•
•
•
Become one of Asia’s best teams by 2030
50 million soccer players (including 30 million school children) by 2020
At least 20,000 football training centres and 70,000 pitches in place by 2020
Ensure there is one football pitch for every 10,000 people by 2030
II. Key players and domestic initiatives
1)
Reform the structure of the Chinese Football Association
Historical context
Proposed reforms
Traditionally, GAS and the CFA were
part of the same organizational
structure; they shared budget,
personnel, and the CFA reported up to
GAS bureaucrats on issues related to
football.
Separate CFA from government-related
organizations (including the GAS)
II. Key players and domestic initiatives
2) Reform and improve club football’s operations:
Historical context
Proposed reforms
Although football clubs act as the main
pillar of China’s professional football
ecosystem, they traditionally lacked a
robust financial, organizational, and
administrative foundation. As a result,
many football clubs have changed cities
and ownership leading to instability.
• Football clubs should improve their
overall management, focusing on
operational and financial stability, to
promote football at the city level.
• Promote a more diverse holding structure
among clubs, including government,
private enterprise, and individual
investors as the club’s shareholders,
including investors from the region where
the club is geographically headquartered.
• Promote a more sustainable talent
attraction and retention system
II. Key players and domestic initiatives
4) Reform and promote school football development
Historical context
Proposed reforms
Football in the schools has traditionally
been the Achilles heel of the sport’s
development pipeline. The historical
focus on competition and winning , over
cultivating student interest in the sport,
has severely limited the pool of players
that choose specialized training.
Investment has also been limited to a
select number of players, with
government plans to expand investment
through the MOE.
• Promote football at the primary and
middle-school level; increase the number
of schools with specialized football
programs.
• Increase female participation in school
football
• Improve the quality and number of
coaches at the primary level: By 2020,
training for an additional 50,000 coaches
at these levels should be completed.
II. Key players and domestic initiatives
5) Develop football at the grassroots level
Historical context
Proposed reforms
Grassroots football (ex-schools) has
also been a weak link in the industry.
Robust community and semi-pro
leagues have emerged in major cities
throughout the country; however, strict
land use regulations, coupled with
limited resources, have stifled further
development.
• Promote football’s development at the
grassroots level, including hobbyists,
community groups, army, and private
organization participation.
II. Key players and domestic initiatives
6) Improve football professional training and talent development
Historical context
Proposed reforms
The talent development pipeline in
China’s football industry, particularly at
the professional level, is weak.
Professional football teams usually just
purchase high-profile players without
developing robust in-house training
programs and schools.
• Improve programs for football
professional training and development,
including developing a more
comprehensive training system at the
national and regional level for players,
and coaches and referees.
• Also improve training programs for
football club management professionals.
II. Key players and domestic initiatives
7) Promote development and reform of the national team
Historical context
Proposed reforms
The Chinese government has
traditionally put substantial emphasis on
the national teams’ performance (men
and women). Emphasis and resources,
however, have not led to substantial
improvement.
• The reform document’s lack of emphasis
on the national team vis-à-vis other
industry segments is seen as a
pronounced change in strategy from
previous efforts.
• Improve the overall quality and level of
the national football team, including
increasing the total amount of investment
in the team, policies to improve team
development and infrastructure building:
build two new national training facilities.
II. Key players and domestic initiatives
8) Increase football field construction
Historical context
Proposed reforms
Lack of usable land and football pitches
has limited the sport’s development,
particularly at the grassroots level.
Government ownership of land, and an
attendant real estate boom, has meant
fewer football fields were built.
• Increase the number of football fields
(pitches) nationwide, including greater
emphasis on the construction of football
pitches at the county and rural levels.
II. Key players and domestic initiatives
9) Improve investment channels in the industry
Historical context
Proposed reforms
Traditionally, the state sector has
played a key role in planning, financing,
and operating in the sport. Perhaps the
biggest reform proposed was to
formally welcome private-sector
participation.
• Diversity the source of investment in the
football industry, including greater
attraction of private investment.
• Create a football development fund.
II. Key players and domestic initiatives
Pilot cities
Five ‘pilot’ football cities were selected in 2012 to serve as sites for football reform activities at all
levels:
• Chengdu
• Dalian
• Guangzhou
• Qingdao
• Wuhan
Some pilot cities, such as Qingdao, have released a 10-year development plan outlining detailed
football industry goals, while others are currently drafting long-term plans.
