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College Sports Association Breach of China's Sports Industry Worries Date: 2018-01-30 14:18
2018 is a key year for the development and reform of the sports industry. In the thirteenth five-year plan for the development of sports, it is necessary to deepen reforms and rationalize institutional mechanisms to create a considerable space for follow-up development.
In particular, the reform of the sports industry, which is characterized by the government-run/national system, is almost the key to promoting the development of the market.
In China's national conditions, almost all sports assets are controlled by the state and distributed in sports, education, and broadcasting systems. The 46th article to promote sports reform is essentially to promote the marketization of sports assets and to act in accordance with market rules. Departing from this basic principle and talking about the development of the industry, it will only be a matter of fact.
However, it is not difficult to understand the big truth that falling into practice is easy to deviate.
Taking the No.46 document as the demarcation point, domestic sports assets have revalued before and after this, and some long-term contracts signed at low prices are facing the risk of unilateral default. Recent reports of violations of the operation rights of the college football league in newspapers are a typical case.
According to reports from various parties, it is not difficult to restore the whole story.
In August 2012, the University Sports Association signed a 5+5 operation agreement with Guangdong Advantage Media Co., Ltd. It was agreed that if 90 days prior to the expiry of the agreement, Advantage Media will use the total amount of cooperation terms for the previous agreement for 5% of the total. The Association will pay the deposit, and the agreement will be automatically renewed for one agreement year.
On August 31, 2017, the first agreement of the two parties expired. Before the expiration date, in February of the same year, Advantage Media paid 5% of the general agreement and requested an automatic renewal. However, this request was generally rejected in a unilateral manner. During the dispute period, the rights to operate campus football, including the Daewoo League, were awarded to Ali Sports, and a farce for a daughter-in-law was staged. Eventually, both parties were accused of courting and the Daewoo League was Forced streaking.
The controversy surrounding the general association with the Daewoo League has continued to this day. It is a sigh of regret. Under the role of the NCAA in the United States, university sports are considered to be gold mines in the domestic sports industry. Today, they are passive due to commercial disputes, and they may face a lock-out when doing well. The development and reform of the ascendant sports industry is not a major one. Blow!
After careful study of the reasons, it is still a question of interests.
In 2012, which roughly agreed with dominant media, Chinese football and even the domestic sports industry were at a low point. The price of operating rights was relatively low. The total cost of cooperation in the previous five years was about 30 million yuan.
By 2017, with the encouragement of national policy documents, capital inflows into the sports industry, and asset prices have risen rapidly. It is reported that the General Association proposed that the overall cost of the new agreement should increase to more than 120 million yuan.
However, it is clear that more than four times the increase has not been recognized by the dominant media, resulting in a deadlock in the renewal negotiations. The General Association has unilaterally awarded the right to operate the Daewoo League to Alibaba Sports when this dispute has not yet come to an end. This has caused the three parties concerned and the entire university sports to fall into an embarrassing situation.
Inspecting the leopard, the general agreement breach is of great significance to the development of the Chinese sports industry.
It should be noted that in the case of gradual and orderly reforms that cannot be achieved in one step, similar events organized by the government and run by social capital are not rare. At the same time, the operation of the competition is a long-term task, and it takes years of investment to form commercial value. Because of this, social capital, including dominant media, tends to sign long-term contracts to make long-term profits and make up short-term losses at the beginning of operations.
From this perspective, the adverse impact of the general contract violation will not be limited to university sports. All the social capital that are interested in promoting the development of China's sports industry will ask why it is necessary to continue investing since short-term investment is likely to be used for others and it is impossible to see returns in the long run.
The instability of the right to operate, especially the unilateral default by official institutions, was originally the biggest concern of social capital invested in the sports industry. The general agreement tells everyone with practical actions. Yes, your concerns are correct!
If such cases are allowed to take shape, the consequences will not be alarmist.
For general agreement violations, we need to look at and think from the perspective of reform and development. To some extent, this represents an anxiety about the development of China's sports industry at the current stage.
When social capital undertakes the right to operate the government-run sports, continuous losses are unacceptable; once IP matures and can form large-scale profits within the agreement period, it will inevitably be accused of the loss of state-owned assets and face sharp price increases, as well as unilateral defaults. The risk of doing wedding dress for others.
How to properly handle such risks and make social capital form a stable expectation has become a top priority and a top priority for sports reform. After all, the lesson from the past is that the vehicle will be overwritten.
Dealing with the general event of contractual breach will become the touchstone for testing China's sports reform. The reform authorities need to be cautious and highly politically motivated and urge all stakeholders, especially relevant official agencies, to act in accordance with market rules.
