HONG KONG (Reuters Breakingviews) - Chinese talent will help a top soccer team score multiple goals in 2020. Super-clubs like Manchester United need to tap new income streams as growth slows in sales of European broadcast rights, a traditional cash cow. Signing a player from the People’s Republic, where as many as 300 million people watch the sport, could be one way to plump up the top line.
A golden run is coming to a close. Revenue from UK rights for the English Premier League (EPL) for 2019 to 2022 fell by 10%, the largest decline since the pay-TV live viewing of games began, according to Enders Analysis. Income from digital streams are in flux. International rights sales for the EPL and Spain’s La Liga, meanwhile, grew by 35% over the same period.
A further good kick will come from the right player. Just look at 28-year-old Wu Lei: the Chinese striker played for Shanghai SIPG before joining middling European club Espanyol. He helped them attract over 40 million Chinese viewers during a February game after spending just 12 minutes on the pitch. It is similar to how Manchester United's signing of midfielder Park Ji-Sung gave the team a sales boost in his native South Korea.
The spoils from a Chinese buy can be rich because local fans often follow players over teams, so a smart purchase would also boost overseas sponsorship deals and sales of match-day tickets. That huge potential haul will tempt a club to take the reputational hit of fielding a sub-par athlete.
It’s easier to tap the hallowed market by buying a single player than, say, purchasing an entire Chinese team with opaque finances. Most clubs in the Middle Kingdom’s local Super League are state-owned and sales from tickets and broadcast streams are limited, making them poor money-spinners.
China will host the debut of the new expanded 24-team FIFA Club World Cup in 2021 and wants to become a national soccer superpower by 2050. That means the fan base, and potential earnings, will continue to grow rapidly. Expect the likes of Real Madrid or Paris Saint-Germain to bring Chinese players to the top of the big leagues in the coming year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2019-12-30 03:52:00Z
https://www.nasdaq.com/articles/breakingviews-soccer-giant-will-field-chinese-star-to-kick-sales-2019-12-30
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