Can Equity Crowdfunding Save China Football? Date:2015-05-22 22:13

Eval, who has relied on crowdfunding around the world to successfully advance to the La Liga League, has risen on the Internet to be a new channel for future sports to seek funding. However, the opportunity for Chinese grassroots fans to become local club shareholders depends on the release of the policy.

Football giants AC Milan Club has many fans in China, and now the hardcore fans of the Rossoneri are expected to become the happiest fans in the world, because they have the opportunity to become small shareholders of their favorite club. According to Italian media, five Chinese companies represented by the Wahaha Group will jointly acquire AC Milan in a crowdfunding manner to help the team out of its predicament. The rise of the crowdfunding on the Internet will become a new source of future sports funding. channel.

Crowdfunding Rescue Eval

In recent years, as the Italian economy has entered a recession, the Serie A, which was once known as the world’s first league in the 1990s, has long lost its sight. Perugia, Piacenza and Siena, once active in the Serie A, declared bankruptcy in 2010, 2012 and 2014 respectively. The Palmer Club, with its glorious history, has been changed hands several times. The current price has fallen to a symbolic value of 1 Euro, but it is still unattended. Parma, which is the bottom of the Serie A ranking, has entered a bankruptcy countdown.

Although the AC Milan Club, which has a large number of fans in China and even in the world, is not short of money, due to the old club Berlusconi's reluctance to invest in the declining team, AC Milan, which has a history of more than 100 years, is also listed for sale. Italy’s “All Markets” website reported that under the amalgamation of middlemen, Chinese companies led by Wahaha, together with Evergrande, Wanda, Huawei and Alibaba, will acquire AC Milan Club for 1 billion euros, which the five companies share. It will invest 400 million euros, and the remaining 600 million euros will be raised in China through crowdfunding.

Although the incident has not been confirmed by the relevant companies at present, there are already successful precedents for entering the club in a crowdfunding manner. Dragged by the global economic crisis before this, some clubs with poor management or lack of financial resources have been in trouble and have been forced to seek funds from various sources. The crowdfunding model that emerged from the Internet has thus entered the sports industry.

Spain's Eval Club is the first football club to appeal to crowdfunding. The town of Evar, which is located in the northern part of Spain, has a population of about 30,000. However, the Eval Club that emerged from the town first entered the Spanish First Division in 2014. The Ebank Club, which has been running for a long time, has not yet had time to celebrate the historic breakthrough of the team and was told that it must pay 1.7 million euros in guarantee deposits in order to keep it in the First Division before playing against Madrid, Barcelona and other football giants. Seats.

1.7 million euros is only a month's salary for Barcelona star Messi, but for the Eval club, it is undoubtedly an astronomical figure. As a last resort, Eval chose a fashionable crowdfunding method, which is to raise funds by issuing shares to the community and limiting the amount of subscription money. Equity was first open for club members to subscribe for, but was trapped in the Spanish economy and the limited population of Evar, and did not raise enough funds. In desperation, the Eval Club appealed to all fans and expanded the scope of crowdfunding to allow each person in the world to subscribe for one share at 50 Euros.

With the support of enthusiastic fans around the world, a total of 48 countries and more than 8,000 people bought Eval's shares. Eventually Evar was able to raise 1.98 million euros, thus securing a seat in La Liga. After crowdfunding, Eval’s shareholder number has grown from more than 2,000 to more than 10,000, and fans from China have become the second largest shareholder of Eval Club overseas.

For Evar's minority shareholders, only a minimum payment of 50 Euros is required to become a club's shareholder and obtain the corresponding share certificate. The rights of shareholders include participation in the club’s shareholders’ meeting, free visits to the stadium, shopping at the official store for benefits, and free viewing of the game. In November 2014, in order to express gratitude to the Chinese fans, the Eval Club chairman invited five Chinese minority shareholders to the scene to watch the match between Eval and Real Madrid.

Sports crowdfunding is difficult for civilians?

In 2014, after the State Council issued the "Some Opinions on Accelerating the Development of the Sports Industry and Promoting Sports Consumption," sports began to link up with Internet finance frequently. In June 2014, Alibaba injected 1.2 billion yuan into the Evergrande Football Club. The Beijing Marathon special issue published on the Beijing Morning Post on October 20th, 2014 published the complete list of the Beijing Marathon runners, and included the complete six-hour race runner results. The special issue was jointly raised by Huaao Crowdfunding and the “Beijing Morning Post” in a crowdfunding manner. It successfully raised RMB 130,000 in 30 days and harvested more than 10,000. In addition, it also sold 50 qualifications for participation in a crowdfunding manner.

In January 2015, the Baseball Culture Promotion and Training Operation Project initiated by the Chinese Major League Baseball Association partner Hengda United Investment Co., Ltd. was formally listed on the equity crowdfunding platform of the China Securities Capital Market Development Monitoring Center, becoming the first shareholder of the domestic sports product project. Raise funds. Baseball culture crowdfunding plans to raise 10 to 15 million yuan of funds, and then set up an operation and promotion company.

Similarly, equity crowdfunding, Eval and Chinese baseball crowdfunding model is very different, it is clear that Eval's crowdfunding model is more open. If it only builds a crowdfunding website by itself, it will successfully start equity crowdfunding, while equity crowdfunding in China must first become a member of the China Securities Industry Association and raise funds on its own platform. Second, individual investors can buy Evo's shareholders by buying a share of 50 Euros, and the number of shareholders can reach as many as 10,000. As for the crowdfunding regulations for baseball culture, the number of investors does not exceed 100, and the minimum investment is not less than 100,000 yuan and must be paid within 120 days. Obviously, China's sports crowdfunding is currently unable to replicate Evar's model. The fundamental reason is that the current domestic legal equity crowdfunding can only adopt a non-public issuance mode.

In December 2014, the Securities Industry Association of China issued the "Private Equity Crowdfunding Management Measures", which clearly stated that equity crowdfunding should adopt a non-public issuance method and meet the relevant provisions of the "Securities Law" on non-public issuance. At the same time, the financial assets of individual investors shall be no less than 3 million yuan, or the average annual personal income in the last three years shall not be less than 500,000 yuan, and the total number of shareholders of financing companies shall not exceed 200 persons. Exorbitant investment thresholds and the limited number of shareholders make it impossible for Chinese sports crowdfunding to achieve civilianization in the short term. However, with the rise of internet crowdfunding, public equity crowdfunding is considered by the market to be an equity crowdfunding model that truly caters to the needs of the Internet. The market generally expects that the public equity crowdfunding policy will be liberalized as soon as possible, when China’s grassroots fans will also become China Football Club shareholder opportunities.

However, China's first football club Shenzhen Renren Football Club, which is planned to be built on the Internet crowdfunding plan, will be established later in 2015. All-in-one football established by the Internet Crowdfunding model will achieve the function of participation and self-hematopoiesia. In other words, the team will not be attached to any company or platform in the future, relying on its own hematopoiesis to achieve survival, from the establishment to the club’s daily operations and even management. All expenses will be solved through crowdfunding. The general manager and head coach of the team will also join in crowdfunding, thus becoming the first football club in China to be really generated through crowdfunding. Everyone football has already raised 5 million yuan of club start-up funds.

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