2018 is a key year for the development and reform of the sports industry. In the thirteenth five-year plan for the development of sports, it is necessary to deepen reforms and rationalize institutional mechanisms to create a considerable space for follow-up development.
In particular, the reform of the sports industry, which is characterized by the government-run/national system, is almost the key to promoting the development of the market.
In China's national conditions, almost all sports assets are controlled by the state and distributed in sports, education, and broadcasting systems. The 46th article to promote sports reform is essentially to promote the marketization of sports assets and to act in accordance with market rules. Departing from this basic principle and talking about the development of the industry, it will only be a matter of fact.
However, it is not difficult to understand the big truth that falling into practice is easy to deviate.
Taking the No.46 document as the demarcation point, domestic sports assets have revalued before and after this, and some long-term contracts signed at low prices are facing the risk of unilateral default. Recent reports of violations of the operation rights of the college football league in newspapers are a typical case.
According to reports from various parties, it is not difficult to restore the whole story.
In August 2012, the University Sports Association signed a 5+5 operation agreement with Guangdong Advantage Media Co., Ltd. It was agreed that if 90 days prior to the expiry of the agreement, Advantage Media will use the total amount of cooperation terms for the previous agreement for 5% of the total. The Association will pay the deposit, and the agreement will be automatically renewed for one agreement year.
On August 31, 2017, the first agreement of the two parties expired. Before the expiration date, in February of the same year, Advantage Media paid 5% of the general agreement and requested an automatic renewal. However, this request was generally rejected in a unilateral manner. During the dispute period, the rights to operate campus football, including the Daewoo League, were awarded to Ali Sports, and a farce for a daughter-in-law was staged. Eventually, both parties were accused of courting and the Daewoo League was Forced streaking.
The controversy surrounding the general association with the Daewoo League has continued to this day. It is a sigh of regret. Under the role of the NCAA in the United States, university sports are considered to be gold mines in the domestic sports industry. Today, they are passive due to commercial disputes, and they may face a lock-out when doing well. The development and reform of the ascendant sports industry is not a major one. Blow!
After careful study of the reasons, it is still a question of interests.
In 2012, which roughly agreed with dominant media, Chinese football and even the domestic sports industry were at a low point. The price of operating rights was relatively low. The total cost of cooperation in the previous five years was about 30 million yuan.
By 2017, with the encouragement of national policy documents, capital inflows into the sports industry, and asset prices have risen rapidly. It is reported that the General Association proposed that the overall cost of the new agreement should increase to more than 120 million yuan.
However, it is clear that more than four times the increase has not been recognized by the dominant media, resulting in a deadlock in the renewal negotiations. The General Association has unilaterally awarded the right to operate the Daewoo League to Alibaba Sports when this dispute has not yet come to an end. This has caused the three parties concerned and the entire university sports to fall into an embarrassing situation.
Inspecting the leopard, the general agreement breach is of great significance to the development of the Chinese sports industry.
It should be noted that in the case of gradual and orderly reforms that cannot be achieved in one step, similar events organized by the government and run by social capital are not rare. At the same time, the operation of the competition is a long-term task, and it takes years of investment to form commercial value. Because of this, social capital, including dominant media, tends to sign long-term contracts to make long-term profits and make up short-term losses at the beginning of operations.
From this perspective, the adverse impact of the general contract violation will not be limited to university sports. All the social capital that are interested in promoting the development of China's sports industry will ask why it is necessary to continue investing since short-term investment is likely to be used for others and it is impossible to see returns in the long run.
The instability of the right to operate, especially the unilateral default by official institutions, was originally the biggest concern of social capital invested in the sports industry. The general agreement tells everyone with practical actions. Yes, your concerns are correct!
If such cases are allowed to take shape, the consequences will not be alarmist.
For general agreement violations, we need to look at and think from the perspective of reform and development. To some extent, this represents an anxiety about the development of China's sports industry at the current stage.
When social capital undertakes the right to operate the government-run sports, continuous losses are unacceptable; once IP matures and can form large-scale profits within the agreement period, it will inevitably be accused of the loss of state-owned assets and face sharp price increases, as well as unilateral defaults. The risk of doing wedding dress for others.
How to properly handle such risks and make social capital form a stable expectation has become a top priority and a top priority for sports reform. After all, the lesson from the past is that the vehicle will be overwritten.
Dealing with the general event of contractual breach will become the touchstone for testing China's sports reform. The reform authorities need to be cautious and highly politically motivated and urge all stakeholders, especially relevant official agencies, to act in accordance with market rules.
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