II. Key players and domestic initiatives
per capita spending on CER (Rmb)
Culture, education and recreation (CER) spending in Pilot Football Cities
(bubble size indicates city population)
7,000
6,000
Guangzhou
5,000
Wuhan
4,000
3,000
Chengdu
2,000
1,000
Qingdao
Dalian
0
20,000
Source: CEIC
25,000
30,000
35,000
Urban per capita disposable income (Rmb)
40,000
45,000
II. Key players and domestic initiatives
Pilot city
Strengths
Qingdao
Football history, 10-year plan, Match planning and industry
industry hardware
planning infrastructure
Guangzhou
Strong professional club
influence, separated industry
management at city level,
robust investment
environment
Chengdu
Strong youth training and
grassroots program potential
Wuhan
Youth training
Dalian
Youth training
Weaknesses
Uneven industry hardware
development across districts,
unconnected talent pipeline from
youth football upwards
Industry hardware and financing for
the sport
Lack of land for football pitches
and industry hardware
Lack of football pitches and
financing
III. UK-China joint initiatives
© FUSC
III. UK-China joint initiatives
Top Joint Initiatives
Elite Football
3. “Tomorrow’s Star” Youth Football
Development Programme
2. Chinese Campus Football
Coaches Study in the UK
Programme
Grassroots
football
1. China-based UK Training
Programme for Chinese Campus
Football Coaches
UK-China Joint Accreditation for
Chinese Football Coaches
III. UK-China joint initiatives
UK-China Joint Accreditation for Football Coaches
•
•
•
China’s first ever joint accreditation framework with another country on football
coaching
To train up 5,000 coaches under the framework by 2020 to build a network of
advocates for the UK that would provide access to over 5 million young students
To create a long term legacy by working with China on joint accreditation of football
coaches and development of qualified local coach trainers
UK partners
Chinese partners
British Council
Federation of University
Sports of China
Premier League
China School Sports
Federation
The FA
Chinese Football
Association
III. UK-China joint initiatives
Draft Joint
Accreditation
Framework (TBC)
Premier Skills Level 3
(Coach Educator Programme)
The FA Level 3
(International Advanced)
CFA B License
The FA Level 2
(International Intermediate)
CFA C License
The FA Level 1
(International Foundation)
CFA D License
Premier Skills
Level 2
Premier Skills
Level 1
Entry level
III. UK-China joint initiatives
Chinese Campus Football Coaches Study in the UK Programme
•
•
On national level, 600 Chinese football coaches will be selected from across the
country and sent to the UK for a customised 3-months’ training programme between
2016 and 2018. All cost will be covered by the Chinese central government.
On provincial/municipal level, local governments / education committees may arrange
separate training programmes in the UK using their local budgets.
UK partners
Chinese partners
British Council
Federation of University Sports of China
UK universities and colleges
China School Sports Federation
Foundations, academies, and
clubs
China Scholarship Council
Training providers in private
sector
Chinese Provincial Governments and Education
Committees
III. UK-China joint initiatives
“Tomorrow’s Star” Youth Football Development Programme
•
This programme focuses on development of youth football at professional level
UK partners
Chinese partners
Department for Culture, Media
and Sport
General Administration of Sport of
China
British Council
All China Sports Federation
Collaboration in 7 Broad Areas
1. Youth Exchange
5. Managerial-level Cooperation and
Exchange
2. Talent Training
6. Policy Dialogues and Forums
3. Coach Training
7. Training Camps
4. Referee Training
IV. Opportunities
IV. Opportunities
Training
• Schools offering football training to Chinese young people have recently seen significant growth.
• It is also significant foreign involvement, for example schools owned by famous retired footballers, or by
well-known overseas football clubs.
IV. Opportunities
Broadcast media and digital content
• TV is still the main medium for Chinese viewers to watch football, but digital streaming services are
growing in popularity and Chinese online video platforms have also invested significant sums in football
broadcasting.
• Aside from the domestic Chinese league, the English Premier League, German Bundesliga, Spanish La
Liga and Italian Serie A are also popular with Chinese football fans, both on TV and online.
• Digital content for skills development may also present opportunities.
IV. Opportunities
Constructing, operating and renting out football pitches at all levels
• At the professional level, stadiums are typically owned by the local government and rented to the
relevant team, while schools’ pitches are also government-owned and operated.
• However, pitches for amateur or semi-professional use are increasingly owned by companies or
entrepreneurs, who rent these pitches out for a profit.
IV. Opportunities
Apparel and equipment
• China’s market for football apparel is still relatively underdeveloped.
• In contrast to other sports like basketball or running, the football sportswear market is dominated by
overseas companies Nike and Adidas, which according to Barclay’s research hold a 95 per cent share
of the market.
• The market for replica shirts is particularly underdeveloped compared to Western countries, according
to observers.
IV. Opportunities
Professional teams
• Chinese professional football teams are typically owned by one or more large domestic companies –
mostly real-estate developers, but also insurance companies, internet companies and electronics
retailers.
• Aside from ticket sales and the clubs’ share of broadcasting rights revenues, many clubs’ main source
of income is still investment from the parent company, while merchandise sales contribute little revenue
by international standards.
• Clubs spend large and increasing amounts of money on foreign star players, which might make them
financially unsustainable in the long term.
IV. Opportunities
UK operating context in China
•
China is a highly developed market
•
No matter which areas your expertise is in, selection of right partner(s) is crucial
•
Prioritisation by markets - consistent approach and presence are important
Going for Export Gold:
Opportunities in Major Sports Events