Fu Zhenghao: Unlike the Lakers valuation of 10 billion yuan, some CBA teams are on the verge of selling teams but are under price reduction in various ways

Today, domestic media person Fu Zhenghao posted on Weibo to talk about the survival status of domestic professional basketball. His analysis is as follows.

CBA clubs have reached a crossroads of selling teams this summer. The reason for their stuttering is that there are still huge differences in the valuations of the team between the buyers and sellers. When the Bass family sold the Lakers at a sky-high price of 10 billion US dollars (Weibo text), our professional sports club was still being underpriced by potential buyers because of the team's losses. There are many reasons why CBA clubs cannot make profits, including macro factors and micro reasons why CBA clubs do not pay attention to operations. But from a broad perspective, it is because the current scale of sports consumption is too small, and most people have not yet formed sports consumption habits.

According to the development practices of European and American sports industries, when per capita GDP exceeds US$8,000, the scale of sports consumption begins to grow steadily, and breaking through US$10,000 will usher in the explosion period of the sports industry. Our per capita GDP exceeded US$10,000 for the first time in 2019, but sports consumption has not ushered in the expected large-scale growth.

At the beginning of 2020, when Wang Dawei was the president of the CBA company, he commissioned iResearch Consulting to produce a "2020 CBA Fans' Business Value Research Report". The report depicts that CBA fans generally have wealthy families, have high incomes, strong consumption momentum and desire for consumption, and outstanding overall consumption strength. Senior CBA fans have an average monthly income of 38,000 yuan and an average monthly expenditure of 20,000 yuan. Nearly 40% of CBA fans spend 200,000 or more cars on car purchases; nearly 25% of fans spend more than 50,000 yuan on luxury goods annually; the average annual financial management amount of CBA fans is 259,000 yuan, of which the financial management amount of senior fans is 313,000 yuan.

In those years, the consumption insights of "men's consumption ability is not as good as dogs" are deeply rooted in people's hearts. I believe that many CBA fans will feel ashamed after reading this report, and even suspect that there is another group of CBA fans in this world. If CBA fans really have such strength, then CBA ticket revenue will definitely be more than doubled than now, and clubs will not often "sell teams at zero yuan".

In fact, the overall ticket revenue of sports events in my country in 2019 was RMB 2.2 billion, while the ticket revenue of the four major professional sports leagues in the United States was US$19.3 billion. You should know that there are 330 million people in the United States, while there are 1.4 billion people in our country. 43% of the United States' population goes to watch the game at least once a year, while this proportion is 0.6%. my country's sports competition and performance industry has huge potential for ticket revenue, but there are not many ways to tap this potential at present. Because no matter whether you are rich or poor, everyone is 24 hours a day, and the time you can spend on large entertainment is generally fixed. If you spend more time on videos, e-sports, watching reality shows, and watching movies, you will naturally have less time to spend on sports.

In contrast, in Europe and the United States, there are many programs available for entertainment, and many entertainment methods are also competing with sports. However, European and American children have developed sports habits since childhood, and their families have also formed a strong sports viewing culture, so their sports consumption scale will continue to rise with their economic income. After our income growth, we often choose other entertainment models because we do not have the habit of sports consumption. This is also the reason why our sports industry does not usher in an explosive period like Europe and the United States after the per capita GDP exceeds 10,000 US dollars.

Therefore, if you want to boost the sports competition and performance industry, you must cultivate the sports habits of Chinese people from an early age. Each student masters at least one sports skill. In the final analysis, if you want to develop the sports industry, you must increase the integration of sports education. Chinese people develop sports habits in their youth. Only in time can China's sports consumption scale be greatly improved.

You should know that the NBA was founded in 1946 and was on the verge of bankruptcy until the 1970s. It was the popularity of televisions and the globalization that transformed the NBA from bankruptcy to a super money printing machine. Similarly, we must be patient with CBA, and CBA also needs enough time to grow to bear the profit and loss.

What's more, professional sports are imported products and are the product of highly developed market economy. Many operating models seem to be imitated, but in fact their endogenous logic and driving forces are completely different. The CBA often does not work by copying the NBA, or it is sceptical, and it is naturally incomparable in terms of operational effectiveness. The CBA often gives way to the National Games and the national team. The number of games and competition system in each season change frequently. It is really hard to say that it is a mature performance product. Although it is difficult for CBA to become a market-driven sports competition performance product, if you are good at managing it, the team will be able to bear the profits and losses and sustainable development. #Next season CBA starts in December#